Accounting in Action

According to the textbook, which of the following is NOT one of the three basic activities of accounting?

Who are considered the two most common types of external users of accounting information?

What is the primary objective of the Sarbanes-Oxley Act (SOX) as described in the chapter?

The historical cost principle dictates that companies record assets at their cost. If Best Buy purchases land for $300,000 and its fair value increases to $400,000 by the end of the next year, at what amount should the land be reported?

Which accounting assumption requires that the activities of an entity be kept separate and distinct from the activities of its owner and all other economic entities?

Which of the following represents the basic accounting equation?

In the expanded accounting equation, which two items increase owner's equity?

Softbyte starts its business when Ray Neal invests $15,000 cash. What is the effect of this transaction on the accounting equation?

Softbyte purchases computer equipment for $7,000 cash. How does this transaction affect the accounting equation?

Which of the following financial statements reports a company's assets, liabilities, and owner's equity at a specific date?

In the Softbyte example, the company performs $3,500 of app development services, receiving $1,500 in cash and billing the balance of $2,000 on account. What is the total effect on assets?

Which financial statement is prepared first because its result is needed to prepare the next statement?

What is the primary focus of managerial accounting?

A business organized as a separate legal entity under state corporation law and having ownership divided into transferable shares of stock is a:

Using the data for Flanagan Company on page 48, what is the company's total assets at December 31, 2017?

Using the data for Flanagan Company on page 48, what is the net income for December 2017?

Using the data for Flanagan Company on page 48, and knowing that beginning owner's equity was zero, what is the ending owner's equity at December 31, 2017?

What is the primary difference between bookkeeping and accounting?

According to the table on page 50, what is the estimated junior level (0-3 years) salary range for a position in corporate accounting at a large company?

Which career area in public accounting involves examining company financial statements and providing an opinion on their accuracy?

What type of business entity is owned by one person?

In the Softbyte example, the company receives a bill for $250 for advertising but postpones payment. What is the effect on the accounting equation?

Which financial statement summarizes the changes in owner’s equity for a specific period of time?

If a company's total assets are $600,000 and its liabilities are equal to two-thirds of its total assets, what is the amount of its owner's equity?

Which of these are claims against a business's assets?

A withdrawal of cash by the owner of a business for personal use is known as:

If a company has total assets of $190,000 and owner's equity of $91,000, what is the amount of its total liabilities?

In the Softbyte tabular summary on page 20, what is the final balance of the Cash account after all ten transactions?

According to the Softbyte Income Statement in Illustration 1-9 on page 22, what was the company's net income for the month ended September 30, 2017?

According to the Softbyte Balance Sheet in Illustration 1-9 on page 22, what were the total liabilities and owner's equity?

In the Virmari & Co. tabular analysis on page 44, what is the effect of the owner investing $25,000 cash in the business?

In the Virmari & Co. tabular analysis on page 44, the company received $8,000 cash for services performed. What is the effect on the accounting equation?

What is the owner's claim on total assets called?

The resource a business owns that has the capacity to provide future services or benefits is called a(n):

What does GAAP stand for?

The primary accounting standard-setting body in the United States is the:

What is the main difference between a proprietorship and a partnership?

If a company has total liabilities of $120,000 and owner’s equity of $232,000, what is the amount of total assets?

The cost of assets consumed or services used in the process of earning revenue is the definition of:

Bayles Co. had total revenues of $90,000 and total expenses of $66,000 for the month of July. What was the net income?

An internal transaction is an economic event that occurs:

Which of the following is an example of an activity that does NOT represent a business transaction to be recorded?

If a company has a beginning owner's capital of zero, has an additional owner investment of $13,000, and no withdrawals, what was the net income for a period where ending capital is $17,000?

Which of the following is a characteristic of a corporation but not a proprietorship?

Which financial statement provides information about cash receipts and payments for a specific period of time?

What does the term 'residual equity' refer to?

In the Softbyte example, the company paid $1,700 for September expenses (rent, salaries, and utilities). What was the effect on the accounting equation?

The process of reducing the differences between U.S. GAAP and IFRS is referred to as:

If a company's financial statements report total assets of $57,000 and total liabilities of $32,000, what is the owner's equity?

What is the final step in the accounting process as summarized in Illustration 1-1?