a. opportunity 6.Which firm reports the highest sales and income? Each of the following are areas of accounting opportunities except: Regulators Regulators Learning Objective 01-C3: Explain why ethics are crucial to accounting. True or false: By definition, owner investments increase equity and are called stock issuances. Preparing and entering a list of checks issued. b. a decrease of $80,000 c. general accounting principle The remainder of the bill went on account. 8.Purchasing manager, 1. On 8/1, supplies costing $500 were purchased on credit. _____ includes opportunities in general accounting, cost accounting and internal auditing. d. stock issuances \end{bmatrix}} Advertisement Internal users of accounting information ___________ in managing and operating an organization. \end{array} $64,000=$22,000+$32,000$0+_________ $14,000 and increasing Cash, $400. How will this transaction affect the accounting equation? 3. b. d. IFRS, The organization that is responsible for issuing International Financial Reporting Standards is the: She recalls that the stock is currently trading at $15 per share. a. cash was received from providing services to a customer The correct definition of a balance sheet includes which of the following statements? Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. Consulting revenue - revenues Cost of sales - expenses Jackson's Programming paid its June rent of $500 cash. & 24,561.78\\ Financial accounting Informacion actualizada del Sector Logistico. The business must record this event, which would decrease cash and increase equity on January 31. Jackson would decrease (expenses/cash/revenues) and increase (expenses/equity/revenues) in the accounting equation. 7. e. an increase of $25,000, The business entity assumption: Identify the main sections on a statement of cash flows. To record this transaction on 6/25: Supplies would be increased by $ (1,000/400/600); Cash would be decreased by $ (1,000/400/600) and Accounts Payable would be increased by $ (1,000/400/600). Taxes Payable, Accounts Payable, Wages Payable. c. rationalization, Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or (c) constraint. a. business entity assumption Record this transaction in the accounting equation of the new business by: Russell's Consulting Services Company provided $1,000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. True or False: The date line of a balance sheet depicts a specific day and not a period of time. Wages Payable 21. Managerial b. Accounting information is used to do all of the following except: MULTIPLE . Documentation and verification of internal controls. Internal events b. D. Collect, summarize, and communicate information. External users of accounting information are ____________ in running the organization. Equity remains unchanged Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. Final totals in a financial statement are ______ underlined. 2.Should we make a five-year loan to that business? Salaries expense will be increased. Boaz's net income is $5 million. Resources with expected future benefits. b. Investments: Increase equity and are assets an owner puts into the business. \text { Selling, General, and Administrative Expenses } & \underline{(488,000)} \\ From the following statements, identify the correct definition of equity. c. Cash, accounts receivable, and common stock b. pressure d. expenses - income statement - Materiality is a function of the nature of the item and/or dollar amount, - The benefits of the information disclosed must be greater than the costs of providing the information, Identify the following terms/phrases as either an accounting principle, assumption, or constraint Revenue, expenses and net income The total of everything owned by a business must always equal the total of what the business owes to creditors and owners. Which of the statements correctly represents the accounting equation? c. statement of retained earnings d. going-concern assumption Which of the following statements is/are true regarding the effect of revenues on the equity of a business? b. pressure The fraud triangle consists of three components: (1) Opportunity, (2) Incentive, and (3) Rationalization. As she walks to the meeting room, she considers the fact that she inherited a share of Morrison's stock last year under the terms of her grandfather's will. - Dividends. Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Carl S Warren, James M Reeve, Jonathan E. Duchac. 5.Should we spend additional money for redesign of our product? Identify the broad opportunity areas of accounting (select all that apply) a. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. 4. c. Rent payable Cash flows from financing activities. The FASB conceptual framework consists of all of the following except : a. . B \\ The company name is listed at the top of the heading. The equation applies to all transactions. Russell's Consulting Services Company provided $1,000 of services to the local college and immediately collected $700, but the college wants to pay the rest next month. evenues are the sales of products or services to customers by a business. - decreasing Cash, $200. - Building. Service revenue Place the following ethical decision making steps in the correct order: An employee that has unpaid bills might exhibit the following fraud factor: Identify which of the following statements is correct as to why accounting is important. j. chief audit executive (CAE) A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. The business must record this event, which would decrease cash and decrease equity on January 31. 1). SimplifiedIncomeStatementAmountSales$567,000DepreciationExpense(52,000)Selling,General,andAdministrativeExpenses(488,000)OperatingIncome27,000TaxExpense(8,000)NetIncome$19,000\begin{array}{lr} The accounting equation represents the sum between the equity and the debts of the company that will always give the total assets of the company. f. regulators The concepts and rules that govern financial accounting practice. The equation applies to all transactions. - Expenses - Internal, Identify the following users as either an internal or an external user: His initial investment was $4,000 cash in exchange for common stock. c. FASB Resources with expected future benefits. In October, Sally's wants to make a payment of $200 on this bill. c. going-concern assumption The date line shows a specific date. Melton's Door Company pays rent on the building facilities of $5,000 on May 1. b. accept the assignment because her ownership of a single share of stock worth only $15 obviously would not influence her decisions about the figures set forth in Morrison's reports. Which of the following statements explain how the accounting equation applies to businesses? e. service managers - internal users e. measurement (cost) principle a. opportunity Resources controlled by the business Research and development executive - Internal The recording of transactions and events is called ______. e. paying off a loan, If assets are $300,000 and liabilities are $192,000, then equity equals: c. What is the probability that any three of the outcomes occur (e.g., E1E_1E1 or E2E_2E2 or E4E_4E4 )? Management. c.Goods that enter a foreign trade zone are not subject to tariff until they leave the zone for destinations in the United States. An experiment has four equally likely outcomes: E1,E2,E3E_1, E_2, E_3E1,E2,E3, and E4E_4E4. Investments Dividends cause a(n) (increase/decrease) _______________ in equity and are recorded directly in the (retained earnings/dividends/equity) ________________ account. - Contributed capital. a. Cash dividends - dividends a. Given the accounts below, choose all of the ones that affect equity. Expenses are the costs of providing products and services to customers. k. legislators What is the amount of its equity? Owner investments cause a(n) _____ in equity. Identify the fraud risk factor in each of the following situations: Revenues: increase equity and are the assets earned from a company's earning activities b. cash from operating activities - CF What is the amount of its liabilities? f. net decrease (or increase) in cash 2. From the following statements, select the one that describes the effect of dividends on equity. a. Accounting-related Cash flows from investing, operating and financing activities. a. going-concern assumption Qualitative characteristics a. Identify ethical concerns Analyze options 1. Find the limiting matrix for the indicated standard form. b. cash from operating activities c. human resource managers Accounts receivable, net income, and dividends 4.Should we buy, hold, or sell a company's stock? Note payable - liabilities d. Dividends, beginning retained earnings, ending retained earnings, b. - Elements a. Revenues that increase equity have many forms, such as consulting services and commissions from services. The action of a neurotransmitter is based on the _______________. 7.Production supervisor - Internal Expenses decrease equity. - Cash 6.Creditor A single-ruled line denotes an addition or subtraction and double underlines indicate the final totals. rationalization or attitude, The principle which states that accounting information is based on actual cost is called the. c. borrowing money from a bank Which list of accounts below, identifies only accounts that would appear on a balance sheet. Which of the following statements is correct regarding owner investments? $880,000= _________ +$510,000 c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. All of the following are examples of managerial accounting activities except a. making equipment repair or replacement decisions b. preparing external financial statements in compliance with GAAP c. deciding whether or not to use automation d. deciding whether or not to use automation 2. f. legal expense Which of the following statements describes the effect of expenses on equity? LO 1.2 External users of financial accounting information include all of the . Each branch has come about thanks to technological, economic or industrial developments. 3.Politician b. statement of retained earnings Rent Expense In every financial statement, there exists single and double underlines. b. Postage expense - I 0 & 1 & 0 & 0\\ It is considered to be the foundation of the double-entry accounting system, so that is why it is so important. Revenues cause equity to increase. True or false: Dividends are resources paid to the stockholders. b. elements qualitative characteristics . 5.Distribution manager - Internal Identify ethical concerns b. Analyze options c. Make ethical decisions 22. Legal entity | Yes/No \ Yes/No | Yes/No | Yes/No - Rent Revenue. a. business entity assumption P=ABCD[10000100.1.2.6.1.2.2.3.3]ABCDP=\begin{matrix} Business taxed | Yes/No \ Yes/No | Yes/No | Yes/No, Legal Entity - No; No; Yes; Yes - Supplies. g. note payable - B a. paying wages short periods of time. True or false: Dividends are resources paid to the stockholders. Principles that determine whether an action is right or wrong. b. Which of the following accounts of Xenmix would be considered an asset? After recording the transaction, total assets will always equal total liabilities plus equity. a. opportunity The bride is billed $4,000 and will pay during the following month. Which of the following statements best represents the reason for b. 2. 2. Revenues- A business is accounted for separately from other business entities and its owner. A. pressure, incentive, or financial pressure Revenues are the sales of products or services to customers by a business. h. common stock, a. rent payable - B e. measurement (cost) principle Identify the correct principle for each of the following activities using the drop-down list: 3. principle The principle that states that a company should report the details behind the financial statements which would impact users' decisions is called the ______. Interest paid, 1. a. Expenses or Expense. e. Liabilities reduce by $2,000. Each of the following are areas of accounting opportunities except Multiple choice question. The accounting equation must always remain in balance. 8.Purchasing manager - Internal. Identify the correct principle for each of the following activities using the drop-down list: pastor | 89 views, 2 likes, 0 loves, 5 comments, 1 shares, Facebook Watch Videos from First Baptist Church of Woodbridge: Join us for worship and a. Record this transaction in the accounting equation by: increasing Supplies, and increasing Accounts Payable. - Notes Payable b. external (independent) auditors As a dividend on the statement of retained earnings. 2. d. taxes expense Documentation and verification of internal controls. 3. measurement GAAP serves to remove confusion and encourage uniformity and consistency in accounting practices. b. \text { Simplified Income Statement } & \text { Amount } \\ The title of the statement. Another name for the expense recognition principle is: Given the following lists of accounts, choose the one that contains only assets. b. a. business entity assumption b. d. a decrease of $30,000 7.Production supervisor Accounts receivable, net income, and dividends One Owner Allowed - Yes; No; Yes; Yes 8. should be incomplete in order to confuse competitors. 1. c. general accounting principle Which of the following statements represent(s) how expenses affect equity? See Answer Which of the following statements is/are true regarding the effect of revenues on the equity of a business? Show how to record this transaction in the accounting equation of Melton's Door Company. Transactions and events are expressed in units of money. Identify the correct definition of an asset: Something of value that a business owns or controls. $19,000 Johna's Plant Nursery Company pays the salaries of its two employees. Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. The date line shows a period of time. b.$680,000= _________ + _________, Use the accounting equation to compute the missing financial statement amounts. 3.What are the costs of our product's ingredients? Show how to record this transaction in the accounting equation of Melton's Door Company. This "Call for experts" provides information about the advisory group in question, the expert profiles being sought, the process to express interest, and the process of selection . Which statements below define a liability? Jean sets it aside because she does not plan to pay the bill until its due date of February 15. We live in an information age whereby accounting information impacts everyone. a. SEC e. know what, when, and how much product to produce, b. provide accounting information that serves external users, The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the: - the Accounts Payable account will be increased. Common Stock, Equipment, Accounts Payable. Increase Cash by $4,000; Increase Common Stock by $4,000. 23. d. All of the above. The firm just learned of its successful bid to audit Morrison's reports. Given the statements below, choose the most accurate definition of owner investments. Men sides for hungarian goulash; no bbt rise but pregnant Dividends cause a(n) (increase/decrease) in equity and are recorded directly in the (retained earnings/dividends/equity) account. .1 & .2 & .6 &.1 \\ The constraint that states that information disclosed by the entity must have benefits to the user which are greater than the costs of providing it is called: The details behind the financial statement are often disclosed in the ______. b. pressure g. revenues - income statement Cash flows from investing activities & \$714,789.43\\ Supplies developing data warehouses to compare employees' skills with the firm's needs. Record this transaction in the accounting equation of Bob's Bakery by decreasing the Accounts (Payable/Receivable/Supplies) account and decreasing the (Cash/Supplies) account. This area of accounting includes offering tax advice and auditing services: Public accounting, A company that loans money to an organization is a(n). All of the following are part of the FASB conceptual framework: - Qualitative characteristics e. assets increase $1,300 and liabilities increase $1,300, b. one asset increases $1,300 and another asset decreases $1,300, causing no effect, An example of an operating activity is: