accn ch 1

As of December 31, 2022, Rockford Corporation has assets of $3,500 and stockholders' equity of $1,500. What are the liabilities for Rockford as of December 31, 2022?

$2,000

Determine the net income for July: Employee salaries expense: $196,000 Interest expense: $26,000 Rent expense: $36,000 Consulting revenue: $464,000

$206,000

Rico's Taqueria had cash inflows from operating activities of $42,000; cash outflows from investing activities of $37,000, and cash outflows from financing activities of $27,000. Calculate the net increase of decrease in cash:

$22,000 decrease

Determine the amount of equity to report: Cash: $55,000 Buildings: $117,500 Land: $198,000 Liabilities: $123,500

$247,000

Determine the equity for December 31: Cash: $58,000 Buildings: $176,000 Equipment: $207,000 Liabilities: $142,000

$299,000

What was Macias Corporation's net income? Accounts receivable: $ 5,000 Sales revenue:75,000 Cash: 15,000 Salaries and wages expense:20,000 Rent expense: 10,000

$45,000

Zippy had cash flows from operations of $74,500; cash outflows from investing activities of $59,000; and cash inflows from financing of $37,000,. The net change in cash was:

$52,000 increase

If equity is $428,00 and liabilities are $202,000 then assets equal:

$630,000

During the month of March, Harley's Computer Services made purchases on account totaling $44,100. Also during the month of March, Harley was paid $8,900 by a customer for services to be provided in the future and paid $37,200 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,600, what is the balance in accounts payable at the end of March?

$84,500

GreenLawn Company provides landscaping services to clients. On May 1, a customer paid GreenLawn $82,000 for 6-months services in advance. GreenLawn's general journal entry to record this transaction will include a:

A credit to unearned revenue for $82,000

Which is not one of the three primary business activities?

Advertising

Saddleback company paid off $32,000 of its accounts payable in cash. What would the effects of this transaction on the accounting equation?

Assets decrease $32,000; liabilities decrease $32,000

If a company purchases equipment costing $4,300 on credit, the effect on the accounting equation would be:

Assets increase $4,300 and liabilities increase $4,300

If the liabilities of a company increased $84,000 during a period of time and equity in the company decreased $24,000 during the same period, what was the effect on the assets?

Assets would have increased $60,000

Which financial statement reports assets, liabilities, and stockholders' equity?

Balance sheet

Which statement presents information as of a specific point in time?

Balance sheet

Which is not one of the three forms of business organization?

Creditorship

Which of the following is an example of a financing activity?

Issuing shares of common stock.

If a company uses $1,330 of its cash to purchase supplies, the effect on the accounting equation would be:

One asset increases $1,330 and another asset decreases $1,330, causing no effect

Which is an advantage of corporations relative to partnerships and sole proprietorships?

Reduced legal liability for investors

Which statement about users of accounting information is incorrect?

Regulatory authorities are considered internal users.

If Houston Company billed a client for $23,000 of consulting work completed, the accounts receivable asset increases by $23,000 and:

Revenue increases $23,000

Which of the following did not result from the Sarbanes-Oxley Act?

Tax rates on corporations increased

What section of a statement of cash flows indicates the cash spent on new equipment during the past accounting period?

The investing activities section

The element of the annual report that presents an opinion regarding the fairness of the presentation of the financial position and results of operations is/are the:

auditor's opinion

Stockholders' equity represents:

claims of owners

If the liabilities of a business increased $95,000 during a period of time and the stockholder's equity in the business decreased $40,000 during the same period, the assets of the business must have:

increased $55,000

The element of a corporation's annual report that describes the corporation's accounting methods is/are the:

notes to the financial statements

Net income will result during a time period when:

revenues exceed expenses.