ACC2100-112 - Chapter 1A Smartbook

What is a shareholder?

An owner of a corporation

Given the statements below, choose the most accurate definition of dividends

Outflows of cash or other assets paid to the owners of a corporation

The recording of transactions and events is called

Recordkeeping

True or false: Dividends are resources paid to the owners of a corporation.

True

Dividends cause a(n) (increase/decrease) ______ in equity and are recorded directly in (common stock/dividends/equity) _______

decrease dividends

A company that loans money to an organization is a(n)

lender

The area of accounting that serves the decision-making needs of internal users is referred to as (select from: managerial/financial/research) _________ accounting.

managerial

The majority of accounting opportunities are in the area of _____ accounting.

private

Identify what accounting is by selecting the correct statement

Accounting is a system that identifies, records and communicates financial information

Identify the correct definition of an asset:

An asset is a resource that a business owns or controls

On 6/25, supplies costing $1,000 were purchased on credit, but only $400 of this amount was paid on 6/25. The remainder of the bill is owed on account. To record this transaction on 6/25: Supplies would be increased by _______ (1,000/400/600); Cash would be decreased by ______ (1,000/400/600) and Accounts Payable would be increased by ____ (1,000/400/600).

Blank 1: 1,000 Blank 2: 400 Blank 3: 600

Which statements below define equity? (Check all that apply.)

Claims of the owner(s) on the assets of the business. Equity is equal to assets minus liabilities.

A corporation's equity has two main parts. Identify these two parts.

Contributed capital Retained earnings

Expenses

Decrease equity and are the cost of providing products and services to customers

Dividends

Decrease equity and are the outflows of assets from the company to the shareholders

From the following statements, identify the correct definition of equity.

Equity refers to the claims of the owners on the assets of a business.

The definition of expenses includes which of the following statements? (Check all that apply.)

Expenses are the costs of providing products and services to customers. Expenses decrease equity.

The definition of expenses includes which of the following statements? (Check all that apply.)

Expenses decrease equity. Expenses are the costs of providing products and services to customers.

Identify the broad opportunity areas of accounting. (Check all that apply.)

Financial Taxation Managerial

This area of accounting includes business regulation and law enforcement

Government and not-for-profit agencies

Which of the following statements represent(s) how expenses affect equity? (Check all that apply.)

If expenses increase, then total equity decreases. Higher expenses result in lower total equity.

Common stock

Increase equity and are assets owners contribute to the business

Which statement below defines accounting?

It identifies, records, and communicates business transactions

This area of accounting is where employees work for businesses

Private accounting

This area of accounting includes offering tax advice and auditing services

Public accounting

Melton's Door Company pays rent on the building facilities of $5,000 on May 1. Show how to record this transaction in the accounting equation of Melton's Door Company.

Rent Expense will be increased.

Select internal users of accounting information from the choices below. (Check all that apply.)

Research and development managers Purchasing managers

Which of the statement(s) below define(s) an asset? (Check all that apply.)

Resources controlled by the business Resources with expected future benefits An amount owned

Which of the following statements are true regarding the effect of revenues on the equity of a business? (Check all that apply.) Multiple select question.

Revenues that increase equity have many forms, such as consulting services and commissions from services. Revenues cause equity to increase.

Given the statements below, choose the most accurate definition of owner investments.

Stock issuances

Given the following list of accounts, identify which are classified as assets. Select all that apply.

Supplies Equipment Land Accounts Receivable Cash

Given the following list of accounts, identify which are classified as liabilities. (Check all that apply.)

Taxes Payable Accounts Payable Wages Payable Notes Payable

Given the following lists of accounts, choose the one that contains only liabilities

Taxes Payable, Accounts Payable, Wages Payable

Which statements below define a liability? (Check all that apply.)

The company obligations to provide assets, products or services to others An amount owed to a creditor A creditor's claims against the assets of a business

Which of the following statements explain(s) how the accounting equation applies to businesses? (Check all that apply.)

The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners. The relation of assets, liabilities and equity is reflected in the equation. The equation states that Assets = Liabilities + Equity. The equation applies to all transactions and events.

Which of the following statements best represents the accounting equation?

The total of everything owned by a business must always equal the total of what the business owes to creditors and owners.

When supplies are purchased on credit it means that: (Check all that apply.)

a liability has been incurred. the business will pay for the supplies at a later time. the Accounts Payable account will be increased.

An internal user of accounting information is: (Check all that apply.)

a marketing manager. a user who is directly involved in managing and operating an organization. a human resource manager.

A process of analyzing data to identify meaningful relations and trends is called data

analytics, data analytics, analytic, or analysis

During September, Sally's Hair Salon purchased $900 of supplies on credit. In October, Sally's makes a payment of $200 on this bill. Record the October transaction into Sally's accounting equation by: (Check all that apply.)

decreasing Accounts Payable, $200. decreasing Cash, $200.

A customer of Landen Consulting Company makes a $400 payment of cash on a bill for services provided last month. Record the receipt of cash in the accounting equation of Landen Consulting by: (Check all that apply.)

decreasing Accounts Receivable, $400. increasing Cash, $400.

An external user of accounting information

does not directly run the organization

A(n) _____ user of accounting information does not directly run the organization

external

Owner investments cause a(n) (increase/decrease) _______ in equity.

increase

Revenues

increase equity from sales of products and services to customers

If a customer makes a partial payment of $100 on a service which has already been billed, you would record this transaction into the accounting equation by:

increasing Cash and decreasing Accounts Receivable.

Jackson's Catering Company provided cookies worth $3,000 to the local college. The college paid immediately. Record this transaction in Jackson's accounting equation by:

increasing Cash; increasing Revenues

On 8/1, supplies costing $500 were purchased on credit. Record this transaction in the accounting equation by:

increasing Supplies, and increasing Accounts Payable

On February 1, Russell's Consulting Services Company provided $1,000 of services to the local college. On February 1, Russell's collected $700, and the college will pay the balance next month. Record this transaction in the accounting equation on February 1 for Russell's Consulting Service by:

increasing both Cash and Accounts Receivable; and increasing Revenues

Users of accounting information can be divided into two main groups. These groups include:

internal and external

Managerial accounting is focused on the needs of

internal users

A lender (creditor):

loans money or other resources to a business

Each of the following are one of the four areas of accounting opportunities except

regulators

Equity is composed of contributed capital and ________

retained earnings

An owner of a corporation is called a

shareholder

A graphical presentation of data to help in understanding their significance is called data ______.

visualization, data visualization, or visualizations