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Exam 1: Introduction to Accounting and Business

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Question 81

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Krammer Company has liabilities equal to one fourth of the total assets. Krammer's owner's equity is $45,000. Using the accounting equation, what is the amount of liabilities for Krammer?

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Assets = Liabilities...

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Question 82

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The Austin Land Company sold land for $85,000 in cash. The land was originally purchased for $65,000. At the time of the sale, $40,000 was still owed to Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation.

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Total assets decrease $20,000 (Cash incr...

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Question 83

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Proper ethical conduct implies that you only consider what's in your best interest.

An income statement is a summary of the revenues and expenses of a business as of a specific date.

Managerial accountants would be responsible for providing the following information:

Which of the following is a manufacturing business?

Revenue is earned only when money is received.

The financial statements of a proprietorship should include the owner's personal assets and liabilities.

Net income and net profit do mean the same thing.

Liabilities are reported on the

Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation?

The financial statement that presents a summary of the revenues and expenses of a business for a specific period of time, such as a month or year, is called a(n)

Which of the items below is not a business entity?

The accounting equation may be expressed as

Use the accounting equation to answer each of the independent questions below: a. At the beginning of the year Norton Company assets were $75,000 and its owner's equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the owner's equity at the end of the year? b. At the beginning of the year Turpin Industries had liabilities of $44,000 and owner's equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the owner's equity at the end of the year?

Within the United States, the dominant body in the primary development of accounting principles is the

The principal financial statements of a proprietorship are the income statement, statement of owner's equity, and the balance sheet.

The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their clients for what period after their last audit of the client?

Transactions affecting owner's equity include

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.