Financial Accounting Semester Long Study Set

As of December 31st, Bogglesworth Company has assets of $4,500 and stockholders' equity of $3,000. What are the liabilities for Bogglesworth Company as of December 31st?

1,500

Harleys Insurance Company has assets of $5 million and liabilities of $3.5 million. What is the amount of stockholders' equity?

1.5 million dollars

Sheldon has the following year-end account balances: Accounts Receivable, $5,000; Supplies, $12,000; Equipment, $18,000; Accounts Payable, $17,000; Stockholders' Equity, $43,000. The Cash account balance was not available at year-end. Given the account balances listed, the balance in the Cash account should be...

25,000

Simon Company had the following summarized operations for the month of May: Revenues earned: for cash, $32,000; and on account, $18,000; and Expenses incurred: for cash, $5,000; and on account, $10,000. In addition, the company purchased Equipment for $8,000 on account and Supplies for $5,000 for cash. The net income for the month of May is...

35,00

At the beginning of the year, Tektron Company had total assets of $600,000 and total liabilities of $300,000. If the total assets increased $100,000 and the total liabilities decreased $70,000, what is the amount of stockholders' equity at the end of the year?

470,000

Highspire Architects, Inc. has assets, other than investment securities, that cost $60 million. The current market value of the assets is $85 million. The assets will be recorded and reported at

60,000,000

Patterson Company reported stockholders' equity of $75,000 at the beginning of the year. During the year, the company recognized net income of $15,000. Stockholders made an additional investment of $10,000 at midyear and received a $5,000 dividend at year-end. The stockholders' equity at the end of the year is...

95,000

Networth Bank is preparing its end of year financial statements, which will be distributed to shareholders. The CEO wants to include the results of the latest employee opinion survey to demonstrate the company has a good reputation. According to the monetary unit assumption, this information cannot be included because....

Activities that cannot be measured in monetary terms are not reported.

Ginni founded Waggstooth Manor Doggie Day Care and after a year in business, formed a partnership with her husband, Warren. Their friend, Phebe, is a shareholder with Networth Bank. In terms of personal liability, who is at greater risk? Why?

Ginni and Warren, because both partners have unlimited personal liability, regardless of who owns a larger percentage of the company.

According to the ________ a company can purchase an asset for $1,000 and despite an increase in value over time can continue to report the asset for $1,000.

Historical Cost Principle

Analysis of an ethical case is done by?

Identifying all of the stakeholders and how alternatives impact each.

NoKnotsense Hair Salon incorporated this year and is now an LLC. According to the economic entity assumption, the owner of the salon is now required to...

Keep the salon's economic records seperate from her own

The question "How much of our annual budget should we spend to advertise our new product line?" would most likely be asked by a(n)

Marketing Manager

During the past year, assets decreased by $5,000 and stockholder's equity increased by $2,000. What was the change in liabilities?

decrease of 7,000

Harley's Insurance Company needs to record its revenue for the last month. The company should include service revenues on the...

income statement as gross increase in stockholders' equity

If a company provides services on account, then stockholder's equity...

increases and an asset increases

Performing services on account will affect the components of the basic accounting equation by...

increasing assets and increasing stockholders' equity

The accountant for Flexon Industries is preparing the company's balance sheet. The accountant will list Liabilities before Stockholders' Equity on the balance sheet because...

liabilities refer to other economic entities, thus are required to be listed first by the Economic Entity assumption.

Bookkeeping, as opposed to accounting, usually only involves...

recording.

Accounting activities...

require identifying and reporting economic events.