Exam 1: Introducing Financial Accounting

A corporation purchased a $40,000 delivery truck by paying $4,000 cash and signing a $36,000 note payable.Immediately prior to this transaction the corporation had assets,liabilities,and owners' equity in the amounts of $75,000,$52,000,and $23,000 respectively.What is the total amount of the corporation's assets after this transaction has been recorded?

Identify the three basic forms of business organizations.

Assets created by selling goods and services on credit are:

The International Accounting Standards Board (IASB) issues International Financial Reporting Standards (IFRS) that identify preferred accounting practices.

The Maximum Experience Company acquired a building for $500,000.Maximum Experience had an appraisal done and found that the building was worth $575,000.The seller had paid $300,000 for the building six years ago.Which accounting principle would prescribe that Maximum Experience record the building on its records at $500,000?

The financial statement that describes where a company's cash came from and how it was spent during the period is the:

The business entity assumption requires that a business be accounted for separately from other business entities,including its owner or owners.

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

A company borrows $125,000 from the Eastside Bank and receives the loan proceeds in cash.This represents a(n):

A corporation:

Beginning assets were $437,600,beginning liabilities were $262,560,common stock issued during the year totaled $45,000,revenue for the year was $414,250,expenses for the year were $280,000,dividends declared were $22,700,and ending liabilities were $350,000. What was net income for the year?

Cool Tours had beginning equity of $72,000,net income of $25,000,and dividends of $9,000.Calculate the ending equity.

If beginning retained earnings was $184,300,net income for the period was $200,000,and ending retained earnings was $322,000,what was the total amount of dividends distributed for the period?

Ending liabilities were $67,000,beginning equity was $87,000,common stock issued during year totaled $31,000,expenses for the year were $22,000,dividends declared totaled $13,000,ending equity for the year was $181,000,and beginning assets for the year were $222,000. What was net income for the year?

Sara Bloom has prepared the following analysis of September transactions for her business,Blooming Florist.Unfortunately,she has lost some information.Determine the missing amounts (a) through (c) below:

Revenues are increases in retained earnings from a company's earnings activities.

If equity is $300,000 and liabilities are $192,000,then assets equal:

On September 30,Ambiance Inc.receives its electric bill for the month of September in the amount of $300.Ambiance sets the bill aside since it is not yet due.How would Ambiance record this transaction?

On August 1,Marietta Appliance Repair paid $2,500 cash to rent office space for the month of August.How would Marietta record this transaction?

Which of the following is the primary purpose of accounting?