Accounting 1 Exam 1

Machinery and equipment

Which one of the following are non current assets? a. Machinery and equipment b. Accounts Receivable c. Inventories d. Unearned Revenue

Balance sheet and statement of cash flows

Which one of the following financial statements show the end of the year cash balance for a business entity?

Stockholders' equity

Which one of the following items is a classification on the Classified Balance Sheet? a. Operation Accounts b. Stockholders' Equity c. Revenues and Expenses d. Net Income and Dividends

Inventory

All of the following accounts have normal credit balances except: a. Accounts Payable b. Unearned Revenue c. Common Stock d. Inventory

Service revenue

All of the following have accounts have normal debit balances except: a. Accounts Receivable b. Dividends c. Supplies Expense d. Service Revenue.

Income statement for the year ended December 31, 2013

Which of the following is the correct date format for the financial statement heading?

Financial Accounting Standards Board (FASB)

Which of the following organizations is primarily responsible for establishing GAAP in the United States?

Assets are initially recorded using the historical cost principal

Which of the following statements is true concerning assets?

2,000,000

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

Both relevant and reliable

In order for accounting information to be useful in making informed decisions, it must be:

700,000

On January 1st, 2012, a company reported assets of $1,000,000 and liabilities of $600,000. During 2012, assets decreased by $100,000 and stockholders' equity decreased by $200,000. What is the amount of liabilities at December 31, 2012?

$850,000

Refer to Bargain Spot Fabrics: What amount should the company report on its balance sheet for total assets?

$26,000

Refer to Beard Marine. What was the balance of Retained earnings at January 1, 2013? Net Income: 100,000 Dividends: 6,000 Retained earnings @ December 31, 2013: 120,000

Accounts payable

Refer to HVAC Service. The Journal entry to record payment for the office equipment and supplies will include a debit to:

Cash

Refer to HVAC Service. The Journal entry to record payment of the salaries will include a credit to:

Debit: Cash - 500 Credit: Unearned Revenue - 500

Refer to Hesson Properties. What journal entry is required to record the cash collected in advance?

Debit: Equipment - $1,500 Credit: Accounts Payable - $1,500

Refer to Hesson Properties. What journal entry is required to record the purchase of the carts?

Expenses

The Resources used to earn revenues during a period are called:

Setting accounting rules for publicly traded companies in the United States

The Securities Exchange Commission (SEC) is concerned with:

To provide useful information for decision making

What is the primary objective of financial reporting?