A limited liability company may choose to be taxed as a partnership or corporation.
True
Accounting is called:
the language of
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Generally accepted accounting principles are not needed to ensure that financial information is fairly presented in the operating results and financial positions of firms.
False- They are needed
All of the following are goals of internal control except:
encourage noncompliance with management policies and applicable laws
the goals are to encourage compliance with management policies and applicable laws, prevent fraud, ensure reliability of accounting data, policies and procedures to safeguard assets
As the owner of a small business, you have decided to apply for a loan to expand your locations. Information that you most likely will need to provide to the lender include all but:
the average value of homes in your neighborhood
Fraud is intentional or reckless acts that result in the confiscation of a firm's assets or the misrepresentation of the firm's accounting data.
True
The names of three accounting jobs include all but:
Logistics manager
ARE accounting jobs- accounts payable clerk, accountant, bookkeeper
One requirement for becoming a CPA is to pass the:
Uniform CPA exam
Generally accepted accounting principles are accounting standards that are changed and refined in response to changes in the environment in which businesses operate.
true
Financial statements are:
accumulated financial data summarized in periodic reports.
All of the following are users of accounting information except:
search engines on a website
The Certified Bookkeeper exam includes all the parts below except:
Business law
ARE- inventory, payroll and depreciation, adjustments and error corrections
You plan to open a business with two of your friends. You would like to form a corporation, but your friends prefer the partnership form of business. All of the following are advantages of the corporation except:
the corporation's earnings are only taxed once.
An organization that has two or more owners who are legally responsible for the debts and taxes of the business is a:
partnership.
A nonprofit organization such as a public school is a(n):
social entity.
To become a Certified Bookkeeper, one must meet all requirements below except:
Pass a criminal background check.
ARE- sign a code of ethics, pass the national certified bookkeeper exam, submit evidence that you satisfy the experience requirements for the designation
The CPA designation stands for:
Certified Public Accountant
Generally accepted accounting principles are developed by the Financial Accounting Standards Board (FASB) through proposed statements and solicitation of feedback from interested individuals, groups, and companies. Subsequently, the FASB evaluates the opinions received and votes on the statements.
True.
The organization that has the final say on financial accounting issues faced by publicly owned corporations is the:
Securities and Exchange Commission.
Amounts that a business must pay in the future are known as:
accounts payable.
What information is contained in the income statement?
revenues and expenses for a period.
Oriental Rugs has no liabilities. The assets and owner's equity balances are as follows.
What is the balance of Supplies?
Cash$150,000
Office Equipment$50,000
Supplies ????
Johnny Johnson, Capital$230,000
30,000
What information is contained on the balance sheet?
assets, liabilities, and owner's equity on a specific date.
U Fix It Hardware had revenues of $105,000 and expenses of $60,000. How does this affect owner's equity?
$45,000 increase
Home Interiors has assets of $120,000 and liabilities of $45,000. What is the owner's equity?
$75,000
Pauline Palmer began a new business by depositing $100,000 in the business bank account. She wrote two checks from the business account: $20,000 for office furniture and $5,000 for office supplies. What is her financial interest in the company?
$100,000
Which transaction below increases an asset and the owner's equity?
a sale of merchandise on credit.
A business transaction is:
any financial event that changes the resources of the firm.
Zena Brown has the following balances in its assets, liability, and owner's equity accounts.
What is the balance of Cash?
Cash ????
Office Equipment$26,500
Accounts Payable$30,300
Zena Brown, Capital$115,700
119,500
What information is included in the financial statement headings?
the firm's name (who); title of the statement (what); time period covered (when).
All the following information is contained on the statement of owner's equity except?
liabilities at the beginning and end of the period.
Elizabeth Tolliver purchased a computer for $6,700 on account for her business. What is the effect of this transaction?
Equipment increase of $6,700 and Accounts Payable increase of $6,700.
Precision Drilling has the following balances in its assets and liability accounts.
What is the balance of Avion Canada, Capital?
Cash$175,000
Office Equipment$53,500
Accounts Payable$27,900
Avion Canada, Capital ????
200,600
What effect do withdrawals have on the basic accounting equation?
decrease the owner's equity in the business.
If an owner gives personal tools to the business, how is the transaction recorded?
This is an additional investment by the owner recorded at the fair market value of the tools.
The normal balance side for asset, liability, and owner's equity accounts is:
left, right, right respectively.
Errors in the Parker Interiors trial balance include all items below except:
Total debits and credits should be equal
Which account has a normal debit balance?
Jeffery Wells, Drawing
The normal balance of an account is the:
increase side of the account.
The sum of several entries on either side of an account that is entered in small pencil figures is a:
footing.
The company owner took $5,000 cash for personal use. What is the entry for this transaction?
Debit Caleb Parker, Drawing and Credit Cash
The Richey Company purchased new equipment for $40,400 from Office Supplies, Inc., to be paid in 30 days. Which of the following is correct?
Equipment is increased by $40,400; Accounts payable is increased by $40,400.
What is the increase side for Cash; Accounts Payable; and Trayton Eli, Capital?
left, right, right respectively
Find the balance of the Cash account:
Cash-+72,00024,000
- -44,00010,000 10,400 4,700
66,900
An error in which the digits of a number are switched, for example 571 is recorded as 517 is an example of a:
transposition.
The trial balance includes all the following except:
income or loss for the period.
Based on the accounts reflected below, the missing value for Equipment for the fundamental accounting equation to be in balance is what amount? Assume that all accounts have normal balances.
Cash—$30,800
Accounts Payable—$20,000
Jack Carter, Capital—$60,000
Equipment—$XX,XXX
Supplies—$9,200
$40,000
Increases are recorded on which side of asset, liability, and owner's equity accounts?
debit, credit, credit respectively
An error in which the decimal point is misplaced, for example when 317 is written as 3.17 is an example of a:
slide.
Posting references are made in ledger accounts and in the journal to:
both indicate the entry has been posted and ensure against posting the same information twice are correct.
In a compound journal entry:
both if two accounts are debited at least one account must be credited and total debits must equal total credits are correct.
Checks and invoice numbers are included in the journal entry description to:
both provide an audit trail and trace information through the accounting system are correct.
The general ledger organizes accounting information in:
account order.
The journal is referred to as the:
record of original entry. [Show Less]