Exam 1: Accounting Principles and the Financial Statements

Cash is another term for owner's equity.

At the beginning of the year,Shannon Company's assets were $150,000 and its owner's equity was $100,000.During the year,assets decreased $30,000 and liabilities increased $15,000.What was the owner's equity at the end of the year?

Which of the following assets could be described as nonphysical?

The best definition of assets is the:

The board of directors appoints the audit committee,which in turn performs an independent audit of the company's records.

Which four types of transactions affect owner's equity,and how do they affect it?

Use this information to answer the following question. Here is the balance sheet for Costello Container Company: If the balance in the Cash account were used to buy more equipment,then the total assets would

Which of the following is an example of an investing activity?

The net income figure appears in all the following financial statements except the

If a company has suffered only net losses since its inception,the owner's equity account will always have a negative balance.

Which of the following is a regulatory agency?

The communication stage of accounting is accomplished by

Owner's equity equals assets minus liabilities.

Creditors' equities is another term for liabilities.

Net assets equal owner's equity.

Which of the following financial statements is concerned with the enterprise at a point in time?

The expenses incurred by an accounting firm would appear on its balance sheet.

The Internal Revenue Service is responsible for issuing accounting standards for state and local governments.

The statement of cash flows discloses significant events related to the operating,investing,and financing activities of a business.

The correct order of the three stages of accounting is