Questions and Answers of Financial Accounting For Managers

This information is for Downing Company for the year ended December 31, 2022.Cash received from revenues from customers $930,000 Cash received for issuance of common stock 420,000 Cash paid for new
Windsor Service had the following financial information at the end of 2022.Instructions:Prepare a 2022 income statement, 2022 retained earnings statement, and a 12/31/22 balance sheet for Windsor
The total assets and liabilities of Browning Company at January 1 and December 31, 2022 are presented below.January 1 December 31 Assets $95,000 $140,000 Liabilities 30,000 36,000 Instructions:1.
Rachel Bells Havens is a friend of yours from high school. She decided to become a beautician after leaving high school, rather than to attend college. She recently opened her own shop, and has
Joanna Newsom owns and operates Joanna's Burgers, a small fast food store, located at the edge of City College campus in Newton, Ohio. After several very profitable years, Joanna's Burgers began to
The information needs of a specific user of financial accounting information depends upon the kinds of decisions that user makes. Identify the major users of accounting information and discuss what
Your friend, Angela, made this comment:My major is biology and I plan to research for cures for major illnesses. Thus, I have no need to study accounting.What is your response to Angela?
The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major
Match the items below by entering the appropriate code letter in the space provided. A. CPA B. Budgeting C. SEC D. Proprietorship E. Ecpnomic entity assumption F. Corporation G. Assets H. Equities 1.
The ________________ reports the assets, liabilities, and stockholders' equity of a business enterprise at a specific date.
Dividends ________________ stockholders' equity but are not expenses.
The residual claim on total assets of a business is known as ________________ and is equal to total assets minus total liabilities.
The _________________ assumption requires that the activities of an entity be kept separate from the activities of its owner.
The ________________ principle states that assets should be recorded at the value exchanged at the time the asset is acquired.
A common set of standards that provides guidelines to accountants and indicates how to report economic events is called _________________.
Accountants who are employees of business enterprises are referred to as ________________ accountants.
The three major services rendered by a certified public accountant are ______________, ________________, and management ________________.
The recording of economic events is called ______________, and is just one part of the _______________ process.
Accounting is an information system that identifies, _____________, and _____________ the economic events of an organization.
Presented below are balance sheet items for Black Angel Company at December 31, 2022.Accounts payable $35,000 Accounts receivable 36,000 Cash 17,000 Equipment 77,000 Common stock 45,000 Notes payable
At September 1, the balance sheet accounts for Stanley’s Restaurant were as follows:The following transactions occurred during the next two days:The company issued additional shares of stock for
Maria Queen was reviewing her business activities at the end of the year (2022) and decided to prepare a Retained Earnings Statement. At the beginning of the year, her assets were $700,000 and her
Indicate in the space provided by each item whether it would appear on the Income Statement(IS), Balance Sheet (BS), or Retained Earnings Statement (RE): a. Service Revenue g- Accounts Receivable b.
One item is omitted in each of the following summaries of balance sheet and income statement data for three different sole corporations, X, Y, and Z. Determine the amounts of the missing items,
Listed below in alphabetical order are the balance sheet items of Rock Plaza Company at December 31, 2022. Prepare a balance sheet and include a complete heading.Accounts Payable $ 24,000 Accounts
Indicate whether the following items would appear on the balance sheet (BS), income statement(IS), or retained earnings statement (RE).1. Advertising expense 2. Accounts receivable 3. Dividends 4.
Prepare an income statement, a retained earnings statement, and a balance sheet for the accupuncture practice of Golda Bear, from the items listed below for the month of September, 2022.Retained
Presented below is information related to Anthony Scalici Company.Retained earnings, January 1, 2022 $ 21,000 Service revenue—2022 320,000 Total expenses—2022 213,000 Assets, January 1, 2022
Van Occupanther is the bookkeeper for Roscoe Company. Van has been trying to get the balance sheet of Roscoe Company to balance. Roscoe’s balance sheet is as follows.Instructions Prepare a correct
The following information relates to Bonnie Billy Co. for the year 2022.Instructions After analyzing the data, prepare an income statement and a retained earnings statement for the year ending
An analysis of the transactions made by Cookie Mountain Legal, a law firm, for the month of July is shown below. Each increase and decrease in retained earnings is explained.Instructions Prepare a
An analysis of the transactions made by Cookie Mountain Legal, a law firm, for the month of July is shown below. Each increase and decrease in stockholders' equity is explained.Instructions (a)
There are ten transactions listed below. Match the transactions that have the identical effect on the accounting equation. You should end up with 5 matches.a. Receive cash from customers on accountb.
A service company shows five transactions summarized below. The effect of each transaction on the accounting equation is shown, and also the new balance of each item in the equation. For each
Selected transactions for Parton Company are listed below. List the number of the transaction and then describe the effect of each transaction on assets, liabilities, and stockholders' equity.Sample:
The following transactions represent part of the activities of Bloc Party Company for the first month of its existence. Indicate the effect of each transaction upon the total assets of the business
For each of the following, describe a transaction that will have the stated effect on the elements of the accounting equation.(a) Increase one asset and decrease another asset.(b) Increase an asset
Neko Case decides to open a cleaning and laundry service near the local college campus that will operate as a corporation. Analyze the following transactions for the month of June in terms of their
For each of the following, indicate whether the transaction increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and stockholders' equity using the following format.Assets =
Analyze the transactions of a business organized as a corporation described below and indicate their effect on the basic accounting equation. Use a plus sign (+) to indicate an increase and a minus
Presented below is a balance sheet for Jim Henson Yard Service at December 31, 2022.The following additional data are available for the year which began on January 1: All expenses (excluding supplies
For each of the following, indicate whether the transaction affects revenue (R), expense (E), dividends (D), common stock (CS), or no effect on stockholders' equity (NOE).1. Made an investment to
The Constantine Company had the following assets and liabilities on the dates indicated.December 31 Total Assets Total Liabilities 2020 $480,000 $250,000 2021 $460,000 $220,000 2022 $590,000 $300,000
An analysis of the transactions made by White Stripes & Co., a law firm, for the month of July is shown below. Each increase and decrease in stockholders' equity is explained.Instructions (a)
Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2022, Holly Enterprises and Cat Stevens.Instructions
Wilco Legal Eagles Company entered into the following transactions during March 2022.1. Purchased office equipment for $23,000 from Business Equipment, Inc. on account 2. Paid $3,000 cash for March
Selected transactions for Mountain Goats Tree Service are listed below.1. Sold common stock for cash to start business 2. Paid for monthly advertising 3. Purchased supplies on account 4. Billed
From the following list of selected accounts taken from the records of Ward Homeopathic Center, identify those that would appear on the balance sheet.a. Common Stockf. Accounts Payableb. Service
Compute the missing amount in each category of the accounting equation. Assets (a) (b) $319,000 Liabilities $ ? $223,000 $ 79,000 (c) $ ? $233,000 Stockholders' Equity $143,000 $ ? $325,000
At the beginning of 2022, Hold Steady Company had total assets of $520,000 and total liabilities of $250,000. Answer each of the following questions.1. If total assets increased $60,000 and
On June 1, 2022, Secretly Canadian Company prepared a balance sheet that shows the following:Assets (no cash) .............................................................. $100,000 Liabilities
Magnolia Electric Car Cleaning has the following accounts:Equipment Notes Payable Accounts Payable Common Stock Cash Dividends Supplies Accounts Receivable Identify which items are (1) Assets(2)
At the beginning of the year, Shaolin Company had total assets of $520,000 and total liabilities of$210,000. Answer the following questions viewing each situation as being independent of the
For the items listed below, fill in the appropriate code letter to indicate whether the item is an asset, liability, or stockholders' equity item. Code Asset Liability A L Stockholders' Equity SE 1.
Below is a list of important abbreviations widely used in business. For each abbreviation, give the full designation.1. CPA _____________________________________________ 2. IRS
Listed below in alphabetical order are the balance sheet items of Madjack Company at December 31, 2022. Prepare a balance sheet and include a complete heading.Accounts payable $ 21,000 Accounts
Use the following information to calculate for the year ended December 31, 2022 (a) net income,(b) ending retained earnings, and (c) total assets. Supplies $ 3,000 Operating expenses 12,000 Revenues
Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS).1. Cash 2. Service Revenue 3. Notes Payable 4. Interest Expense 5. Accounts Receivable
Balance sheet amounts as of December 31, 2022 for Matt Pond's Tutoring Service are listed below. Prepare a balance sheet in good form.Accounts Payable $ 400 Accounts Receivable 1,000 Cash 300 Common
Identify the impact on the accounting equation of each of the following transactions.1. Purchase office supplies on account 2. Paid secretary weekly salary 3. Purchased office furniture for cash 4.
Classify each of these items as an asset (A), liability (L), or stockholders' equity (SE)._____ 1. Accounts receivable _____ 2. Accounts payable _____ 3. Common stock _____ 4. Supplies _____
Determine the missing items. Assets Liabilities + Stockholders' Equity $85,000 $52,000 (a) (b) $28,000 $34,000 $84,000 (c) $50,000
Use the accounting equation to answer the following questions.1. Picaresque Sails Co. has total assets of $140,000 and total liabilities of $45,000. What is stockholders' equity?2. The Natenal Fun
Indicate which of these items is an asset (A), liability (L) or stockholders’ equity (SE) account._______ (1) Supplies _______ (2) Dividends _______ (3) Buildings _______ (4) Notes Payable _______
Match the following terms and definitions.a. Accounts receivablec. Accounts payableb. Creditord. Notes payable _______ (1) Amounts due from customers _______ (2) Amounts owed to suppliers for goods
Match the following external users of financial accounting information with the type of decision that user will make with the information.a. Creditorb. Investorc. Regulatory Agency d Internal Revenue
The conceptual framework that underlies IFRSa. is very similar to that used to develop GAAP.b. does not define assets or liabilities.c. does not define equity.d. does not define income or expenses.
Proprietorships, partnerships, and corporationsa. are the three most common forms of business organizations in the U.S.b. are the three most common forms of business organizations internationally.c.
GAAP, compared to IFRS, tends to be morea. simple in accounting requirements.b. rules-based.c. principles-based.d. simple in disclosure requirements.
IFRS, compared to GAAP, tends to be morea. detailed.b. rules-based.c. principles-based.d. full of disclosure requirements.
Financial accounting ethics violations area. not a problem in the U.S. or internationally.b. much more common in the U.S. than internationally.c. much more common internationally than in the U.S.d. a
The concern about international companies adopting SOX-type standards centers ona. cost-benefit analysis.b. ethics issues.c. the governing authorities.d. comparability.
The internal control standards applicable to Sarbanes-Oxley apply toa. all U.S. and international companies.b. U.S. and international companies listed on U.S. exchanges.c. International companies
The United States and the international standard-setting environment are primarily driven by meeting the needs ofa. investors and creditors.b. tax authorities.c. central government planners.d.
U.S. standards are developed by thea. IFRS.b. GAAP.c. IASB.d. FASB.
International standards are developed by thea. IFRS.b. GAAP.c. IASB.d. FASB.
U.S. standards are referred to asa. IFRS.b. GAAP.c. IASB.d. FASB.
International standards are referred to asa. IFRS.b. GAAP.c. IASB.d. FASB.
Which of the following is not a reason international accounting standards are needed?a. Multinational corporationsb. Financial marketsc. Information technologyd. All of the above are reasons
Which of the following is not a reason international accounting standards are needed?a. Multinational corporationsb. Mergers and acquisitionsc. Information technologyd. All of these answer choices
The financial statement that summarizes the financial position of a company is thea. income statement.b. balance sheet.c. operating statement.d. retained earnings statement.
Druganaut Company buys a $21,000 van on credit. The transaction will affect thea. income statement only.b. balance sheet only.c. income statement and retained earnings statement only.d. income
Matador Company purchases $1,300 of equipment from Danger Mouse Inc. for cash.The effect on the basic accounting equation of Matador Company isa. an increase in assets and liabilities.b. a decrease
Bright Eyes Downtown Diner received a bill of $600 from the Jronand Wine Advertising Agency. The owner, A. A. Bondy, is postponing payment of the bill until a later date. The effect on specific items
A net loss will result during a time period whena. assets exceed liabilities.b. assets exceed stockholders' equity.c. expenses exceed revenues.d. revenues exceed expenses.
A proprietorship is a businessa. owned by one person.b. owned by two or more persons.c. organized as a separate legal entity under state corporation law.d. owned by a governmental agency.
The primary accounting standard-setting body in the United States is thea. Financial Accounting Standards Board.b. International Accounting Standards Board.c. Internal Revenue Service.d. Securities
The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) the FASB SECa. no nob. yes noc. no yesd. yes yes
Internal users of accounting information include all of the following excepta. company officers.b. investors.c. marketing managers.d. production supervisors.
Auditing isa. the examination of financial statements by a CPA in order to express an opinion on their fairness.b. a part of accounting that involves only the recording of economic events.c. an area
Keeping a systematic, chronological diary of events that are measured in dollars and cents is calleda. communicating.b. identifying.c. processing.d. recording.
The first part of the accounting process isa. communicating.b. identifying.c. processing.
Which of the following is not part of the accounting process?a. Recordingb. Identifyingc. Financial decision-makingd. Communicating
A private accountant can perform many activities in a business organization but would not work ina. budgeting.b. accounting information systems.c. external auditing.d. tax accounting.
Preparing tax returns and engaging in tax planning is performed bya. public accountants only.b. private accountants only.c. both public and private accountants.d. IRS accountants only.
Which list below best describes the major services performed by public accountants?a. Bookkeeping, mergers, budgets.b. Employee training, auditing, bookkeeping.c. Auditing, taxation, management
All of the following are services offered by public accountants excepta. budgeting.b. auditing.c. tax planning.d. consulting.
At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, common stock of $10,000 was issued and the company posted a net loss of$4,000. If stockholders' equity
At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, common stock of $4,000 was issued and the company earned net income of$14,000. If stockholders' equity
At October 1, Arcade Fire Enterprises reported stockholders' equity of $72,000. During October, no stock was issued and the company posted a net loss of $8,000. If stockholders' equity at October 31

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