Financial Acct

"Answered" on the question map indicates that the question

has been visited but may be incomplete and/or incorrect

If equity is $30,000 and liabilities are $19,000, then assets must equal:

$49,000

The business pays $2,000 in cash to the landlord for office space rent

Equity reduces by $2,000

In some cases, your professor may allow you to check your work

True

The progress bar indicates how many concepts you have completed. how many are in progress, and how many are still left in the assignment.

True

When you have more than once account debited, you can enter them in either order without losing points.

True

In "Check my Work" errors are marked with red X's. You click on "Check my Work" and you only see green check marks, but it says "Answer is not complete" at the top. This indicates that

"so far, so good" What you have entered so far is correct, but you have not yet earned full credit

Identify which items belong on the statement of cash flows

Cash flows from investing, operating, and financing activities

The organization that is primarily responsible for developing GAAP (Generally accepted accounting principles) for use by all U.S. companies is the

FASB (Financial Accounting Standards Board

Each video is between 4 and 6 minutes long

False

To review the recorded entries, click on "___________".

View General Journal

Identify which items belong on the statement of owner's equity

Withdrawals, beginning owner capital and ending owner capital

Every cell highlighted in blue will

accept, but not require, input

Identify which items belong on the income statement

Revenues, expenses and net income

If you click on 'Learn About This' after answering a question, you will be brought to the top of the sub-section where that concept can be found. If you click on 'Learn About This' before answering the question, you will be brought to the exact section where the concept is discussed

False

The four basic financial statements are

Income Statement, Statement of owner's equity, Balance Sheet, and Statement of cash flows.

SmartBook 2.0 allows you to start your active learning experience by either reading or by jumping right in to start answering questions.

True

The learning objective is at the top of each screen

True

The investment that would most likely have the lowest expected return is an investment in

US Treasury bonds

The organization that is responsible for issuing International Financial Reporting Standards (IFRS) is the

IASB (International Accounting Standards Board

Assume your professor has given you 60 minutes to complete a specific assignment. You have worked on the assignment for 45 minutes but have not yet completed the assignment. A friend stops by and asks you to go out for a couple of hours. What should you do?

Tell your friend to go away for 15 minutes

The most important topics in text are initially highlighted for you. You can navigate through the highlights by clicking the 'Concepts' (forward and back) arrows.

True

When preparing journal entries, the account titles are selected using either the dropdown menu (if available) or by keying in the account titles.

True

Return on assets measures a company's ability to generate an adequate return on its investment in:

assets

The Concept Overview Video assignments are organized

by learning objective

The return on assets for your small business was 11.2% last year and 12.6% this year. Your return on assets:

improved

At the top of the screen, questions 3. 4. and 5 are outlined with a chain. This indicates that

questions 3, 4, and 5 are based on the same set of data

Identify which items belong of the balance sheet

Cash, accounts receivable, and owner capital

If available, clicking on "Hint" will take you to a video that steps you through the exact question you are working on with a different set of numbers

True

In some cases, the financial statement headings will require additional input

True

Once you have completed your assignment, you will see your progress, accuracy, and a list of the most challenging concepts before returning to you Connect assignment

True

The message "Answer is complete and correct" in "Check my Work" indicates that full credit has been earned for that question

True

The question map indicates in yellow any questions that have been skipped

True

There is one knowledge check associated with each video

True

There may be several parts to each learning objective

True

To see a quick overview of an assignment, click on the blue arrow on the far right-hand side of the screen

True

There is no way to know if your assignment is complete

False

During its first year of operations, Mario Lupo personally invested $15,000 in his business, Lupo Company. Mario withdrew $2,000 for personal use. Lupo company earned $35,000 or revenues and incurred $23,000 of expenses. At the end of the year, Lupo Company's equity totaled:

$25,000

#1 Happenings that affect the accounting equation #2 Exchanges of value between two entities #3 Exchanges within an entity

1. Events 2. External transactions 3. Internal transactions

#1 A company records the expenses incurred to generate the revenue reported. #2 Revenue is recognized when goods are provided to the customer at the amount expected to be received #3 A company reports the details behind financial statements that would impact user's decisions. #4 Accounting information is based on actual cost.

1. Expense recognition principle 2. Revenue recognition principle 3. Full-disclosure principle 4. Measurement principle

#1 Presumes that the business will continue operating in the future. #2 A business is accounted for separately from other business entities and its owner #3 Transactions and events are expressed in units of money. #4 The life of the company can be divided into specific time periods.

1. Going-concern assumption 2. Business entity assumption 3. Monetary unit assumption 4. Time period assumption

#1 Acquiring resources (assets) that an organization plans to use to acquire and sell its products or services #2 Resources contributed by creditors #3 Disposing of resources (assets) that an organization uses to acquire and sell it products or services #4 Sales and revenues #5 Resources contributed by the owner along with any income the owner leaves in the organization

1. Investing 2. Financing 3. Investing 4. Operating 5. Financing

Rosalind Company reported revenues of $111,500, expenses of $92,545, and net income of $18,955 for the year. Assets totaled $200,000 at the beginning of the year and $246,000 at the end of the year. The company's return on assets for the year (round the percent to one decimal) is:

8.5%

Assume your professor has given you unlimited time on a specific assignment and you have completed some, but not all, of the assignment. A friend stops by and asks you to go out for a couple of hours. What should you do?

Click "Save and Exit". Then, complete the assignment and click "Submit Assignment" before the due date

It is optional to indicate how confident you are in your answer (High, Medium, Low) before you submit your answer(s)

False

When preparing a journal entry, the credits must be listed before the debits

False

When you have completed a journal entry, and want to advance to the next journal entry within the problem, you click on "_____________".

Record entry

On January 31, Jean Consulting Company receives a bill for that month's utilities in the amount of $500. Jean sets is aside because she does not plan to pay the bill until its due date of February 15. What effect, if any, does this event have on the company's accounting equation as of January 31?

The business must record this event, which would increase liabilities and decrease equity on January 31

After getting some questions wrong, you must click on a resource such as 'Learn About This' to learn more about the concept before moving forward.

True