Exam 1: The Role of Accounting in Business

A limited liability company combines attributes of a partnership and a corporation.

Following are the financial statement data for Yevin Temporary Services at December 31, 2011. Prepare Yevin's income statement. \ 610 Accounts Payable 600 Accounts Receivable 300 Cash 625 CommonStock 100 Dividends 60 Insurance Expense 1,000 Office Equipment 300 Retained Earnings, January 1, 201 550 Salaries Expense 35 Notes Payable 1,500 Service Reverue 20 Inventary 40 Supplies Expense

A low-cost emphasis strives to provide:

The resources a business owns are called:

Managers are evaluated primarily on the business's:

Due to various fraudulent business practices and accounting coverups in the early 2000s, Congress enacted the Sarbanes-Oxley Act of 2002. The act was responsible for establishing a new oversight board for public accountants called the:

The balance sheet represents the accounting equation.

A business stakeholder has an interest in the economic performance of a business.

When a business borrows money, it incurs a(n):

Creditors have preference to assets behind stockholders if a business fails.

Which principle determines the amount initially entered into the records for purchases?

Review Coke-Cola's financial statements and answer the following questions: (1) How are Coke's sumbers reported (in what denomination)? (2) What is Coke's net operating revenue for 2008? (3) What is Coke's cost of goods sold for 2008 ? (4) What is Coke's net income 2008? (5) What is Coke's percent of interest expense to net operating 1evenue on its 2008 income statement? (6) What is Coke's percent of increase in net operating revemue from 2007 to 2008 ?

Match the following items with the appropriate financial statement: a. Income statement b. Balance sheet c. Retained earnings statement d. Statement of cash flows

A summary of the cash receipts and cash payments for a specific period of time is a(n):

_____ is the increase in assets from selling products and services.

Accounting is thought to be the "language of business" because business information is communicated to stakeholders.

Fill in the missing amounts of the following balance sheet:

Describe business stakeholders. State the classification of business stakeholders.

The popularity of the sole proprietorship is due to the ease and low cost of organizing.

Gilbert, Inc. had the following account balances at September 30, 2010. What is Gilbert's net income for the month of September? 5,000 Accounts Payable 10,000 Capital Stock 14,300 Cash 15,400 Equipment 54,400 Fees Earned 18,200 Miscellaneous Expense 4,150 Rent Expense 6,550 Retained Earnings 13,900 Wages Expense