Principles of accounting one

All business transactions can be stated in terms of

Changes in the elements of the accounting equation

The rights of owners of a corporation are called

Stockholders equity

On August 1, Harvey company offered to pay $13,500 for equipment that was advertised as being sold for $19,300 by Karon company. The equipment had a retail value of $23,400 on that day. On August 10, Karon company offered to sell that equipment for $15,200 and the Harvey company agreed to pay that price. At what value will the Harvey company record equipment on the books?

$15,200

Assets and owners equity of a company are 230,000 and 40,000 respectively. Determine liabilities using the accounting equation.

$190,000

Marvin's company negotiated the purchase of a new building for $420,000. Marvin paid a $180,000 cash down payment and will pay off the remainder over seven years. What effect does this transaction have on the accounting equation?

$240,000 net increase in assets and $240,000 increase in liabilities.

Get in the following information, determine the amount of cash on the balance sheet, assuming that the company has only three assets. Liabilities equal $3350; owners equity equals $27,000; supplies equal $2000; and land equals $24,500.

$3850

Call taste company recorded $6000 in sales on the account for the week. What effect does this transaction have on the accounting equation

$6000 increase in assets and $6000 increase on owners equity

Which of the following statements are not true? a. A business owners personal assets are considered part of owners equity. b. The owners equity is increased by the amounts invested by the owner and decrease by the withdraws of the owner c. The effect of every transaction is an increase or decrease in one or more of the accounting equation elements elements d. The two sides of the accounting equation are always equal

A business owners personal assets are considered part of the owners equity

Which of the following statements is not true? A. managerial accounting gathers the reports and information that is relevant to the decision making needs of management. B. Managerial accounting provides timely information to help managers make daily decisions. C. Managerial accounting provides information that is useful for external users, Such as creditors, when deciding whether to lend money to business. D. Managerial accounting information may include sensitive information not shared with those outside the organization.

C. Managerial accounting provides information that is useful for external users, Such as creditors, when deciding whether to lend money to the business.

Which of the following forms of business entities generate 90% of business revenues in the United States? proprietorships, corporations, partnerships, manufacturing companies

Corporations

Which of the following statements about GAAP is not true? a. GAAP impacts our companies report and what they report b. GAAP is the principles and concepts that the management of a company uses to record and report its financial information. c. GAAP allows a company's management to record and report data as they see fit. d. GAAP is a standard set of principles that allows for the comparison of financial performance.

GAAP allows a company's management to record and report data as they see fit

Which financial statement reports financial data based on the matching concept?

Income statement

________________Sell products purchased from other businesses.

Merchandising businesses

Emily owns three businesses: a dry cleaner, a market, and a candy store. The dry cleaner has revenue of $5,000; the market has revenue of $10,000; and the candy store has revenue of $7,000. Under the business entity concept, Emily should record

None

Owners equity can best be defined as the rights of

Owners

expenses reduce

Owners equity

Assets are the

Resources owned by the business

The business entity concept is important because

it limits economic data in the accounting system to data directly related to the activities of the business.

Included in the statement of owner's equity are

net income (loss) and withdrawals.

Paying an amount on an account reduces

the amount owed on a liability.