Exam 1: Accounting in Business

On June 30 of the current year, the assets and liabilities of Phoenix, Inc. are as follows: Cash $20,500; Accounts Receivable, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July 1 of the current year?

The income statement reports all of the following except:

If the assets of a business increased $89,000 during a period of time and its liabilities increased $67,000 during the same period, equity in the business must have:

An income statement reports on investing and financing activities.

In accounting, the rule that requires that assets, services, and liabilities be recorded initially at the cash or cash-equivalent value of what was given up or of the item received is called _____________________________.

Rent expense that is paid with cash appears on which of the following statements?

The three common forms of business ownership include sole proprietorship, partnership, and non-profit.

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

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

The accounting equation implies that: Assets + Liabilities = Equity.

The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner, net income (or net loss); withdrawals; and the ending balance, is the:

Annie's Attic has the following account balances for the dates given: Also, its net income, for September 1 through September 30 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both September 1 and September 30.

The financial statement that identifies where a company's cash came from and where it went during the period is the:

The assumption that requires that a business be accounted for separately from its owners is the __________________ assumption.

General accounting principles arise from long-used accounting practices.

Identify several opportunities in accounting and its related fields.

An example of an investing activity is:

Net Income:

Flash has beginning equity of $257,000, net income of $51,000, withdrawals of $40,000 and investments by owners of $6,000. Its ending equity is:

A sole proprietorship is a business owned by one or more persons.