Exam 1: Accounting in Business

Prepare a December 31 balance sheet in proper form for Smokey River Supplies from the following list of the accounts: Cash. \1 0,000 Accounts receivable 8,000 Supplies 12,000 Equipment. 35,000 Land. 18,000 Accounts payable. 13,000 Notes payable. 41,000 L. Marks, Capital 29,000

All of the following regarding a Certified Public Accountant are true except:

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

An example of a financing activity is:

General accounting principles stem from long-used accounting practices.

Define risk and return and discuss the relation between them.

Describe the three types of activities reported on the statement of cash flows.

The independent group that is attempting to harmonize accounting practices of different countries is the:

From the information given below, prepare a November income statement, a November statement ^{of owner's equity, and a November 30 balance sheet}. ^{On November 1 of the current year, Victoria} Garza began Garza Décor with an initial investment of $50,000 cash. On November 30, her records showed the following (alphabetically arranged) items and amounts. Accounts payable. \ 12,000 Oftice furnishings. \ 40,000 Accounts receivable. 19,000 Owner's withdrawals 6,000 Cash 21,200 Rent expense 9,600 Fees earned. 34,000 Salaries expense. 4,200 Notes payable 4,250 Telephone expense 250

If assets are $99,000 and liabilities are $32,000, then equity equals:

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

The description of the relation between a company's assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the:

If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year, then the change in equity of the company during the year must have been:

________, which is one part of accounting, is the recording of transactions and events, either manually or electronically.

Return on assets is often stated in ratio form as the amount of average total assets divided by income.

What is the purpose of return on assets as an analytical tool?

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

The income statement reports all of the following except:

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

There are three major types of business activities. ________ activities involve using resources to research, develop, purchase, produce, distribute, and market products and services and receiving amounts from selling products and services.