Identify which items belong on the income statement: Identify the correct assumption for each of the following activities using the drop-down list. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. Record this transaction in the accounting equation. - 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 h. marketing managers matches d. assets decrease $1,300 and equity increases $1,300 c. The business must record this event, which would increase liabilities and decrease equity on January 31. - Income Statement d. Because the bill is set aside for payment in February, there would be no effect on the accounting equation as of January 31. c. The business must record this event, which would increase liabilities and decrease equity on January 31. 4.Shareholder - External b. statement of retained earnings - Supplies. Wages payable Equipment a. 1. _____ includes opportunities in general accounting, cost accounting and internal auditing. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. The remainder of the bill was on credit. What are Generally Accepted Accounting Principles? Consulting revenue - revenues GAAP serves to remove confusion and encourage uniformity and consistency in accounting practices. The statement reports the financial position of a company at a point in time. Moreover, under its doctrine, it proves that the balance sheet must always remain balance. Jackson's Programming paid its June rent of $500 cash. 6. - Wages Payable Users who do not directly run the organization and have limited access to accounting information are known as _____ users. b. Expenses reduce by $2,000 Human resources executive - Internal ocean township police hiring. c. general accounting principle expenses, expense, or expenses incurred. - Service Revenue b. one asset increases $1,300 and another asset decreases $1,300, causing no effect e. Liabilities reduce by $2,000. - Elements e. $792,000, Outflows of cash and other resources to stockholders are: Each of the following are areas of accounting opportunities except a. Each of the following are areas of accounting opportunities except ______. b. measurement Each of the following are areas of accounting opportunities except regulators. Each branch has come about thanks to technological, economic or industrial developments. The relation of assets, liabilities and equity is reflected in the equation. m. payroll clerk - internal users, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. What is the amount of its equity? b. Sally Smith decided to start a sea shell business organized as a corporation. The date line shows a specific date. P=ABCD10.1.201.2.200.6.300.1.3ABCD. Which list of accounts below, identifies only accounts that would appear on a balance sheet. Match each of the descriptions with the term or phrase it best reflects. The ban was maintained until the 7th century, though Christians would soon be granted an exemption: during the 4th century, the ordered the construction of Christian holy sites in the city, including the. 6. Blank 1: cash a. Accounts Payable. 75,0000 = _____________ + 40,000 Cash flows from investing, operating and financing activities LO 1.2 Financial accounting information ________. $714,789.4324,561.78+7147.93\begin{array}{r r} h. total liabilities and equity - balance sheet. 4. e. taxes payable - B a. opportunity Users of accounting information can be divided into two main groups. 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: On 8/1, supplies costing $500 were purchased on credit. \text { Net Income } & \$ 19,000 \\ On January 31, Jean Consulting Company receives a bill for that month's utilities in the amount of $500. c. statement of retained earnings Their usefulness will be noted below, as applicable. c. rationalization, Identify each of the following terms or phrases as an accounting (a) principle, (b) assumption, or (c) constraint. The three factors that must exist for a person to commit fraud include ______, ______, and ______. Exchanges of value between two entities - an asset has been created or increased. Which organization has the legal authority to create Generally Accepted Accounting Principles? g. expense recognition - principle A company's obligation to provide assets, products or services to others. The SEC has delegated the task of standard setting to: The principle which says that revenue is recognized when goods or services are provided to customers at an amount expected to be received from the customer is known as the: Identify the roles of the International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS). To record the purchase of supplies for cash, the correct entry into the accounting equation would include an increase to ______ and a decrease to ______. Jack Pickle decided to start a small business as a corporation. Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. $13,000 l. government officials - external users Identify the items below that reflect the proper heading on a balance sheet. b. Postage expense - I - Retained earnings, 12/31 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 . The company bills at $75.00 for the first 30 minutes and$2.00 per minute for anything beyond 30 minutes. 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. Each of the following are areas of accounting opportunities except: Regulators Regulators Learning Objective 01-C3: Explain why ethics are crucial to accounting. An assessment of whether financial statements follow GAAP. Dividends of $60 cash are paid to the corporation's stockholders. Computer equipment - assets How will this transaction affect the accounting equation? Salaries expense will be increased. P=ABCD[10000100.1.2.6.1.2.2.3.3]ABCDP=\begin{matrix} Happenings that affect the accounting equation - Events Accounts receivable, net income, and dividends Buildings - assets We live in an information age whereby accounting information impacts everyone. b.They must be located near seaports. j. chief audit executive (CAE) 2. Each of the financial statements on the left are described on the right. a. balance sheet 4. \end{matrix} The events that affect the entity and in which other entities participate are known as a. A single-ruled line denotes an addition or subtraction and double underlines indicate the final totals. c. nonexecutive employees 5.Should we spend additional money for redesign of our product? - Accounts Payable Lupo Company also paid dividends of $2,000. In preparing financial statements for Dockside Digs, Mike makes sure that the expense transactions of Sailing Passions are kept separate from Dockside Digs's transactions and financial statements. a. customers 4. i. utility boards - external users f. legal expense On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. evenues are the sales of products or services to customers by a business. 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. The accounting equation must always remain in balance. Building External users of accounting information are ____________ in running the organization. g. Legal expense - I In addition to the cost-benefit constraint, two other constraints include: Given the following list of accounts, identify which are classified as liabilities. Expenses decrease equity. g. note payable a. Identifying b. b. cash from operating activities - CF Dividends cause a(n) (increase/decrease) _______________ in equity and are recorded directly in the (retained earnings/dividends/equity) ________________ account. h. Advertising expense - I, Identify each of the following items as revenues, expenses, or dividends from the drop down provided. a. . 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: Identify the correct definition of an asset: An asset is something of value that a business owns or controls. These groups include: Internal and external 2,Each of the following are areas of accounting opportunities except regulators Internal and external 2 , Each of the following are areas of accounting opportunities except regulators 3.The three factors that must exist for a person to commit fraud include Opportunity, pressure, rationalization Another name for the expense recognition principle is: Given the following lists of accounts, choose the one that contains only assets. Regulators c. Taxation d. Financial 10. k. legislators Which of the following statements is/are true regarding the effect of revenues on the equity of a business? business activities requires that we prepare accounting reports such as financial statements, which we analyze and interpret. 7.What are the costs of our service to customers? 40,000 = 16,000 + 20,000 - 0 + _________ - 8,000 Vietnam (Vietnamese: Vit Nam, [vt nm] (), commonly abbreviated VN), officially the Socialist Republic of Vietnam (SRV), is a country in Southeast Asia.It is located at the eastern edge of mainland Southeast Asia, with an area of 331,212 square kilometres (127,882 sq mi) and population of 99 million, making it the world's fifteenth-most populous country. a. c. monitor consumer needs, tastes, and price concerns b. pressure b. IASB The accounting assumption which presumes that a business will continue operating is called the: Given the following list of accounts, identify which are classified as assets. c. going-concern assumption b. pressure An amount owned d. Dividends, beginning retained earnings, ending retained earnings, c. Cash, accounts receivable, and common stock, Identify which items belong on the statement of cash flows: 7.What are the costs of our service to customers? a. b. purchasing office equipment Which of the following statements is correct regarding owner investments? Retained earnings, 12/31 a. serve the decision-making needs of internal users During September, Sally's Hair Salon purchased $900 of supplies on account. d. taxes expense b. expense recognition (matching) principle 4. conservatism, 1. assumption Expenses- a. $108,000 Record the October transaction into Sally's accounting equation by: decreasing Cash, $200. h. revenue recognition, a. cost-benefit - constraint 1. One Owner Allowed - Yes; No; Yes; Yes d. going-concern assumption Note: enter one answer for each blank. c. equipment - balance sheet a. Financial accounting From the following statements, select the one that describes the effect of dividends on equity. e. measurement (cost) principle B. Investments: Increase equity and are assets an owner puts into the business. 2. business entity d. income statement and balance sheet Given the following lists of accounts, choose the one that contains only liabilities. d. Dividends, beginning retained earnings, ending retained earnings, d. Dividends, beginning retained earnings, ending retained earnings, Identify which items belong on the balance sheet: The company name is listed at the top of the heading. Supplies. 21. The college paid immediately. f. revenue recognition principle, a. The correct definition of revenues is: Revenues ______ ______ and are earned from the sale of products and services. 5.Should we spend additional money for redesign of our product? As a dividend on the statement of retained earnings. The company name. 1. a. accounting equation The bride is billed $4,000 and will pay during the following month. Taxes Payable, Accounts Payable, Wages Payable. Given the statements below, choose the most accurate definition of owner investments. Melton's Door Company pays rent on the building facilities of $5,000 on May 1. Owner investments cause equity to increase. 4.Should we buy, hold, or sell a company's stock? Identify the broad opportunity areas of accounting. 5. - External 2. a. e. prescribes that a company record the expenses it incurred to generate the revenue reported, d. means that a business is accounted for separately from other business entities, including its owner, Indicate in which financial statement each item would most likely appear, by selecting income statement (i), balance sheet (b), and statement of cash flows (cf), from the drop down provided: .1 & .2 & .6 &.1 \\ Identify the fraud risk factor in each of the following situations: Company Assets = Liabilities + Common Stock Dividends + Revenues Expenses After recording the transaction, total assets will always equal total liabilities plus equity. These standards, known as the generally accepted accounting principles ( GAAP ), are a set of concepts, conventions, assumptions and principles followed by accountants. The FASB and IASB are working to reduce differences between U.S. GAAP and IFRS. True or false: Dividends are resources paid to the stockholders. a. cost-benefit should be prepared differently by each company. Which statements below define a liability? Revenues increase equity. 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. - managers are expected to grow business or be fired Presumes that the business will continue operating in the future. Informacion actualizada del Sector Logistico. The definition of expenses includes which of the following statements? Happenings that affect the accounting equation The statement of retained earnings explains changes in equity from net income (or loss) and from any ______ over a period of time. \text { Selling, General, and Administrative Expenses } & \underline{(488,000)} \\ Equity is equal to assets minus liabilities. Which of the following statements explain how the accounting equation applies to businesses? Accounting professionals who provide services to many clients. This area of accounting includes offering tax advice and auditing services: Public accounting, A company that loans money to an organization is a(n). Dividends cause a(n) (increase/decrease) in equity and are recorded directly in the (retained earnings/dividends/equity) account. Balance Sheet: Reports the balance of assets, liabilities and equity at a point in time a. k. legislators - external users 3. On 8/1, supplies costing $500 were purchased on credit. 7.Production supervisor - Internal 2. e. lenders, If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be: Identify the fraud risk factor in each of the following situations: On May 1, Mary's Morsels Company provided catering services at a wedding. b. accounts receivable The primary role of managers in business is to supervise other people's performance. Match each item on the left with its correct definition on the right. e. liabilities It identifies, records, and communicates business transactions. Resources controlled by the business. D $87,000 = _________+$46,000 f. regulators - external users The equation applies to all transactions. a. SEC d. a decrease of $30,000 Record the October transaction into Sally's accounting equation by: - decreasing Accounts Payable, $200. 7. Record this transaction into the accounting equation of Landen Consulting by: increasing Cash, $400. In every financial statement, there exists single and double underlines. C \\ The FASB conceptual framework consists of all of the following except : a. . An information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities. The accounting assumption that presumes the life of a company can be divided into time periods is called the: A ______ is a business entity owned by one person. The college paid immediately. Summary. Total assets of Martin Marine equal $680,000 and its liabilities and equity amounts are equal to each other. True or false: Return on assets is computed as Net Income divided by Total Assets. m. payroll clerk, a. directors - external users - Increase equity and are assets an owner puts into the business. C. Save company resources, like time and paper. Calculate Boaz Company's return on assets. Demonstrate how ABC Co. would record this transaction in the accounting equation by completing the following sentence. The concepts and rules that govern financial accounting practice. ABC Co. performs $200 of services for a customer, but does not get paid right away. Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. - Internal - managers are told to make extreme cuts in expenses b. the company paid an amount due on credit decreasing Accounts Payable, $200. - Taxes Payable. Define what the income statement reports by completing the following sentence: The income statement describes a company's ______ and ______ along with the resulting net income or loss over a period of time due to earnings related activities. Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. The fraud triangle consists of three components: (1) Opportunity, (2) Incentive, and (3) Rationalization. c. general accounting principle b. provide accounting information that serves external users short periods of time. 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