Exam 2: Reporting Investing and Financing Results on the Balance Sheet

For each of the following,indicate how the event would most likely be categorized. EVENT ______ (1)A company sells $2 million in goods for immediate payment. ______ (2)The company uses up office supplies. ______ (3)The stock market rises 10% and the value of a company's stock increases. ______ (4)A company pays cash to an inventor for the legal rights to produce a new product. ______ (5)Management promises to pay workers an overtime bonus as required by their union contract. ______ (6)A company uses up supplies to manufacture a product. ______ (7)A company receives $1 million in orders but no down payments. CATEGORY EE - External Exchange IE - Internal Event NT - No Transaction

Who has first claim to a business's assets should the company go out of business?

Which account would be decreased with a credit?

Which of the following statements about the balance sheet is correct?

A company purchased equipment for use in the business at a cost of $12,000,one-fourth was paid in cash,and the company signed a note for the balance.The journal entry to record this transaction will include a:

Which of the following statements about the debit/credit framework is correct?

Which of the following statements regarding posting and classification is correct?

A trial balance:

_________________ are of special importance because they are the only activities that enter the financial accounting system.

Identify the account title that may be used to record borrowing cash in exchange for a promissory note.

A journal does all of the following except:

Which of the following is a financing activity?

A chart of accounts is a:

An accounting system is referred to as a double-entry system because:

Which of the following requires a credit?

Which of the following would be classified as a noncurrent liability on the balance sheet at December 31,Year 1?

Which of the following would cause a trial balance to be out of balance?

Transactions are first entered in the:

Which of the following applies to Accounts Payable?

In Year 2,the Denim Company bought an acre of land that cost $15,000.In Year 5,another company purchased a nearby acre of land for $28,000 and a different company purchased another nearby acre of land for $26,000.As a result,an appraiser estimated hat the acre owned by Denim had increased in value to $27,000.If Denim prepares a balance sheet at the end of Year 5,the acre of land that it owns should be reported at: