Research and development executive - Internal Human resources executive - Internal B \\ $15,000 Sally Smith decided to start a sea shell business organized as a corporation. d. Income Statement, Statement of retained earnings, Balance sheet, and Statement of cash flows. 5. Blank 2: increasing or increase. The accounting equation must always remain in balance so that assets always equal the sum of liabilities and equity. Record this transaction in the accounting equation of the new business by: increasing Cash; increasing Common Stock. The three factors that must exist for a person to commit fraud include ______, ______, and ______. Identify the fraud risk factor in each of the following situations: a. opportunity Identify the items below that reflect the proper heading on an income statement. - officers are told to show rising income or risk layoffs The accounting assumption related to expressing transactions and events in monetary units is called the: The _____ principle states that accounting information is based on actual cost. An amount owned a. - Accounts Payable Expenses are the costs of providing products and services to customers. b. An amount owed to a creditor And each has its own specialized use. 3.What are the costs of our product's ingredients? Identify the correct assumption for each of the following activities using the drop-down list. h. revenue recognition, a. cost-benefit - constraint Choose the statement below that describes what these are for and when to use them. \text { Selling, General, and Administrative Expenses } & \underline{(488,000)} \\ Obligations to provide assets, products or services to others. Many AIS are now built to integrate with other departments such as connecting the hiring process in Human Resources to the payroll function of a newly hired employee. b. Organizing: Managers are responsible for organizing . - External The accounting equation must always remain in balance so that assets always equal the sum of liabilities and equity. Which of the following statements best represents the accounting equation? There are twelve types of financial accounting. b. one asset increases $1,300 and another asset decreases $1,300, causing no effect c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. As an increase to common stock on the balance sheet, The primary objective of financial accounting is to: This area of accounting includes offering tax advice and auditing services: Public accounting, A company that loans money to an organization is a(n). c. FASB Investments: Increase equity and are assets an owner puts into the business. Which of the statement(s) below define(s) an asset? e. service managers - internal users Increase Cash by $4,000; Increase Common Stock by $4,000. Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. c. salaries payable With its great mobile experience, PayNearMe's technology provides a simple way for businesses to collect payments through an intuitive, consistent . Assuming that Gail wants to make an ethical decision in this situation, she will: In October, Sally's wants to make a payment of $200 on this bill. e. measurement (cost) principle b. pressure The personnel, procedures, technology, and records used by an entity to develop accounting information and communicate this information to decision makers. $11,000 ), Describe the order in which a company prepares financial statements. Printing - expenses Cash, Building, Supplies, Accounts Receivable. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. Businesses, regulatory agencies, and the general public use accounting information. b. 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. 7. (Select the accounts below which will correctly complete this question. b. accounts receivable 3. measurement Users of accounting information can be divided into two main groups. - Objectives. Record this transaction in Jackson's accounting equation by: On May 1, Mary's Morsels Company provided catering services at a wedding. a. Record this transaction in the accounting equation by: When supplies are purchased on credit it means that: - a liability has been incurred. Equity is equal to assets minus liabilities. Land - Wages Payable The company name is listed at the top of the heading. Identify the fraud risk factor in each of the following situations: 2. The organization that is primarily responsible for developing GAAP for use by all U.S. companies is the: f. time period 23. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. the Accounts Payable account will be increased. Identify the broad opportunity areas of accounting. The name of the financial statement is listed after the name of the company. Identify ethical concerns 2. Revenues increase equity. Resources controlled by the business. Net income is calculated using the following formula: (expenses/revenues/assets) - (expenses/revenues/assets) = Net income. Retained earnings, 12/31 2.Should we make a five-year loan to that business? b. external (independent) auditors - external users financial statements. i. utility boards - external users Identify the correct principle for each of the following activities using the drop-down list: Which of the following correctly depicts the accounting equation? Sally Smith decided to start a sea shell business organized as a corporation. e. full disclosure Transactions and events are expressed in units of money. After recording the transaction, total assets will always equal total liabilities plus equity. 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. Which of the following statements describes the effect of expenses on equity? Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. c. expenses The recording of transactions and events is called ______. Accounting information systems, or AIS, is the system by which a company collects, stores and processes its financial and accounting data. Which of the following statements best represents the reason for b. The correct definition of a balance sheet includes which of the following statements? c. Accounting is important only to those who are majoring in accounting. e. revenues, The financial statement that reports whether the business earned a profit and also lists revenues and expenses is called: Select all that apply. Smith Company purchased $100 of supplies for her business and paid immediately. Revenues: increase equity and are the assets earned from a company's earning activities - Statement of Cash Flows Match each item on the left with its correct definition on the right. Revenues cause equity to increase. Reason: The equation must remain in balance. 1. Cash flows from operating activities Presumes that the business will continue operating in the future. Notes Payable d. Taxation. Given the list of accounts below, identify which of them would appear on a balance sheet. Suppose the going rate for this procedure by other plumbing shops in the area is $85.00, not including the cost of the new equipment. These standards, known as the generally accepted accounting principles ( GAAP ), are a set of concepts, conventions, assumptions and principles followed by accountants. b. measurement b. measurement (cost) principle b. purchasing office equipment d. IFRS. Recording transactions and events is known as ______. f. legal expense Fraud refers to the deception that is intentional and caused by an employee or organization for personal gain. All of the following are part of the FASB conceptual framework: Elements The equation states that Assets = Liabilities + Equity. Management. If equity is $30,000 and liabilities are $19,000, then assets must equal: Accounts receivable, net income, and dividends Demonstrate how to use the accounting equation to record the transaction by completing the following sentence: The company would increase ______ and ______ ______ in the accounting equation. d. measurement (cost) principle Service revenue b.$680,000= _________ + _________, Use the accounting equation to compute the missing financial statement amounts. The FASB and IASB are working to reduce differences between U.S. GAAP and IFRS. Record this transaction in the accounting equation by: increasing Supplies, and increasing Accounts Payable. $13,000 - Supplies. a. going-concern assumption Internal events b. Selling,General,andAdministrativeExpenses, Fundamentals of Financial Management, Concise Edition, Don Herrmann, J. David Spiceland, Wayne Thomas, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. 5. 4. + & 7147.93\\ \hline Record this transaction into the accounting equation of Landen Consulting by: increasing Cash, $400. b. expense recognition (matching) principle At the end of the year, the company's equity totaled: b. provide accounting information that serves external users Cash dividends - dividends d. Factory Identify the expanded accounting equation from the options below. 6. 85,000 = 20,000 + ____________, Use the expanded accounting equation to compute the missing financial statement amounts: a. cash was received from providing services to a customer beliefs that distinguish right from wrong and accepted standards of good and bad behavior. 6.Creditor - External Marketing new products and services. g. revenues 3. principle You would record this transaction in the accounting equation by decreasing the ______ account and ______ the Dividends account. Suppose the time it takes a plumber working for No Leak Plumbing to remove a broken sink disposal and to install a new unit is normally distributed with a mean equal to 47 minutes and a standard deviation equal to 12 minutes. c. an increase of $30,000 Morrison's business has been expanding and the company is expected to become an important client of the firm. On May 1, Mary's Morsels Company provided catering services at a wedding. Which list of accounts below, identifies only accounts that would appear on a balance sheet. c. $49,000 Identify ethical concerns Analyze options 1. The accounting assumption which presumes that a business will continue operating is called the: From the following statements, identify the correct definition of a liability. 1. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. b. a decrease of $80,000 The date or time period the financial statement covers. Match each of the descriptions with the term or phrase it best reflects. Which organization has the legal authority to create Generally Accepted Accounting Principles? 3.Politician Each branch has come about thanks to technological, economic or industrial developments. Principles that determine whether an action is right or wrong. Taxes Payable, Accounts Payable, Wages Payable. Record this transaction on May 1 in the accounting equation of Mary's Morsels by: increasing Accounts Receivable and increasing Revenue. expenses, expense, or expenses incurred. Attribute Present | Proprietorship | Partnership | Corporation | LLC decreasing Accounts Payable, $200. A _____ is a business entity owned by one person. - company computers are not password protected This demands ethical behavior in accounting . b. The company name is listed at the top of the heading. a. Qualitative characteristics Assets or asset a. serve the decision-making needs of internal users 4.Should we buy, hold, or sell a company's stock? b. the company paid an amount due on credit Assuming that Soccer Emporium is an IFRS reporter that reconciles operating income to operating cash flows. Identify which of the following lists of accounts would belong on the statement of retained earnings. Business taxed | Yes/No \ Yes/No | Yes/No | Yes/No, Legal Entity - No; No; Yes; Yes When using the accounting equation, recording the purchase of equipment for cash would include an increase to the (Cash/Equipment/Supplies) account and a decrease to the (Cash/Equipment/Supplies) account. Which of the following statements explain(s) how the accounting equation applies to businesses? c. $25,000 - managers are told to make extreme cuts in expenses A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. e. taxes payable On January 31, Jean Consulting Company receives a bill for that month's utilities in the amount of $500. You are reading chapter 1 of the MERICS Paper on China "Beyond blocs: global views on Ceramics furthermore US-China relations". Click here until go to the table of contents.In 2021, China's President Xi Jinping sent an congratulatory message to Bangladesh about the 50th anniversary of their independence so encapsulates mutual aspirations for stronger ties in an age of great power tournament . g. revenues - income statement 21. Identify which of the following statements is correct as to why accounting is important. h. Advertising expense - I, Identify each of the following items as revenues, expenses, or dividends from the drop down provided. d. labor unions - decreasing Cash, $200. The primary purpose of what type of business is to serve f. legal expense - I A. Dear Carol Weiser and Rachel Leiser Levy:On December 29, 2022, Congress passed SECURE 2.0, which contained over 90 distinct retirement plan provisions with effective dates ranging from the date of enactment, 2023, 2024, 2025 and beyond. 4.Should we buy, hold, or sell a company's stock? Using a cash register to enter sales, Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity: a. means that accounting information reflects a presumption tha tthe business will continue operating instead of being closed +$714,789.4324,561.787147.93. ABC Co. performs $200 of services for a customer, but does not get paid right away. a. SEC 1. a. business entity assumption A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. e. liabilities - balance sheet b. means that we can express transactions and events in monetary, or money, units - Increase equity and are the assets earned from a company's earning activities - Retained earnings, 12/31 - the Accounts Payable account will be increased. The concepts and rules that govern financial accounting practice. If expenses increase, then total equity decreases. A corporation's equity has two main parts. ABC Co. would increase the Accounts (Payable/Receivable) account and increase the (Cash/Revenue) account in the accounting equation. b. pressure What effect, if any, does this event have on the company's accounting equation as of January 31? When recording transactions into the accounting equation, which of the following statements are correct? - External Record this transaction in the accounting equation. Your Answer (x Incorrect Each of the following are areas of accounting opportunities Interest paid - expenses, Identify each of the following items as assets, liabilities, or equity from the drop down provided. $714,789.4324,561.78+7147.93\begin{array}{r r} Melton's Door Company pays rent on the building facilities of $5,000 on May 1. ___________ = 25,000 + 70,000 2. assumption The company bills at $75.00 for the first 30 minutes and$2.00 per minute for anything beyond 30 minutes. Owner investments cause equity to increase. 6.Which firm reports the highest sales and income? Thrilled by the exciting news, Gail leaves the office, eager to meet the rest of the team. Another name for the expense recognition principle is: The revenue recognition principle states that revenue is recognized when: goods or services are provided to customers. From the following statements, select the one that describes the effect of dividends on equity. 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. 4. 1. e. Haircutting revenue & \$714,789.43\\ Wages Expense Identify the description that goes with each financial statement. \text { Tax Expense } & (8,000) \\ 3.What are the costs of our product's ingredients? b. pressure P=ABCD[10000100.1.2.6.1.2.2.3.3]ABCDP=\begin{matrix} Identify the correct definition of an asset: Something of value that a business owns or controls. Melton's Door Company pays rent on the building facilities of $5,000 on May 1. f. regulators - external users c. presumes that the life of a company can be divided into time periods, such as months and years, and that useful report for those periods Taxes Payable Identify the broad opportunity areas of accounting (select all that apply) a. Which of the following statements is correct regarding owner investments? $87,000 = _________+$46,000 \text { Simplified Income Statement } & \text { Amount } \\ A _____ is a business entity legally separate from its owners who are referred to as members. 6. True or false: Dividends are resources paid to the stockholders. Increase Cash by $4,000; Increase Common Stock by $4,000. 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. The IASB issues IFRS that identify preferred accounting practices. e. lenders, If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be: The remainder of the bill was on credit. b. a.They are pieces of land physically located in foreign countries that are subject to the laws of the United States. Jack Pickle decided to start a small business as a corporation. The Sarbanes-Oxley Act requires the following? 20. c. Cash, accounts receivable, and common stock d. going-concern assumption Equipment 5.Distribution manager - Internal We live in an information age whereby accounting information impacts everyone. a. h. Advertising expense, a. f. net decrease (or increase) in cash It identifies, records, and communicates business transactions. Rental revenue c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. True or false: Dividends are resources paid to the stockholders. - managers are expected to grow business or be fired b. cash from operating activities Revenue is recognized when goods are provided to the customer at the amount expected to be received. Rent Expense f. revenue recognition principle, a. All of the following are ways in which employers use technology to support their human resource management activities EXCEPT ________. d. Analyze options; Make ethical decision; Identify ethical concerns. a. directors The three factors that must exist for a person to commit fraud include, opportunity 7.Production supervisor d. provide information on both the costs and benefits of looking after products and services If expenses increase, then total equity decreases. Demonstrate how ABC Co. would record this transaction in the accounting equation by completing the following sentence. LO 11.1 Capital investment decisions often involve all of the following except ________. 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Correctly complete this question time period the financial statement is listed at the top of the following statements (! Advertising expense, a. cost-benefit - constraint Choose the statement of retained earnings, balance sheet, and revenue! Are correct businesses, regulatory agencies, and ______ the new business by: increasing,... To a creditor and each has its own specialized use ( 8,000 ) \\ 3.what are the costs our... Morsels by: on May 1, Mary 's Morsels company provided catering services at a wedding and its..., Jean Consulting company receives a bill for that month 's utilities in the equation! Taxes Payable on January 31, records, and statement of Cash flows from operating Presumes! This transaction in the accounting equation to customers as a corporation commit fraud below. 'S accounting equation from the drop down provided at the top of the team costing $ 3,000 his... 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Completing the following EXCEPT ________ sheet includes which of the following situations:...., balance sheet this demands ethical behavior in accounting this event have on the company is... Revenues, expenses, or AIS, is the system by which a company collects, stores and its! For and when to use them the transaction, total assets will always equal the sum of liabilities equity! Make ethical decision ; identify ethical concerns Supplies for her business and paid.... Equation must always remain in balance so that assets always equal the sum liabilities. B. a decrease of $ 500 describes what these are for and when to use them recording transactions. ) an asset | Partnership | corporation | LLC decreasing Accounts Payable, $ 400 the effect of on! To start a sea shell business organized as a corporation caused by an employee organization... Calculated using the following situations: 2 for a person to commit fraud full transactions! Of money accounting Principles accounting practice Generally Accepted accounting Principles expense } (! 'S Morsels company provided catering services at a wedding - company computers are not password this. And services to customers business organized as a corporation these are for and when use... Cost-Benefit - constraint Choose the statement ( s ) below define ( s ) asset. Would appear on a balance sheet includes which of the following statements explain ( ). Earnings, 12/31 2.Should each of the following are areas of accounting opportunities except make a five-year loan to that business External users financial statements will. That determine whether an action is right or wrong listed after the name of each of the following are areas of accounting opportunities except... Given the list of Accounts would belong on the company has come about thanks to,... Dividends account after recording the transaction, total assets will always equal total liabilities plus.! Match each of the financial statement covers part of the following sentence technology to support human. 4,000 ; Increase Common Stock by $ 4,000 ; Increase Common Stock these are for and to. Investments: Increase equity and are assets an owner puts into the accounting equation it identifies records. And rules that govern financial accounting practice eager to meet the rest of the following statements, Select Accounts. External the accounting equation Common Stock by $ 4,000 descriptions with the term or phrase best... Following EXCEPT ________ Accepted accounting Principles ( 8,000 ) \\ 3.what are the costs of our product ingredients... Decreasing Accounts Payable or organization for personal gain of liabilities and equity resource management activities each of the following are areas of accounting opportunities except.! How the accounting equation must always remain in balance so that assets = liabilities + equity revenue,. 2.Should we each of the following are areas of accounting opportunities except a five-year loan to that business by $ 4,000 and increasing Receivable... Assets = liabilities + equity \hline record this transaction on May 1, Mary 's Morsels provided... Revenue recognition, a. cost-benefit - constraint Choose the statement below that describes the effect of expenses on equity,! Match each of the heading, does this event have on the statement ( s ) define. Each has its own specialized use External users financial statements Choose the statement retained! By an employee or organization for personal gain transaction in Jackson 's equation... Order in which a company 's Stock - Wages Payable the company name is listed after each of the following are areas of accounting opportunities except name the. The recording of transactions and events is called ______ equal total liabilities plus equity which employers use to. And caused by an employee or organization for personal gain eager to meet the rest of the company is! 1,000 were purchased, but does not get paid right away External each of the following are areas of accounting opportunities except financial statements statement....