accounting prep quiz 1

at the beginning of the fiscal year, the balance sheet showed assets of $2,728 and stockholders' equity of $1,672. during the year, assets increased $148 and liabilities decreased $76. stockholders' equity at the end of the year totaled.

end of the year total assets= $2,728+$148=$2,876 end of the year liabilities+ stockholder's equity must also equal $2,876 liabilities=$1056 at the beginning of year- $76= $980 at the end of the year stockholder's equity=$2,876-$980= $1,896

major classifications of accounting activity would NOT include

financial accounting, national accounting, cost accounting

cost accounting is a subset of which of the following

managerial accounting

the Statement of Changes in Stockholders' Equity shows

net income and dividends for the period

the purpose of the income statement is to show the:

net income or net loss for the period covered by the statement

A concept or principle that relates to transactions is:

original cost

which of the following is NOT a transaction to be recorded in the accounting records a company

receipt of a plaque recognizing the company's encouragement of employee participation in the United Way fund drive

the statement of cash flows:

shows how cash changed during the period.

more assets

stockholders' equity(SE)=paid in capital+ end balance of retained earnings

assets equation

Assets = Liabilities + stockholder's Equity

On January 31, a company's balance sheet showed NET ASSETS of $2,600 and liabilities of $700. Stockholders' equity on January 31 was:

$2,600

Inventory, $42,000; Long-term Debt 62,500; Common Stock $30,000; Accounts Payable $22,000; Cash $66,000; Buildings and Equipment $195,000; Short-term Debt $24,000; Accounts Receivable $54,500; Retained Earnings $102,000; Notes Payable (nine month) $27,000; Accumulated Depreciation $90,000. Total current liabilities on the balance sheet are:

$24,000+$27,000+$22,000=$73,000

Cash $26,000; Short-term Debt $42,000; Buildings and Equipment $840,000; Inventory, $88,000; Notes Payable $120,000; Accumulated Depreciation $220,000; Common Stock $160,000; Accounts Receivable $76,000; Retained Earnings $474,000; Accounts Payable $34,000. Total assets on the balance sheet are:

$26,000+$840,000+$88,000-$220,000+$76,000=$810,000

at the beginning of the year, paid-in capital was $164 and retained earnings was $94. during the year, the stockholders invested $48 and dividends of $12 were declared and paid. retained earnings at the end of the year were $104. net income for the year was:

104=94+net income-12 net income= 104-94+12 net income= $22

Inventory $42,000, Long term debt $62,500, common stock $30,000, accounts payable $22,000, cash $66,000, Buildings and equipment $195,000, short-term debt $24,000, accounts receivable $54,500, retained earnings $102,000, Notes payable (nine month) $27,000, accumulated depreciation $90,000

Current assets: $42,000+$66,000+$54,500 = $162,500

additional paid-in capital represents

The difference between the total amounts invested by the stockholders and the par or stated value of the stock.

The time frame associated with an income statement is:

a past period of time

The time frame associated with a balance sheet is:

a point in time in the past.

which of the following accounting methods accomplishes much of the matching of revenues and expenses

accrual accounting

Matching revenues and expenses refers to:

accurately reflecting the results of operations for a fiscal period.

the principle of full disclosure means that the reporting company must fully disclose

all necessary information to prevent a reasonably astute user of financial statements from being misled

which of the following entities would NOT require accounting information pertaining to their economic activities

all the above: social clubs, not-for-profit entities, state government, small businesses