Exam 1: Accounting As a Form of Communication

Meredith Corporation is in the business of providing dog and cat grooming services to customers within the city of New York.The following information concerning financial activities during 2014 is available at December 31,2014:

Why is the time period assumption required?

Below are several accounts from Costello Company's accounting records.Answer the questions that follow.

_____________ is the type of accounting used by nonbusiness entities.

Which of the following best describes the term "retained earnings"?

Which one of the following events involves a liability for a business?

Presented below are condensed data from the financial statements of Gallo Factory for 2014 and 2013.The figures are expressed in thousands.Use this information to answer the questions that follow. Required: Based on the information provided,is Gallo Factory considered a business or non-business entity? How do you know by examining the financial statements?

Cerrato Company has assets of $350,000,liabilities of $130,000,and retained earnings of $180,000.How much is total owners' equity?

The following items are available from the records of Ramos Corporation at the end of its fiscal year,June 30,2014: Required (1)Prepare a balance sheet. (2)For each non-balance-sheet item,indicate where it should appear.

The private sector group with authority to set accounting standards is the __________________________________________________.

The natural progression in items from one statement to another and preparation of financial statements is best represented by the following order:

Financial accounting is the branch of accounting concerned with communication with internal management.

Which of the following is a five-member body that has the authority from Congress to set standards for conducting audits?

The reliability of the information in a company's financial statements is the responsibility of which of the following?

A balance sheet provides information at one specific point in time,while the other basic financial statements provide information on activities that occur over a period of time.

A company in the process of liquidation meets the requirements under the going concern assumption.

Gym Corporation reported the following information at December 31,2014: A)Calculate Gym Corporation's total assets. B)Calculate Gym Corporations' net income for 2014. C)Calculate Gym Corporation's total stockholders' equity at the end of 2014.

List the names of three companies with which you are familiar that are manufacturers or producers.Also list the names of three companies that are retailers.Finally,provide the names of three service providers.

The Internal Revenue Service (IRS)is an external user that has the authority of the law to obtain certain accounting information.

A liability is a future economic benefit to a business.