Accounting 4A

Jacob's Chocolates had beginning retained earnings of $4,000; net income of $10,000; and dividends of $300, calculate the ending balance in the retained earnings account.

$13,700

Which of the following statements below lists the rules of entering transaction into the accounting equation?

The accounting equation must always remain in balance so that assets always equal the sum of liabilities and equity.

When recording transactions into the accounting equation, which of the following statements are correct? (Check all that apply.)

The accounting equation must always remain in balance. After recording the transaction, assets will always equal liabilities plus equity.

What are Generally Accepted Accounting Principles?

The concepts and rules that govern financial accounting practice.

Which of the following statements explain(s) how the accounting equation applies to businesses?

The relation of assets, liabilities, and equity is reflected in the equation The equation states that Assets = Liabilities + Equity The equation applies to all transactions and events The equation reflects that the total of what a business owns at any point in time will equal the total of what it owes creditors and owners.

Which of the following statements best represents the accounting equation?

The total of everything owned by a business must always equal the total of what the business owes to creditors and owners.

Dividends are resources paid to the stockholders.

True

A process of analyzing data to identify meaningful relations and trends is called data

analytics

The statement of retained earnings explains changes in equity from net income (or loss) and from any Blank______ over a period of time. (Select the accounts below which will correctly complete this question.)

dividends

An external user of accounting information

does not directly run the organization

According to the fraud triangle, the three factors that must exist for a person to commit fraud include __, __, and __.

pressure, opportunity, and rationalization

Sheldon Company had beginning retained earnings of $1,000, net income of $5,000, and dividends of $250. The ending balance in the retained earnings account is

$5,750

Describe the order in which a company prepares financial statements.

1. Income of Statement 2. Statement of Retained Earnings 3. Balance Sheet 4. Statement of Cash Flows

Boaz Company had beginning of year assets of $100 million and end of year assets of $120 million. Boaz's net income is $5 million. Calculate Boaz Company's return on assets. Round your answer to 1 decimal place.

4.5%

Identify what accounting is by selecting the correct statement.

Accounting is a system that identities, records, and communicates financial information

What is accounting?

Accounting records business transactions and communicates financial information.

Identify the correct definition of an asset:

An asset is a resource that a business owns or controls

Which list of accounts below, identifies only accounts that would appear on a balance sheet.

Common Stock, Equipment, Accounts Payable

The FASB conceptual framework consists of all the following except:

Concepts

A(n)_______ user of accounting information does not directly run the organization.

External

The __ is the first financial statement to be prepared

Income Statement

An employee that is having trouble paying his personal bills might exhibit the following fraud factor:

Pressure

All the following are part of the FASB conceptual framework:

Qualitative characteristics, elements, objectives, recognition and measurement.

Which of the statement(s) below define(s) an asset?

Resources controlled by the business, An amount owned, Resources with expected future benefits.

Identify which of the following lists of accounts would belong on the statement of retained earnings.

Retained earnings and Dividends

Given the accounts below, choose all of the ones that affect equity. (Check all answers that apply.)

Revenues Common Stock Expenses Dividends

Given the accounts below, choose all the ones that affect equity.

Revenues, Common Stock, Dividends, Expenses

Given the list of accounts below, identify which of them would appear on a balance sheet. (Check all that apply.)

Supplies Equipment Retained earnings, 12/31 Accounts Payable Cash

Generally accepted accounting principles (GAAP) wants information to have:

relevance, faithful representation

A graphical presentation of data to help in understanding their significance is called data

visualization