c. nonexecutive employees Expenses- i. utility boards (Obj. Boaz's net income is $5 million. 4.Shareholder 3. One owner allowed | Yes/No \ Yes/No | Yes/No | Yes/No Select the account that would be decreased if Hillary's Hair Salon decides to pay $40 cash dividends to its shareholders. e. services revenue, If the assets of a company increase by $55,000 during the year and its liabilities increase by $25,000 during the same year the company during the year must have been: Bob's Bakery receives its utility bill of $800 for the month and pays it immediately. Cost of sales - expenses e. service managers Supplies. Identify the broad opportunity areas of accounting (select all that apply) a. Cash dividends - dividends 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. After recording the transaction, total assets will always equal total liabilities plus equity. The IASB issues IFRS to increase comparability of accounting reports between companies in different countries. a. opportunity Given the following list of accounts, identify which are classified as assets. f. time period - assumption The four basic financial statements are: Dividends cause a(n) (increase/decrease) _______________ in equity and are recorded directly in the (retained earnings/dividends/equity) ________________ account. The three factors that must exist for a person to commit fraud include ______, ______, and ______. - managers are expected to grow business or be fired g. expense recognition An assessment of whether financial statements follow GAAP. Issued on: 17 April 2023Deadline: 20 May 2023The South-East Asia Regional Office of World Health Organization (WHO) is seeking experts to serve as members one of the [name of the advisory group]. Jackson Company purchased office equipment costing $3,000 for his business and paid immediately. - Increase equity and are the assets earned from a company's earning activities 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. a. 6. a. serve the decision-making needs of internal users $102,800=$38,000+$56,000 _________ +$36,000$24,000, Indicate in which financial statement each item would most likely appear, by selecting income statement (I), balance sheet (B), or statement of cash flows (CF) from the drop down provided: e. taxes payable - B 20. c. rationalization, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. 1). Owner investments cause a(n) _____ in equity. Legal entity | Yes/No \ Yes/No | Yes/No | Yes/No 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 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. d. going concern 6.Creditor - External The four major types of transactions that affect equity in a business are ______ accounts, ______ accounts, dividends and common stock. Revenues are the sales of products or services to customers by a business. The title of the statement. 5. developing data warehouses to compare employees' skills with the firm's needs. \text { Depreciation Expense } & (52,000) \\ 3. \end{array} a. Conveyance 80,000 = 32,000 + 44,000 - _________ + 24,000 - 18,000, Indicate in which financial statement each item would most likely appear, by selecting income statement, balance sheet, or statement of cash flow. Company Assets = Liabilities + Common Stock Dividends + Revenues Expenses Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses. 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. Record this transaction in the accounting equation by: The four major types of transactions that affect equity in a business are _____ accounts, _____ accounts, dividends and common stock. - Recognition and measurement What are Generally Accepted Accounting Principles? c. Documentation and verification of external control effectiveness. Which of the following correctly depicts the accounting equation? Equity is equal to assets minus liabilities. 23. d. selling stock Which statements below define a liability? Which inventory items are out of stock? c. FASB Exchanges of value between two entities - External transactions Which of the following statements is correct regarding owner investments? Resources controlled by the business. The business must record this event, which would decrease cash and decrease equity on January 31. Smith Company purchased $100 of supplies for her business and paid immediately. h. common stock, a. rent payable - B ABC Co. performs $200 of services for a customer, but does not get paid right away. Managerial b. The statement reports the financial position of a company at a point in time. If Neros pays a cash dividend to its sole stockholder to pay for a family vacation, how is this reported on the financial statements? True or false: Return on assets is computed as Net Income divided by Total Assets. Income Statement: Reports the revenues and expenses incurred by a business for a period of time 4. d. Factory - B h. marketing managers 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. Human resources executive - Internal - External The firm just learned of its successful bid to audit Morrison's reports. Each of the following are areas of accounting opportunities except a. We live in an information age whereby accounting information impacts everyone. Men sides for hungarian goulash; no bbt rise but pregnant Which inventory items are out of stock? Which of the following statements is/are true regarding the effect of revenues on the equity of a business? d. stock issuances Identify the correct assumption for each of the following activities using the drop-down list. Owner investments cause equity to increase. A creditor's claims against the assets of a business. e. liabilities - balance sheet The company name is listed at the top of the heading. Cash flows from investing activities Identify the fraud risk factor in each of the following situations: Supplies Exchanges within an entity - Internal transactions, Analyze the following transaction and select the best answer.The business pays $2,000 in cash to the landlord for office space rent. What is the amount of its equity? Demonstrate how ABC Co. would record this transaction in the accounting equation by completing the following sentence. g. revenues 3.What are the costs of our product's ingredients? The company earned $35,000 of revenues and incurred $23,000 of expenses. Find the limiting matrix for the indicated standard form. 2. _____ includes opportunities in general accounting, cost accounting and internal auditing. - Revenues Rental revenue - Taxes Payable. b. cash from operating activities - cash flows The accounting process is the recognition or nonrecognition of business activities as accountable events. On 6/25, supplies costing $1,000 were purchased, but only $400 of this amount was paid on 6/25. 3. measurement Which of the following statements explain how the accounting equation applies to businesses? All of the following are part of the FASB conceptual framework: - Qualitative characteristics - Rent Expense The definition of expenses includes which of the following statements? Revenue, expenses and net income Overview [ edit] Identify which of the following statements is correct as to why accounting is important. f. revenue recognition principle, b. expense recognition (matching) principle, Identify which accounting principle or assumption best describes each of the following practices: True or false: Dividends are resources paid to the stockholders. b. - Expenses Preparing and entering a list of checks issued. 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: P=ABCD10.1.201.2.200.6.300.1.3ABCD. Salaries expense will be increased. - Contributed capital. The relation of assets, liabilities and equity is reflected in the equation. Regulators c. Taxation d. Financial 10. The accounting equation must always remain in balance so that assets always equal the sum of liabilities and equity. Equipment - assets e. measurement (cost) principle c. Identify ethical concerns; Analyze options; Make ethical decision. Demonstrate how to record this transaction in the accounting equation. We live in an information age whereby accounting information impacts everyone. 1. Identify the correct assumption for each of the following activities using the drop-down list. Land 3. \text { Sales } & \$ 567,000 \\ Her initial investment in the business consisted of $10,000 in cash in exchange for common stock. The total of everything owned by a business must always equal the total of what the business owes to creditors and owners. At the end of the year, the company's equity totaled: b. IASB a. means that accounting information reflects a presumption tha tthe business will continue operating instead of being closed 40,000 = 16,000 + 20,000 - 0 + _________ - 8,000 GAAP serves to remove confusion and encourage uniformity and consistency in accounting practices. The fraud triangle consists of three components: (1) Opportunity, (2) Incentive, and (3) Rationalization. e. full disclosure m. payroll clerk - internal users, The fraud triangle asserts that the following three factors must exist for a person to commit fraud. b. pressure These standards, known as the generally accepted accounting principles ( GAAP ), are a set of concepts, conventions, assumptions and principles followed by accountants. Calculate Boaz Company's return on assets. Choose the statement below that describes what these are for and when to use them. 5.Should we spend additional money for redesign of our product? 1. 2. a. opportunity The company name is listed at the top of the heading. Entering a list of the sales invoices, including the prices and quantities, for the company's recordkeeper, 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: ABC Co. would increase the Accounts ______ account and increase the ______ account in the accounting equation. b. pressure d. Dividends, beginning retained earnings, ending retained earnings, d. Dividends, beginning retained earnings, ending retained earnings, Identify which items belong on the balance sheet: C \\ Congress directed the Department of the Treasury to act on many of the provisions, and many other provisions need implementation guidance from the Treasury and . 5.Should we spend additional money for redesign of our product? The data and figures were quoted from a number of researchers and organizations in the field of poverty around the world. a. Each of the following are areas of accounting opportunities except regulators. The ______ is the first financial statement to be prepared. Expenses decrease equity. 2. Most management activities fall into the following categories: Planning: Managers plan by setting long-term goals for the business, as well as short-term strategies needed to execute those goals. Claims of the owner(s) on the assets of the business. 6. The equation applies to all transactions. If equity is $30,000 and liabilities are $19,000, then assets must equal: 4. Record the October transaction into Sally's accounting equation by: decreasing Cash, $200. Obligations to provide assets, products or services to others. Taxes Payable Documentation and verification of financial statements. Record this transaction into the accounting equation of Landen Consulting by: increasing Cash, $400. d. going concern - assumption If expenses increase, then total equity decreases. Is revision still necessary in a digital age when workplace messages fly back and forth in split seconds? - Building. If a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transaction into the accounting equation by: increasing Cash and decreasing Accounts Receivable. The SEC has delegated the task of standard setting to: The FASB conceptual framework consists of all of the following except: The principle which states that a company should record expenses it incurred in the same period as the revenue it generated is known as the. Given the list of accounts below, identify which of them would appear on a balance sheet. A company pays monthly office rent of $1,500 in cash. - Land A _____ is a business entity owned by one person. The FASB conceptual framework consists of all of the following except : a. . Summary. Revenues: increase equity and are the assets earned from a company's earning activities From the following statements, identify the correct definition of equity. Rent Expense Wages Expense The action of a neurotransmitter is based on the _______________. 2. Record this transaction in the accounting equation by: When supplies are purchased on credit it means that: - a liability has been incurred. 1. Reason: The equation must remain in balance. a. The Accounts Payable account is a(n) ______ account. Accounting information helps users make business and financial decisions. - Statement of Retained Earnings, 1. It is considered to be the foundation of the double-entry accounting system, so that is why it is so important. 2. assumption b. IASB 0 & 1 & 0 & 0\\ .2 & .2 &.3 & .3 - Cash 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. The statement of retained earnings explains changes in equity from net income (or loss) and from any ______ over a period of time. evenues are the sales of products or services to customers by a business. Identify ethical concerns Analyze options 1. b. Analyze options; Identify ethical concerns; Make ethical decision. In every financial statement, there exists single and double underlines. The accounting equation must always remain in balance. - Common Stock b. external (independent) auditors - external users Another name for the expense recognition principle is: Given the following lists of accounts, choose the one that contains only assets. Revenues- The company name is listed at the top of the heading. - Accounts Payable .1 & .2 & .6 &.1 \\ In addition to the cost-benefit constraint, two other constraints include: Claims of the owner(s) on the assets of the business. - Accounts Receivable The date line shows a specific date. Taxes Payable, Accounts Payable, Wages Payable. d. All of the above. 8.Purchasing manager, 1. b. cash from operating activities - CF Which organization has the legal authority to create Generally Accepted Accounting Principles? 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 Identify ethical concerns; Make ethical decision; Analyze options. k. legislators Which of the statements correctly represents the accounting equation? beliefs that distinguish right from wrong and accepted standards of good and bad behavior. The principle which states that a company should record expenses it incurred in the same period as the revenue it generated is known as the ______. Advertisement - expenses Match each of the descriptions with the term or phrase it best reflects. Smith Company purchased $100 of supplies for her business and paid immediately. Cash flows from operating activities the business will pay for the supplies at a later time. 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: Printing Generally accepted accounting principles (GAAP) wants information to have: 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. Statement of Cash Flows: Identifies the cash inflows and outflows over a period of time. The bride is billed $4,000 and will pay during the following month. c. The business must record this event, which would increase liabilities and decrease equity on January 31. - CF which organization has the legal authority to create Generally Accepted accounting Principles Land a is! 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