ACC 201 - INTRODUCTION TO FINANCIAL ACCOUNTING

In the first month of operations for Bramble Industries, the total of the debit entries to the cash account amounted to $36700 ($16900 investment by stockholders and revenues of $19800). The total of the credit entries to the cash account amounted to $23200 (purchase of equipment $8500 and payment of expenses $14700). At the end of the month, the cash account has a(n)

$13500 debit balance.

In the first month of operations, the total of the debit entries to the cash account amounted to $1160 and the total of the credit entries to the cash account amounted to $750. The cash account has a(n)

$410 debit balance.

As of June 30, 2022, Sunland Company has assets of $108000 and stockholders' equity of $41000. What are the liabilities for Sunland Company as of June 30, 2022?

$67000

Management could determine the amounts due from customers by examining which ledger account?

Accounts Receivable

Callison Company performs the following accounting tasks during the year. Accounting is "an information system that identifies, records, and communicates the economic events of an organization to interested users." Categorize the accounting tasks performed by Callison as relating to either the identification, recording, or communication aspects of accounting.

Analyzing and interpreting information. - Communicates Classifying economic events. - Records Explaining uses, meaning, and limitations of data. - Communicates Keeping a systematic chronological diary of events. - Records Measuring events in dollars and cents. - Records Preparing accounting reports. - Communicates Reporting information in a standard format. - Communicates Selecting economic activities relevant to the company. - Identifies Summarizing economic events. - Records

Because of automation, which component of product cost is declining?

Direct labor

Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting and which characteristics are more closely associated with managerial accounting.

General-purpose reports - Financial accounting Reports are used internally - Managerial accounting Prepared in accordance with generally accepted accounting principles - Financial accounting Special purpose reports - Managerial accounting Limited to historical cost data - Financial accounting Reporting standard is relevance to the decision to be made - Managerial accounting Financial statements - Financial accounting Reports generally pertain to the business as a whole - Financial accounting Reports generally pertain to subunits - Managerial accounting Reports issued quarterly or annually - Financial accounting

Managerial accounting is used in each of the following types of businesses except

Managerial accounting is used in all types of firms.

Accountants rely on a fundamental business concept―ethical behavior―in reporting financial information.

True

The primary purpose of a trial balance is to prove the mathematical equality of the debits and credits after posting.

True

A trial balance will not balance if

a journal entry is only partially posted.

Services provided by a public accountant include

auditing, taxation, and management consulting.

The ledger accounts should be arranged in

financial statement order.

The common characteristic possessed by all assets is

future economic benefit.

The starting point of the accounting process is

identifying economic events.

Retained earnings at the end of the period is equal to

retained earnings at the beginning of the period plus net income minus dividends.

The left side of an account is

the debit side.