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Exam 1: Introduction to Accounting and Business

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Question 71

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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 72

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Determine the total liabilities at the end of the current year for Scott Industries. ​

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Question 73

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The statement of cash flows consists of three sections: cash flows from operating activities,cash flows from income activities,and cash flows from equity activities.

The accounting equation can be expressed as Assets - Liabilities = Shareholder's Equity.

How does paying a liability in cash affect the accounting equation?

If total liabilities decreased by $46,000 during a period of time and stockholders' equity increased by $60,000 during the same period,the amount and direction (increase or decrease) of the period's change in total assets is a

What are the three sections of the statement of cash flows?

Computer Corporation is starting its computer programming business and has sold stock of $15,000.Identify how the accounting equation will be affected.

The initials GAAP stand for

On May 7,Carpet Barn Company offered to pay $83,000 for land that had a selling price of $105,000.On May 15,Carpet Barn accepted a counteroffer of $95,000.On June 5,the land was assessed at a value of $115,000 for property tax purposes.On December 10,Carpet Barn Company was offered $135,000 for the land by another company.At what value should the land be recorded in Carpet Barn Company's records?

The ending balance of the retained earnings account appears in

A financial statement user would determine if a company was profitable or not during a specific period of time by reviewing the

Which type of accountant typically practices as an individual or as a member of a public accounting firm?

A summary of cash flows for Evelyn's Event Planning for the year ended December 31 is shown below. ​ ​ Prepare a statement of cash flows for Evelyn's Event Planning for the year ended December 31.

Which of the following are guidelines for behaving ethically? I. Identify the consequences of a decision and its effect on others. II) Consider your obligations and responsibilities to those affected by the decision. III) Identify your decision based on personal standards of honesty and fairness.

Which of the following is a business transaction?​

Companies like Enron,HealthSouth,and Xerox Corporation have been caught in the midst of ethical lapses that led to fines,firings,and criminal and / or civil prosecution.List and briefly describe two factors that are responsible for what went wrong in these companies.

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

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

The assets section of the balance sheet normally presents assets in