Accounting in Action

What are the three basic activities involved in the accounting process as described in the textbook?

Which of the following user groups is considered an internal user of accounting information?

The Sarbanes-Oxley Act (SOX) was passed by Congress in response to unethical financial reporting. What is a key requirement of SOX?

Which accounting principle dictates that assets should be recorded at their cost and continue to be reported at their cost over time?

The basic accounting equation is expressed as:

If a company has total assets of $93.8 billion and liabilities of $22.1 billion, what is the amount of its stockholders' equity?

Softbyte Inc. started by issuing common stock for $15,000 cash. What is the effect of this transaction on the accounting equation?

Which financial statement reports the revenues and expenses for a specific period of time?

What is the primary purpose of the statement of cash flows?

According to Appendix 1A, which area of accounting involves offering expert service to the general public and includes auditing, taxation, and management consulting?

The economic entity assumption requires that:

Which of these is NOT a form of business organization discussed in the chapter?

On September 1, Softbyte Inc. invested $15,000 cash for common stock. On September 2, it purchased $7,000 of equipment for cash. What is the balance of the Cash account after these two transactions?

Increases in stockholders' equity can result from which of the following?

What is the relationship between the income statement and the retained earnings statement?

What is the primary difference between bookkeeping and accounting?

Softbyte Inc. purchases $1,600 of supplies on credit. What is the effect on the accounting equation?

The claim of owners on the total assets of a corporation is known as:

What type of business is owned by one person and is often a small service-type business?

Which of the following would NOT be recorded in the accounting records of a company, according to the monetary unit assumption?

The financial statements of Softbyte Inc. shown in Illustration 1-10 are for what time period?

In the tabular summary for Softbyte Inc. (Illustration 1-9), what is the final balance of total assets and total liabilities plus stockholders' equity?

What are dividends?

According to the salary table in Illustration 1A-2, what is the high end of the salary range for a Chief Financial Officer in a Large Company?

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

If a company pays its $250 advertising bill from the Daily News in cash, how does this affect the accounting equation?

What is the net income for Softbyte Inc. for the month ended September 30, 2019, based on Illustration 1-10?

Which of the following best describes 'residual equity'?

What career field in accounting uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud?

Softbyte Inc. paid a cash dividend of $1,300. This transaction results in a decrease to which two accounts?

Which U.S. government agency oversees financial markets and accounting standard-setting bodies?

If a company's revenue is $36,000 and its total expenses are $22,000, what is its net income?

What is the term for resources a business owns that have the capacity to provide future services or benefits?

Softbyte Inc. performed services for $1,200 and received cash. How does this affect the accounting equation?

According to Illustration 1A-1, what is the low-end of the junior level (0–3 yrs.) salary for corporate accounting in a small company?

Which of these is an example of an external transaction?

If Virmari & Co. sells shares of common stock for $25,000 cash, what is the effect on the accounting equation?

The ending balance in retained earnings on the retained earnings statement is reported on which other financial statement?

Which business form has ownership divided into transferable shares of stock and offers limited liability to its owners?

What is the term for the standards of conduct by which actions are judged as right or wrong, honest or dishonest?

If a company purchases equipment for $7,000 by paying cash, what is the effect on total assets?

The balance sheet is often referred to as a 'snapshot' of a company's financial condition because it:

When a company performs services for customers but has not yet received payment, this results in an increase in:

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issue which sets of standards, respectively?

A corporation with a few stockholders that does not offer its stock for sale to the general public is known as a:

In the tabular analysis for Virmari & Co., the company paid a dividend of $1,000. How does this affect the accounting equation?

The total of all debits to the accounts must equal the sum of all the credits. This concept is the basis for the:

What is the total assets for Flanagan Corporation at December 31, 2019, based on the data in the 'DO IT! 5' exercise?

What is the primary characteristic of liabilities?

In the Softbyte Inc. example, which of the following is NOT an asset?