Exam 1: Accounting in Business

Prepare a April 30 balance sheet in proper form for Two Rivers Vending Service from the following alphabetical list of the accounts at April 30: Accounts receivable \1 0,000 Accounts payable 18,000 Building 28,000 Cash 10,000 Notes payable 47,000 Office equipment 12,000 Stockholders' equity ? Trucks 55,000

When expenses exceed revenues,the resulting change in equity is called:

Match each of the following terms with the most appropriate definition. -A financial ratio stated as income divided by assets invested.

Rent expense appears on which of the following statements?

Match the following terms with the appropriate definition. -Statement of retained earnings.

Match the following terms with the appropriate definition. -Events

The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.

Stockholder investments are increases in equity from a company's earnings activities.

Contessa Company collected $42,000 cash on its accounts receivable.The effects of this transaction as reflected in the accounting equation are:

The four basic financial statements include the balance sheet,income statement,statement of retained earnings,and statement of cash flows.

Accounting is an information and measurement system that identifies,records,and communicates relevant,reliable,and comparable information about an organization's business activities.

The balance sheet shows a company's net income or loss due to earnings activities over a period of time.

Assets created by selling goods and services on credit are:

The going concern assumption:

The income statement shows the financial position of a business on a specific date.

A company reported total equity of $145,000 at the beginning of the year.The company reported $210,000 in revenues and $165,000 in expenses for the year.There were no stockholder investments or dividends during the year.Liabilities at the end of the year totaled $92,000.What are the total assets of the company at the end of the year?

Match each of the following terms with the most appropriate definition. -The uncertainty about the return to be earned.

The term ________ refers to a liability that promises a future outflow of resources.

The basic financial statements include all of the following except:

Match each of the following terms with the most appropriate definition. -Decreases in equity from costs of providing products or services to customers.