Acct 2201 chap 1 homework

Match the following organizational attributes in the left column with the organizational form in the right column. More than one organizational form may be associated with a given attribute. 1)Unlimited liability 2)Full control 3)Business income combined with owner(s) for income tax purposes 4)Relatively more difficult to establish 5) Easier to raise funds Match to the following: Sole proprietorship Partnership Corporation Sole proprietorship, partnership Partnership, cooperation

1)Unlimited liability - Sole proprietorship, partnership 2)Full control - Sole proprietorship 3)Business income combined with owner(s) for income tax purposes - Sole proprietorship, partnership 4)Relatively more difficult to establish - corporation 5) Easier to raise funds - corporation

Classify each activity as financing, investing, or operating: 1- Repay a loan from a bank 2- Sell merchandise from a storefront operation 3- Dispose of an old delivery truck 4- Pay rent on a company warehouse 5- Repurchase shares of stock from stockholders 6- Pay utilities

1- Repay a loan from a bank Answer: Financing 2- Sell merchandise from a storefront operation Answer: operating 3- Dispose of an old delivery truck Answer: investing 4- Pay rent on a company warehouse Answer: operating 5- Repurchase shares of stock from stockholders Answer: financing 6- Pay utilities Answer: Operating

The beginning and ending balances of retained earnings for the year were $30,000, respectively. If dividend payments during the year were $3,000, determine the net income or net loss for the year. Use a negative sign with your answer to indicate a net loss, if applicable.

$8,000

Establish the correct sequence of steps in the accounting measurement process. Record in a systematic fashion Identify revenant economic activity Quantify economic activity

1 -Identify revenant economic activity 2 - Quantify economic activity 3 - Record in a systematic fashion

Match the following with the type of activity: operating, investing, financing A- Day-to-day business activities B- Purchase of land for new warehouse C- Sale of merchandise inventory D- Obtain a new bank loan E- Payment of dividends F- Invest excess cash G- Purchase office supplies H- Sell old equipment that is no longer needed

A- Day-to-day business activities Answer: operating B- Purchase of land for new warehouse Answer: investing C- Sale of merchandise inventory Answer: operating D- Obtain a new bank loan Answer: financing E- Payment of dividends Answer: financing F- Invest excess cash Answer: investing G- Purchase office supplies Answer: operating H- Sell old equipment that is no longer needed Answer: investing

Identify whether the following statements are true or false A- U.S. GAAP is universally accepted in all countries, in the world. B- U.S. GAAP is established by the IASB. C- Once established U.S. GAAP is rarely, if ever, modified. D- The international counterpart to the FASB is the IASB.

A- False B- False C- False D- True

Identify each of the following activities as operating, investing, or financing A- payment of employee salaries B- repayment of a loan C- issuance of common stock D- purchase of equipment to manufacture a company's products E- sale of merchandise inventory F- investment of excess cash in the shares of another company

A- payment of employee salaries Answer: operating B- repayment of a loan Answer: financing C- issuance of common stock Answer: financing D- purchase of equipment to manufacture a company's products Answer: investing E- sale of merchandise inventory Answer: operating F- investment of excess cash in the shares of another company Answer: investing

Identify the type of accounting associated with each type of report: Managerial, Financial, Tax, combination as needed.

A. Budget for internal use by management- managerial B. Tax return for state income Taxes - tax C. Audited financial statements- financial D. Special reports for regulators of a public utility- combination as needed.

Match the following type of report with the most likely statement user: management, taxation authority, regulatory agency, or investor. A. Financial statements B. Tax return C. Annual budget D. Special report on a bank's financial health

A. Financial statements Answer: investor B. Tax return Answer: taxation authority C. Annual budget Answer: management D. Special report on a bank's financial health Answer: regulatory agency

Meet the following forms of business organization with the set of attributes that best describes that form of business: sole proprietorship, partnership, or corporation. A. Shared control, unlimited liability, tax advantages, increased skills and resources. B. Best for raising large amounts of funds, double taxation, limited liability, easiest to transfer ownership interests C. Sole ownership, easiest to establish, tax advantages, unlimited liability

A. Shared control, unlimited liability, tax advantages, increased skills and resources. Answer: Partnership B. Best for raising large amounts of funds, double taxation, limited liability, easiest to transfer ownership interests Answer: Corporation C. Sole ownership, easiest to establish, tax advantages, unlimited liability Answer: Sole proprietorship

Determine the missing amount in each of the following cases: Assets: $150,000 Liabilities: $92,000 Stockholders Equity: ______ Assets: _____ Liabilities: $21,000 Stockholders Equity: $42,000 Assets: $87,000 Liabilities: ____ Stockholders Equity: $61,000

Assets: $150,000 Liabilities: $92,000 Stockholders Equity: $58,000 Assets: $63,000 Liabilities: $21,000 Stockholders Equity: $42,000 Assets: $87,000 Liabilities: $26,000 Stockholders Equity: $61,000

The Sarbanes-Oxly Act of 2002 was enacted to help restore confidence in financial reporting. Which of the following was not part of the legislation? A- Severe penalties for fraudulent reporting B- A requirement for certification of the financial statements by top Management C- A new statement of social responsibility D- A report on controls to help prevent and detect errors in the reporting process

C- A new statement of social responsibility

Which of the following is not part of the triple bottom line reporting framework? A- economic bottom line B- social bottom line C- competitive bottom line D- environmental bottom line

C- competitive bottom line