Apps-dso.sws.iastate.edu



Exam 1 ReviewMatch the following equations with their proper financial statement:282826074457Net Income= Revenues-ExpensesCFO+CFI+CFF= Change in CashAssets= Liabilities+Stockholders’ EquityBRE+NI-Dividends=ERE0Net Income= Revenues-ExpensesCFO+CFI+CFF= Change in CashAssets= Liabilities+Stockholders’ EquityBRE+NI-Dividends=ERE49973074457Balance Sheet _____Income Statement _____Statement of Retained Earnings______Statement of Cash Flows_____Balance Sheet _____Income Statement _____Statement of Retained Earnings______Statement of Cash Flows_____A company in their first year of business earns revenues of $500,000, expenses of $150,000, and pays dividends of $100,000. They have assets worth $750,000 and their contributed capital account equals $200,000. What is the amount of total liabilities? 150,000400,000350,000300,000A company purchases a truck with a price tag of $45,000 for $37,000. They pay $10,000 in cash and take out a loan for the rest. What amount would go under the truck account on the balance sheet?45,00010,00037,00027,000What principle is demonstrated in question #3?Matching PrincipleCost principlePrice PrincipleAccounting PrincipleMatch the following with their definition:148856164818Securities and Exchange Commission(SEC)____Public Company Accounting Oversight Board(PCAOB)____Financial Accounting Standards Board(FASB)____International Financial Reporting Standards(IFRS)____Generally Accepted Accounting Principles(GAAP)____0Securities and Exchange Commission(SEC)____Public Company Accounting Oversight Board(PCAOB)____Financial Accounting Standards Board(FASB)____International Financial Reporting Standards(IFRS)____Generally Accepted Accounting Principles(GAAP)____2743200164819The body that approves the rulesRules of accounting created by IASB for international useThe federal agency with the power to determine the rulesThe measurement rules used to develop the information in the financial statements in the US The private body that actually writes the rules0The body that approves the rulesRules of accounting created by IASB for international useThe federal agency with the power to determine the rulesThe measurement rules used to develop the information in the financial statements in the US The private body that actually writes the rules Who is primarily responsible for the information found within a company’s financial statements? AuditorsCreators of financial statementsManagementStockholders Which of the following is/are an example of a financing activity?Purchasing land to expand your companySelling shares of stock in exchange for cashTaking a loan from the bank Buying stock within another companyA&DB&CWhich of the following accounts has a normal debit balance?AssetsLiabilitiesRevenuesStockholders’ EquityWhich of the following is the correct transaction analysis for #3?Cash -10,000Accounts Payable +27,000Truck +45,000Cash +10,000Notes Payable +27,000Truck +37,000Cash -10,000Notes Payable +27,000Truck +37,000Cash -10,000Notes Payable -27,000Truck +37,000What time period classifies an asset as a current asset?>5 years<1 year>2 years <3 yearsCy’s Equipment sells computers for $200,000 and receives $35,000 of cash with the rest on credit. Cash (A) -35,000; Inventory (A) +200,000; N/P (L) -165,000Cash (A)+35,000; Inventory (A) -200,000; N/P (L) + 165,000Cash (A) +35,000; Inventory (A) -200,000; N/R (A) +165,000dCash (A) +35,000; Inventory (A) -200,000; A/R (A)+165,000When Revenue increases which accounts increase?SE, RE, & NISE, RE, ARE, BRE, LNI, SE, & CCWhen SE, RE, and NI decrease then expenses _______IncreaseDecrease In January 2010, Cleaning Corp. provided service to 20 homes. 5 customers paid automatically and the rest paid in March. When is revenue recognized?In January all sales revenue is recognized.In January only sales revenue is recognized only for 5 customers.In March all sales revenue is recognized.In January sales revenue for 5 customers is recognized and in March the rest.Under Accrual basis accounting, revenue is recognized when it is _____ and expense is recognized when it is ____.Incurred; earnedPaid for; incurredEarned; incurredAre dividends an expense?Lola bought a gift card for $50 and gave it to Martha. She hasn’t used the gift card. Is revenue recognized?Which of the following journal entries is correct regarding formatting?Supplies worth $3,000 is used upSupplies expense 3000Supplies3000Supplies 3000Supplies expense3000Supplies liability 3000Supplies3000Supplies 3000Supplies liability3000Apple’s financials for 2019 consisted of the following: Assets$10,000,000BRE$2,000,000Liabilities$ 4,000,000Dividends $3,000,000CC$ 2,000,000Revenues$7,000,000What are Apple’s expenses for 2019?$12,000,000$2,000,000$(4,000,000)$6,000,000Monsters, Inc. just ended their first year of business.? Their reported net income for the year was $800,000 and they paid $60,000 in dividends at the end of the year. Monsters get paid $20/hr.? What is the retained earnings balance at the end of the year?$860,000$740,000$960,000More information is neededAssuming that Monsters, Inc. earns net income of $200,000 in their second year of business and pays no dividends during that year, what is the retained earnings balance at the end of their second year of business? Use the previous problem…$540,000$1,060,000$940,000$200,000What is a corporation disadvantageDouble taxationEase of transferAbility to raise capitalLimited Stockholder liability ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download