Exam 1: Accounting in Business

The accounting equation for Long Company shows an increase in its assets and an increase in its liabilities. Which of the following transactions could have caused that effect?

Cash investments by owners are listed on which of the following statements?

Assets are the resources a company owns or controls that are expected to yield future benefits.

Which of the following accounting principles require that all goods and services purchased be recorded at actual cost?

Risk is:

If a company purchases equipment costing $4,500 on credit, the effect on the accounting equation would be:

Cage Company had income of $350 million and average invested assets of $2,000 million. Its return on assets (ROA) is:

The ________ assumption states that transactions and events are expressed in money units.

Opportunities in accounting include auditing, consulting, market research, and tax planning.

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

Ethical behavior requires that:

There are three major types of business activities. ________ activities are the means organizations use to pay for resources such as land, building, and equipment to carry out plans.

Jet Styling has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows. a. Beginning cash balance \ 3,200 b. Cash investment by owner 15,000 c. Cash payment toward long-term loan 1,000 d. Cash payment of rent 1,800 e. Purchased equipment for cash 7,500 f. Purchased store supplies for cash 1,500 g. Cash collected from customers 7,750 h. Cash withdrawal by owner 2,000 i. Cash payment of wages 4,000

A financial statement providing information that helps users understand a company's financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):

The business entity assumption:

Net income is sometimes called earnings or profit.

The first section of the income statement reports cash flows from operating activities.

Congress passed the ________ to help curb financial abuses at companies that issue their stock to the public.

Accounts payable appear on which of the following statements?

Technology: