Exam 1: Accounting in Business

Flitter reported net income of $17,500 for the past year.At the beginning of the year the company had $200,000 in assets and $50,000 in liabilities.By the end of the year,assets had increased to $300,000 and liabilities were $75,000.Calculate its return on assets:

Match the following terms with the appropriate definition. -Generally accepted accounting principles

A company's balance sheet shows: cash $22,000,accounts receivable $16,000,office equipment $50,000,and accounts payable $17,000.What is the amount of stockholders' equity?

Prepare a December 31 balance sheet in proper form for Cane Property Management using the following accounts and amounts: Commissions earned \ 40,000 Accounts payable 3,500 Accounts receivable 5,000 Common stock 100,000 Retained earnings 4,500 Office equipment 10,000 Advertising expense 3,200 Cash 7,500 Land 35,000 Note payable 50,000 Office supplies 1,500 Salaries expense 12,000 Salaries payable 1,000 Building 100,000

Investing activities are the means an organization uses to pay for resources like land,buildings,and equipment to carry out its plans.

Match the following terms with the appropriate definition. -Objectivity principle

The ________ assumption assumes that a business will continue operating indefinitely instead of being closed or sold.

Which of the following accounts is not included in the calculation of net income?

The three common forms of business ownership include sole proprietorship,partnership,and corporation.

An example of an operating activity is:

Identify the users and uses of accounting information.