FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: An Introduction to Accounting

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 31

True/False

Review LaterAdd Note

Review Later

A business and the person who owns the business are separate reporting entities.

A) True
B) False

Correct Answer

verified

Show Answer

Question 32

Multiple Choice

Review LaterAdd Note

Review Later

Tandem Company acquired $23,000 by issuing common stock. Which of the following choices accurately reflects how this event affects the company's financial statements?

A)

B)

C)

D)

E) A) and D)
F) C) and D)

Correct Answer

verified

Show Answer

Question 33

Short Answer

Review LaterAdd Note

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $\text { Increase }=\mathrm{I} \quad \text { Decrease }=\mathrm{D} \quad \text { No Effect }=\mathrm{N}$ Walsh Co. paid a $50,000 cash dividend to its owners. $\begin{array} { l }\begin{array}{|l|l|l|l|l|l|l|}\text { Assets }&\text {Liabilities}&\text { Equity }&\text {Revenues }&\text {Expenses }&\text { Net Income }&\text { Cash }\\\hline & & & & & & \\\hline\end{array}\end{array}$

Yi Company began operations on January 1, 2013. During 2013, the company engaged in the following cash transactions: 1) issued stock for $40,000 2) borrowed $25,000 from its bank 3) provided consulting services for $38,000 4) paid back $15,000 of the bank loan 5) paid rent expense for $9,000 6) purchased equipment costing $12,000 7) paid $3,000 dividends to stockholders 8) paid employees' salaries, $21,000 What is Yi's net cash flow from operating activities?

Dividends paid by a company are shown on the

Jacks Company had a net increase in cash from operating activities of $8,000 and a net decrease in cash from financing activities of $1,000. If the beginning and ending cash balances for the company were $3,000 and $11,000, then net cash change from investing activities was:

Indicate whether each of the following statements about liabilities is true or false. _______ a) A net loss on the income statement decreases liabilities. _______ b) The acquisition of a bank loan increases both assets and liabilities. _______ c) The accounting equation requires that liabilities be equal to equity. _______ d) The amount of a company's liabilities is equal to (assets - equity). _______ e) Liabilities are reported on the statement of cash flows of a business.

Liabilities are shown on the

Vantage Corporation invested $800 cash in Tandem Company stock. Which of the following describes the effects of this transaction on Vantage Corporation's books? $\begin{array} { | l | l | l | l | l | l | l } \hline \text { Assets } = & \text { Liab. } + & \text { Equity } & \text { Rev. } - & \text { Exp. } = & \text { Net Inc. } & \text { Cash Flow } \\\hline\end{array}$

A company mistakenly recorded a cash purchase of land as an expense. As a result of this error

What financial statement elements are reported on a balance sheet?

Callahan Company earned $1,500 of cash revenue, paid $1,000 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?

Grant Company purchased a delivery van for cash. The cash flow from this event should be shown on the statement of cash flows as

The Financial Accounting Standards Board is an agency of the US government with authority for establishing accounting standards for businesses in the US.

As of December 31, 2012, Montross Company had $400 cash. During 2013, Montross earned $1,200 of cash revenue and paid $800 of cash expenses. The amount of cash shown on the 2013 balance sheet would be

Ramon Company experienced the following events during 2012: 1. Acquired $50,000 cash by issuing common stock 2. Borrowed $15,000 cash from a creditor 3. Provided services to customers for $33,000 cash 4. Paid $27,000 cash for operating expenses 5. Paid a cash dividend of $1,500 to stockholders 6. Purchased land with cash, $25,000 Required: a) Show how each of these events affects the accounting equation. Show amounts and increases or decreases, using + for increases and - for decreases and NA for no effect. The first event is done as an example. b) Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.

Which of the following items would appear in the cash flow from the financing activities section of a statement of cash flows?

Financial accounting information is usually more detailed than managerial accounting information.

Retained earnings reduces a company's commitment to use its assets for the benefit of its stockholders.

Ramon Company experienced the following events during 2012: 1. Acquired $50,000 cash by issuing common stock 2. Borrowed $15,000 cash from a creditor 3. Provided services to customers for $33,000 cash 4. Paid $27,000 cash for operating expenses 5. Paid a cash dividend of $1,500 to stockholders 6. Purchased land with cash, $25,000 Required: a) Show how each of these events affects the accounting equation. Show amounts and increases or decreases, using + for increases and - for decreases and NA for no effect. The first event is done as an example. b) Calculate the total amount of assets, liabilities, common stock, and retained earnings at the end of the period.