Acct 250 Chp 1 & Accounting Cycle Review

December 31, 2017 post-closing trial balance.

A December 31, 2017 balance sheet could be prepared directly from the

$20544

Based on the account balances below, what is the total of the debit and credit columns of the adjusted trial balance? Service revenue $8480 Cash $4040 Unearned service rev. $8512 Salaries and wages exp. $1680 Common stock $624 Equipment $11840 Prepared ins. $1960 Depreciation exp $1024 Accum. depre. $2048 Retained earnings $880

not affect total assets

Bedrock Company received a payment on accounts receivable from a customer. Which of the following correctly describes the impact of this cash receipt? It will _______________

repayment of a $2,500 bank loan.

Bluebird, Inc. had a transaction that caused a $2,500 decrease in both assets and total liabilities. This transaction could have been a(n)

$9,200 debit balance.

Cargo Industries began the month with a $10,000 debit balance in the Cash account. During the month, the total of the debit entries to the Cash account amounted to $4,000 and the total of the credit entries to the Cash account amounted to $4,800. The Cash account has a

APB

Carolyn is looking over published accounting opinions based primarily on research studies. What organization is Carolyn researching?

Which of the following account balances will be the same on both the adjusted trial balance and the post-closing trial balance?

Common Stock

a user of financial statements.

Dave is an investor interested in buying shares in a new company. He is currently analyzing financial reports to make his decisions. Dave is an example of -a user of financial statements. -a resource. -the entity perspective. -capital allocation.

debit to Income Summary for $7,100.

During 2017, Carla's Crafts reported net income of $5,900 and Sales Revenue of $13,000. Carla's closing entries include a

credit to Dividends for $900.

During 2017, the Retained Earnings account for Brock Street Bakery increased by $5,000. Brock reported net income of $5,900 and Sales Revenue of $13,000. Brock's closing entries included a

$206

Given the following adjusted trial balance and assuming no errors were made, what is the amount of Common stock?

User groups often pressure the FASB to influence GAAP.

How are FASB and GAAP related when it comes to user groups?

The Codification works to omit any redundancies within GAAP.

How are the Codification and GAAP similar to one another?

The SEC requires companies to follow GAAP.

How are the SEC and GAAP related to one another?

paid off an existing note payable with cash.

If a company posted a debit of $5,000 to Notes Payable and a credit of $5,000 to Cash, it has most likely

$425

Jorge Company had the following transactions during 2017. • Sales of $4,500 on account • Collected $2,000 for services to be performed in 2018 • Paid $1,325 cash in salaries • Purchased airline tickets for $250 in December for a trip to take place in 2018 What is Jorge's 2017 net income using cash-basis accounting?

Kaitlyn will likely use GAAP, whereas Sean will likely use IFRS.

Kaitlyn runs a U.S. company that often does a lot of business with companies in London and Ireland. Sean runs a company in London that often does business with many companies in the U.S. What is implied here about their reporting standards?

Maci is preparing a formal financial statement, while Jon is engaged in financial reporting.

Maci is preparing the income statement for her company. Jon is preparing a report that needs to be filed with one of the government agencies the company reports to. What is implied here? -Maci is preparing a formal financial statement, while Jon is engaged in financial reporting. -Both Jon and Maci are preparing formal financial statements. -Both Maci and Jon are engaged in financial reporting. -Jon is preparing a formal financial statement, while Maci is engaged in financial reporting.

Accounts Payable

Management could determine the amounts due to suppliers by examining which ledger account?

Mara is following the entity perspective, whereas Ben is following the proprietary perspective.

Mara prepares the financial reports for her company. The assets in the reports are distinct from those of shareholders. Ben believes that financial reports should be tailored primarily toward shareholders. What is implied here? -Mara is following the entity perspective, whereas Ben is following the proprietary perspective. -Both Ben and Mara are following the proprietary perspective. -Both Ben and Mara are following the entity perspective. -Ben is following the entity perspective, whereas Mara is following the proprietary perspective.

the Codification Research System

Marci is accessing accounting principles in an online database that changes as the principles are updated. Everything is organized by topic, which makes her research easier. What is Marci using?

managerial accounting

Marissa is preparing a cash budget for the Chief Financial Officer. What is this an example of? -financial accounting -managerial accounting -financial reporting -capital allocation

the SEC

Morris is part of a government organization that is responsible for standardizing the information that companies present to stockholders. He reviews the financial reports from multiple companies within this organization's jurisdiction. What organization does Morris work for?

$26,900

On December 31, 2016 Jasper Enterprises had a retained earnings account balance of $432,800. During the year Jasper declared and paid a $20,200 dividend. At December 31, 2017, Jasper reported retained earnings of $439,500. What amount of net income (net loss) did Jasper report for 2017?

the entity perspective

Pam prepares the financial reports for her company. The company has a number of assets that are listed on the reports, but the assets of individual shareholders are considered to be distinct from the company itself and are not included. What is this an example of? -decision-usefulness -the proprietary perspective -stewardship -the entity perspective

the expectations gap

Paul is an accountant at a company that has recently issued its financial statements. The public feels that more information should be included in the statements, but Paul believes that he and the other accountants provided all of the information that they could. What is this an example of?

IFRS

Runa runs a company in Norway that is listed with a U.S stock exchange. What accounting standards will Runa's company likely use?

an ethical dilemma

Ted has come across a situation while preparing the financial statements for his company. He knows what the GAAP requirements are, but his boss wants him to understate expenses. What is this an example of?

adjusted trial balance

The ______________ is prepared to prove equality of the total debit balances and the total credit balances in the ledger after all adjustments have been made.

Jan. 15 Notes Payable 345 Equipment 345

The accountant for Lamps and More, Inc. should have recorded the following correct entry: Instead, she misunderstood the transaction and debited Notes Payable account incorrectly. Which of the following is wrong entry that was recorded pertaining to this transaction?

the difference between the balance of a plant asset account and the related accumulated depreciation account.

The book value is

a liability with a credit balance.

The classification and normal balance of the Accounts Payable account is

debit column of the post-closing trial balance is the same amount shown for Total Assets on the balance sheet.

The post-closing trial balance likely contains an error if the

The Wheat Committee ultimately led to the replacement of the APB.

What is the connection between the Wheat Committee and the APB?

Effective capital allocation leads to a healthy economy, whereas poor capital allocation can negatively affect the securities market.

What is the difference between effective capital allocation and poor capital allocation? -Effective capital allocation leads to a healthy economy, whereas poor capital allocation can negatively affect the securities market. -Effective capital allocation leads to fewer internal users, whereas poor capital allocation leads to more internal users. -Effective capital allocation leads to an influx in the securities market, whereas poor capital allocation can lead to a drop in internal users. -Effective capital allocation leads to fewer external users, whereas poor capital allocation leads to more external users.

It would be almost impossible to compare financial statements.

What would happen if there were no generally accepted accounting principles?

It can create a stressful work environment prone to conflict.

When companies concentrate primarily on maximizing the bottom line, what impact does it have on accountants?

Adjusted trial balance -beginning-of-the year balance for retained earnings Balance sheet -end-f-the year balance for Retained Earnings

Which of the following correctly depicts where each account balance will be displayed?

Cash of $430 received from a customer on account was posted as a debit of $340 to Cash and as a credit of $430 to Accounts Receivable.

Which of the following errors, each considered individually, would cause the trial balance to be out of balance?

Tom is looking at a set of documents for a company he wants to invest in; the information is presented clearly and all aspects of the company's financial operations are mentioned.

Which of the following would be an example of a user looking at general-purpose financial statements? -Dana is looking at two sets of documents for her company, both of which show only some of the financial operations of her workplace. -Tom is looking at a set of documents for a company he wants to invest in; the information is presented clearly and all aspects of the company's financial operations are mentioned. -Sal is a manager looking at the financial statements for the company, but they use a reporting practice he is unfamiliar with. -Kat is an investor looking over financial documents for a company; she feels that a number of things have been misrepresented in the documents.