Exam 1: Accounting As a Form of Communication

The primary objective of external auditors is to provide assurance to stockholders and other users that the statements are fairly presented.

The amount of earnings distributed to stockholders can be found in the income statement.

Which one of the following financial statements reports an entity's financial position at a specific date?

The three types of business activities in which all corporations engage are _______________________,______________________,and _____________________.

The costs of doing business through the sale of goods and services are called

The term used to refer to an asset's original cost is "historical cost."

Develop an ethical dilemma scenario that an accountant may face and give examples of key elements (listed below)that should be considered when analyzing the decision: 1.Those who may benefit or be harmed 2.What potential benefits or harm could result from the situation 3.The rights or claims violated 4.The specific interests in conflict 5.The responsibilities and obligations

At December 31,2014,the accounting records of Whole Foods Corporation contain the following: If Cash is $26,000,what is the December 31,2014 capital stock balance?

Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $900,000 and its owners' equity remained the same during the year,what was the amount of its total liabilities at the end of the year?

Which the following organizations is primarily responsible for establishing GAAP today?

Which one of the following is a correct expression of the accounting equation?

Someone to whom a company has a debt is known as an investor.

The balance sheet is a statement that summarizes revenues and expenses for a period.

Classify the following items according to the financial statement on which each belongs,either the income statement (IS)or the balance sheet (BS).Also indicate whether each is a revenue (R),expense (E),asset (A),liability (L),or owners' equity (OE)item.

Taryn Corporation The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2014: Read the information for Taryn Corporation.Determine the following amounts for Taryn Corporation.

Which of the following invests funds into a business and is considered an owner?

In 2002,Congress passed the ________________ Act to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals.

Which one of the following statements is true concerning assets?

An expense is an inflow of assets resulting from the sale of goods and services.

The Trenton Corporation began 2014 with $390,000 in assets,$140,000 in liabilities,and $170,000 of retained earnings.Net income for the year was $120,000,and dividends of $110,000 were declared and paid.