Pt 1 Small Business Exam ch 1234

If during the year total assets increase by $85,000 and total liabilities decrease by $21,000, by how much did owner's equity increase/decrease?

$106,000 increase (85000+21000)

GAAP(Generally Accepted Accounting Principles) are developed by what body?

FASB (Financial Accounting Standards Board)

A form of the partnerships business entity is

LLP. (limited liability partnership)

Which of the following is a true statement in regards to the International Accounting Standards Board?

The IASB deals with issues caused by the lack of uniform accounting principles existing in different countries

Identify the form of business that is considered a separate legal entity.

a corporation

The financial statements submitted to the SEC by a corporation must be __________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

audited

The review of financial statements to assess their fairness and adherence to GAAP is

auditing.

Which of the following is NOT an activity performed by managerial accountants?

conducting independent audits of financial statements

Which of the following is NOT part of the process of accounting for financial information?

identifying

Which of the following is NOT a goal of an accounting system?

to interpret the relative success of a business through the examination of data about its financial affairs

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $11,450; Prepaid Insurance, $510; Equipment, $26,400 and Cash, $21,750. On the same date, SloMo owed the following creditors: Simpson Supply Company, $17,200; Allen Office Equipment, $14,700. The total assets for the SloMo Delivery Service are:

$60,110 =( 11450(Accounts receivable)+510(Prepaid Insurance)+26400(Equipment)+21750(Cash)

The following are all (US) government agencies except the

AICPA.( Association of International Certified Professional Accountants)

The Financial Accounting Standards Board has the authority to develop generally accepted accounting principles. Choose the option below that contains the steps used by the FASB in developing GAAP.

steps include: issuing a discussion memorandum, issuing an exposure draft, and issuing a statement of principle.