chapter one

the financial statement that summarizes the financial position of a company is the

balance sheet

can we afford to give our employees or pay raise

internal user

keeping a systemiv chronological Diary of events that are measured in dollars and cents is called

Recording

the primary accounting standard-setting body in the United States is the

Financial Accounting Standards Board

Fayette company includes in its accounting records only transaction data that can be expressed in terms of money

account method: correct principal assumption: monetary unit assumption

Tina company owns buildings that are worth subsequently more than original cost in effort to prove more relevant information Tina reports the buildings at fair value and it's according reports

accounting method: incorrect principal/assumptions :cost principle

Omar Shariff, president of Omar's Oasis, records his personal living costs as expenses of Oasis.

accountingmethod: incorrect principal/assumption: economic entity assumption

Vaughn eyes downtown Diner received a bill of 730 from the Monte wine advertising agency. The owner A. A. Bounty is postponing payment of the bill until later date the effect on specific item in the basic accounting equation is

an increase in accounts payable and a decrease in retained earnings

all the financial statements are for a period of time except the

balance sheet

swiftly company buys a 20 1500 van on credit the transaction will affect the

balance sheet only

the ending retained earnings amount is shown on

both the balance sheet and the retained earnings statement.

A net lost will result during the

expense exceed revenues

did the company earn a satisfactory

external user

how does the company's profitability compared to other companies

external user

will the company be able to pay a short-termdebts

external user

customers, Internal Revenue Services, labor unions, Securities and Exchange Commission suppliers are

external users

the organization's primary responsible for establishing General acceptance accounting principles is are the

fasb and sec

the primary purpose of the statement of cash flow is to report

information about cash receipts and cash payments of a company

do we need to borrow in the near future

internal user

what does it cost us to manufacture each unit product

internal user

what products should we emphasize

internal user

marketing manager production supervisor store manager Vice President of Finance

internal users

internal users of accounting information include all of the following except

investors

Vaughn company purchased 1430 of equipment from Monte Inc. for cash. The effect on the components of the basic accounting equation of Vaughn company is

no charge in total asset

a proprietorship is a business

owned by one person

auditing is

the examination of financial statement buy a CPA in order to express an opinion of their fairness