Accounting 205-Bonus Questions Fall Semester 2019 Chapters 1, 2, and 3: What are the three basic forms of business organizations? 1. What are the three main types of business activity? Give examples of each activity. Why would a bank want to monitor the dividend payment practices of the corporations to which it lends money? Define current assets. What basis is used for ordering individual items within the current assets 2. 3. 4 section? 5. What are generally accepted accounting principles (GAAP)? What body provides authoritative support for GAAP? What is the primary objective of financial reporting? Indicate how each one of these business transaction affects the basic accounting equation: a. Paid cash for janitorial services. 6. 7. Purchased equipment for cash. Issued common stock to investors in exchange for cash. Paid an account payable in full. bi c. d. Indicate whether each account is an asset, a liability, or a stockholders' equity account, and whether it would have a normal debit or credit balance. Accounts Receivable. 8. a. b. Accounts Payable. Equipment. C d Dividends. e. Supplies. Journalize these accounting transactions 9. Stockholders invested $12,000 in the business in exchange for common stock Insurance of $800 is paid for the year. Supplies of $1,800 are purchased on account al b. c. d. Cash of $7,500 is received for services rendered. Accounting 205-Bonus Questions Fall Semester 2019 Chapters 1, 2, and 3: What are the three basic forms of business organizations? 1. What are the three main types of business activity? Give examples of each activity. Why would a bank want to monitor the dividend payment practices of the corporations to which it lends money? Define current assets. What basis is used for ordering individual items within the current assets 2. 3. 4 section? 5. What are generally accepted accounting principles (GAAP)? What body provides authoritative support for GAAP? What is the primary objective of financial reporting? Indicate how each one of these business transaction affects the basic accounting equation: a. Paid cash for janitorial services. 6. 7. Purchased equipment for cash. Issued common stock to investors in exchange for cash. Paid an account payable in full. bi c. d. Indicate whether each account is an asset, a liability, or a stockholders' equity account, and whether it would have a normal debit or credit balance. Accounts Receivable. 8. a. b. Accounts Payable. Equipment. C d Dividends. e. Supplies. Journalize these accounting transactions 9. Stockholders invested $12,000 in the business in exchange for common stock Insurance of $800 is paid for the year. Supplies of $1,800 are purchased on account al b. c. d. Cash of $7,500 is received for services rendered
