Signin/Signup
Signin/Signup
Info
Warning
Danger

Accounting Answers, Flashcards, Essays and Textbook Solutions

The hard task of handling college homework is one of the most common challenges in the path of student success. No student ever says, "Hey I love homework! Give me more!" (However nerdy they are) Yet, it is an unavoidable part of your college experience.

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
1. In the accounting cycle, closing entries are prepared before adjusting entries.  2. Temporary account balances are reduced to zero by closing entries.  3. Closing entries deal primarily with the balances of permanent accounts.  4. The only accounts that are closed are income statement accounts.  5. Closing entries result in the transfer of net income or net loss into.
29 Views
View Answer
11.Following are the total assets and liabilities at the beginning and end of the year for Maren Corporation: AssetsLiabilities Beginning of the year$70,000$45,000 End of the year130,00040,000 Determine the net income or loss for the year in each of the following situations: a. The stockholders made no investments in the business and no dividends were.
23 Views
View Answer
23. Assume the direct method is used to compute net cash flows from operating activities. For this item extracted from the financial statements—Gain on Sale of Investment—indicate the effect on cash flows from operating activities by choosing one of the following: A. Gain on sale is added to other cash flows to arrive.
25 Views
View Answer
87. An advantage of SaaS is A. low acquisition costs.B. shared web infrastructure with multi-tenants.C. increased internal support staff.D. increased data security and internal controls. 88. Today’s MIS is designed to support  A. lean operations.B. activity-based management (ABM).C. total quality management (TQM).D. all of these options. 89. Which of the following MIS systems is a costly, fully integrated database combining the management of all.
21 Views
View Answer
119. The Retained Earnings, Dividends, and Income Summary accounts for Rick Company for the accounting period are presented below in T account form after the recording and posting of closing entries. Retained Earnings Dividends 12/31 100 1/1 500 3/1 100 12/31 300 12/31 300 6/1 100 9/1 100 Income Summary 12/31 1,000 12/31 900 12/31 100 From the T accounts, determine the following:a. Total revenue for the periodb. Net income (or net loss)c. Total dividends.
18 Views
View Answer
31. The Adjusted Trial Balance columns of the work sheet are prepared by combining the Trial Balance and Adjustments columns of the work sheet.  32. When the Income Statement columns of the work sheet are initially totaled, they should be in balance.  33. When the Balance Sheet columns of the work sheet are initially totaled,.
23 Views
View Answer
125. From the following items in the Income Statement columns of the work sheet of Sailors Co. at December 31, 20x5, prepare the closing entries without explanations, assuming that a $100 dividend was paid during the period. Income Statement Debit Credit Service Revenue 6,000 Wages Expense 3,600 Rent Expense 1,200 Supplies Expense 600 Insurance Expense 300 Depreciation Expense-Buildings   500 _____ 6,200 6,000 Net Loss _____   200 6,200 6,200 General Journal Page 1 Date Description Post. Ref. Debit Credit 126. The Trial.
23 Views
View Answer
113. Indicate in the spaces below whether each of the following entries appears to be an adjusting entry (AE) or a closing entry (CE). Description Debit Credit ___ a. Retained Earnings X      Income Summary X ___ b. Office Supplies Expense X      Office Supplies X ___ c. Retained Earnings X      Dividends X ___ d. Rent Expense X      Prepaid Rent X 114. Discuss a worksheet by answering the following questions:a. Why is the.
18 Views
View Answer
24.Use the following information to calculate at, or for the year ended, December 31, 2010 (a) net income, (b) retained earnings, (c) total liabilities and stockholders' equity, and (d) accounts receivable. Supplies$  1,000Cash$32,000 Wages Expense14,000Dividends16,000 Accounts Payable22,000Notes Payable4,000 Retained Earnings, December 31, 20098,000Patents7,000 Retained Earnings,   December 31, 2010? Accounts Receivable? Rent Expense6,000Common Stock20,000 Commissions Earned30,000 25.Use the following information.
24 Views
View Answer
31.The board of directors of a corporation is responsible for all of the following except a.arranging for major bank loans. b.authorizing contracts. c.carrying out the daily operations of the business. d.declaring dividends. 32.The audit committee is responsible for all of the following except a.engaging the company's independent auditors. b.assuring that reliable accounting records are kept. c.auditing the company's.
23 Views
View Answer
11.The processing stage of accounting is accomplished by a.reporting to decision makers. b.recording transactions. c.controlling and evaluating data. d.bookkeeping, computers, and information systems. 12.A company's ability to attract and hold investment capital ultimately depends on its a.budgeting. b.planning. c.liquidity. d.profitability. 13.The group of users of accounting information charged with achieving the goals of the business is its a.auditors. b.creditors. c.management. d.investors. 14.A primary user of.
30 Views
View Answer
16.Lin Wo Corporation had a balance in Retained Earnings on December 31, 2009, of $360,000. During 2010, the company reported a net income of $24,000 after taxes. During 2010, the company declared and paid cash dividends totaling $18,000. Prepare the company's statement of retained earnings for the year ended December.
22 Views
View Answer
117. Prepare closing entries for December without explanations from the following Income Statement columns of the work sheet of Duffy Cleaning Service, assuming that a $250 dividend was paid during the period. Income Statement Debit Credit Cleaning Revenue 1,560 Wages Expense 600 Rent Expense 200 Supplies Expense 150 Insurance Expense    20 ________ 970 1,560 Net Income   590 ________ 1,560 1,560 General Journal Page 1 Date Description Post. Ref. Debit Credit 118. Prepare closing entries for December (omit explanations).
26 Views
View Answer
43. The Income Summary account A. appears on the balance sheet.B. appears on the income statement.C. is closed to the cash account to properly state cash at the end of the period.D. does not appear in the financial statements. 44. Which of the following accounts is not closed during the closing process? A. Common StockB. Commissions EarnedC. Income SummaryD. Dividends 45. Which of the following.
23 Views
View Answer
21.An accounting measurement is concerned with all except which of the following? a.Money measure b.Financial position c.Separate entity d.Business transaction 22.The separate entity concept requires that a.the personal assets and liabilities of an owner not be shown on the business's financial statements. b.transactions that involve an exchange of value be kept separate from those that do not. c.tax.
23 Views
View Answer
109. Briefly distinguish between adjusting and closing entries. 110. What two broad purposes do closing entries serve? 111. Indicate with an X in the appropriate column the type of entry to be made to close the following accounts: Debit Credit Not Closed a. Design Revenue ____ ____ ____ b. Telephone Expense ____ ____ ____ c. Dividends ____ ____ ____ d. Cash ____ ____ ____ e. Depreciation Expense-   Building ____ ____ ____ f. Income Summary (assuming a   net income) ____ ____ ____ g. Retained.
18 Views
View Answer
121. Below are the adjusted accounts of Sterling Company for the month ended May 31, 20x5: Accounts Payable $  6,000   Office Equipment $75,000 Accounts Receivable 24,000   Prepaid Rent 11,000 Accumulated Depreciation-   Salaries Expense 18,000   Office Equipment 30,000   Retained Earnings 60,000 Cash 12,000   Dividends 7,500 Commissions Revenue 54,000   Utilities Expense 1,000 Depreciation Expense-   Office Equipment 1,500 In the journal provided, prepare Sterling's closing entries. Omit explanations General Journal Page 1 Date Description Post. Ref. Debit Credit 122. Below are.
20 Views
View Answer
TRUE/FALSE 1.The intentional preparation of misleading financial statements is referred to as fraudulent financial reporting. 2.Fraudulent financial reporting can result from the misapplication of accounting principles. 3.Criminal penalties cannot be imposed on those who prepare fraudulent financial statements. 4.The Sarbanes-Oxley Act orders the FASB to hold chief executives and CFOs responsible for the accuracy.
33 Views
View Answer
61.The statement of retained earnings discloses the dividends declared during the period. 62.The heading for a balance sheet might include the line “As of December 31, 20xx.” 63.The income statement is also known as the statement of financial position. 64.The statement of cash flows discloses significant events related to the operating, investing, and.
27 Views
View Answer
97. Describe how MIS aids in the evaluating stage of the management process. 98. Consider the following data for Sue Company:Net sales      $14,000Costs of quality:      Prevention      800      Appraisal      1,000      Internal failure      400      External failure      600     Compute the following quality ratios for Sue Company:a.       Total costs of quality as a percentage of salesb..
24 Views
View Answer
31.For reporting purposes, the personal assets and debts of a business owner should be combined with the assets and debts of the business. 32.Exchange rates for currency change daily according to the supply and demand for each currency. 33.Partnerships in the United States generate more revenue than sole proprietorships and corporations put.
29 Views
View Answer
93. Name and describe one respected technique made popular by Six Sigma that allows managers to understand and measure quality improvements. 94. Briefly identify the awards and organizations that promote quality in industry today. 95. What are the three steps managers take to create a TQM environment? 96. Name four categories of nonfinancial measures of quality and.
23 Views
View Answer
103. Which of the following is the most useful aid to the accountant in preparing closing entries? A. JournalB. Financial statementsC. LedgerD. Work sheet 104. A work sheet is useful for all except which of the following? A. Preparing financial statementsB. Recording closing entriesC. Recording adjusting entriesD. Recording transactions from source documents 105. The normal account balances for Retained Earnings and Dividends are A. credit and debit,.
19 Views
View Answer
63. The Retained Earnings, Dividends, and Income Summary accounts for Strike Company for the accounting period are presented below in T account form after the recording and posting of closing entries: Retained Earnings Dividends 12/31 100 1/1 1,500 3/1 100 12/31 400 12/31 400 6/1 100 9/1 100 12/31 100 Income Summary 12/31 700 12/31 600 12/31 100 The total amount of expenses for the period is A. $500.B. $700.C. $400.D. $100. 64. Information from the Income Statement columns of the work sheet of.
29 Views
View Answer
23.Use the following accounts and information to prepare, in good form, an income statement, statement of retained earnings, and balance sheet for Hometown Industries for the month ended July 31, 2010. Accounts Payable$3,100Land$35,000 Accounts Receivable1,400Notes Payable3,300 Buildings22,000Rent Expense2,400 Cash15,600Retained Earnings, June 30, 201057,900 Commissions Earned12,700Salaries Expense10,000 Common Stock20,000Supplies400 Dividends8,000 Insurance Expense2,200 .
27 Views
View Answer
123. Below are the adjusted accounts of Carter Harper Co. for the month ended July 31, 20x5: Accounts Payable $  5,000   Land $ 15,000 Accounts Receivable 36,000   Office Equipment 109,000 Accumulated Depreciation-   Salaries Expense 24,000   Office Equipment 40,000   Retained Earnings 89,000 Cash 11,500   Dividends 10,000 Commissions Revenue 75,000   Utilities Expense 1,500 Depreciation Expense-   Office Equipment 2,000 Prepare a post-closing trial balance. 124. From the following items in the Income Statement columns of.
22 Views
View Answer
21.The Federal Reserve Board is an example of an economic planner. 22.The primary external users of accounting information are investors and creditors. 23.The Securities and Exchange Commission is an accounting information user with a direct financial interest. 24.Taxing authorities are considered accounting information users with an indirect financial interest. 25.Creditors are those who lend.
28 Views
View Answer
41.The board of directors carries out the day-to-day operations of a corporation. 42.The number of authorized shares of stock may be less than the number of outstanding shares. 43.The management of a corporation is responsible for electing the board of directors. 44.In general, any partner can obligate the partnership to another party. 45.A partnership.
30 Views
View Answer
1. The principal difference between the indirect and the direct methods appears in the cash flows from investing activities section of the statement of cash flows.  2. The direct method converts each item on the income statement to its cash equivalent.  3. On a statement of cash flows prepared using the direct method, credit sales.
32 Views
View Answer
93. The process of crossfooting on the work sheet results in the A. Income Statement columns.B. Trial Balance columns.C. Adjusted Trial Balance columns.D. Adjustments columns. 94. An amount would not appear opposite the dividends account in which of the following work sheet columns? A. Trial BalanceB. Income StatementC. Balance SheetD. Adjusted Trial Balance 95. An important purpose of the work sheet is to A. accompany the financial.
21 Views
View Answer
41.A liability would not include an obligation to a.transfer assets. b.hire an employee. c.pay cash. d.provide services. 42.Which of the following assets could be described as nonphysical? a.Buildings b.Cash c.Patents d.Equipment 43.Which of the following financial statements is concerned with the enterprise at a point in time? a.Statement of retained earnings b.Income statement c.Statement of cash flows d.Balance sheet 44.Flores Realty Corporation had the following.
71 Views
View Answer
61.The purpose of an audit is to a.determine whether or not a company is a good investment. b.comply with income tax regulations. c.determine whether or not a company is a good credit risk. d.ascertain that the financial statements follow GAAP. 62.An auditor maintains no direct financial interest in the company he or she is auditing..
26 Views
View Answer
53. Failure to prepare closing entries will produce a misstated A. total liabilities figure on the balance sheet.B. total assets figure on the balance sheet.C. Retained Earnings account balance.D. Income Summary account balance. 54. Which of the following could not possibly be a closing entry? A. Debit Income Summary and credit Retained EarningsB. Debit Income Summary and credit DividendsC. Debit Retained Earnings.
37 Views
View Answer
21.What is independence, and why is it important for a CPA to maintain it when conducting an audit? 22.Use the following accounts and information to prepare, in good form, an income statement, statement of retained earnings, and balance sheet for Cray Enterprises for the year ended December 31, 2010. Accounts Payable$4,800Land$39,000 Accounts Receivable600Notes.
24 Views
View Answer
73. Closing entries will A. decrease the Retained Earnings balance.B. either increase or decrease the Retained Earnings balance.C. increase the Retained Earnings balance.D. not affect the Retained Earnings balance. 74. Which of the following accounts is not closed? A. Income SummaryB. DividendsC. Retained EarningsD. Interest Income 75. When there is a net loss, the entry to close the Income Summary account is A. debit Retained Earnings and.
24 Views
View Answer
21. The balances of all the permanent accounts are the same on the adjusted trial balance as they are on a post-closing trial balance.  22. There is sufficient information on a post-closing trial balance to prepare an income statement.  23. The post-closing trial balance will contain only temporary accounts.  24. When a company has net income, the.
23 Views
View Answer
  SHORT ANSWER 1.Distinguish between profitability and liquidity. 2.Explain why each of the following persons or groups would be interested in seeing the financial statements of a company. Also state whether each has a direct or indirect financial interest. a. Potential investor b. Internal Revenue Service c. A labor union d. Securities and Exchange Commission e. Potential creditor f..
18 Views
View Answer
32. Using the direct method, calculate the amount of cash payments for purchases.  Show your work. Cost of Goods Sold $302,000 Beginning Accounts Payable $ 12,000 Beginning Inventory 12,500 Ending Accounts Payable 11,200 Ending Inventory 16,000 Depreciation Expense 40,800 Ending Accounts Payable 10,000 Amortization of Intangible Beginning Prepaid Expenses 4,000    Assets 3,200 Ending Prepaid Expenses 5,600 Dividends Declared and Paid 8,800 33. Using the direct method, calculate the amount of cash payments for operating expenses. .
29 Views
View Answer
51.Use this information to answer the following question. Here is the balance sheet for Abbot Box Company, Inc.: Abbot Box Company, Inc. Balance Sheet December 31, 20xx AssetsLiabilities Cash$ 8,000  Accounts payable$16,000 Accounts receivable1,000 Land14,000Stockholders' Equity Building44,000  Common stock$40,000 Equipment 13,000  Retained earnings 24,000 Total stockholders' equity64,000 Total assets   $80,000  Total liabilities and stockholders' equity$80,000 If the balance in the Cash account were used.
23 Views
View Answer
  MULTIPLE CHOICE 1.The intentional preparation of misleading financial statements, known as fraudulent financial reporting, can result from all of the following except a.the misapplication of accounting principles. b.the manipulation of inventory records. c.fictitious sales or orders. d.recording a revenue that has been earned but not yet received. 2.All of the following statements are true about the.
19 Views
View Answer
100. The following data pertain to the past six months for Loveland Company:     ClintonCounty Division Hamilton County Division Warren County Division Company Totals Sales $2,200,400 $2,100,900 $2,300,100 $6,601,400 Appraisal costs $    41,340 $    20,980 $    44,210 $  106,530 External failure costs 37,980 53,560 23,450 114,990 Internal failure costs 31,100 49,780 28,450 109,330 Prevention costs       44,680       18,880       60,120    123,680 Total costs of quality $  155,100 $  143,200 $  156,230 $  454,530      Evaluate the three divisions' programs by:a.       Computing the costs.
25 Views
View Answer
127. Using the following information and the trial balance accounts and balances in the work sheet provided, complete the work sheet.a. Expired insurance totals $8.b. Of the unearned revenue, all has been earned by the balance sheet date.c. Estimated depreciation of equipment is $6.d. Accrued wages equal $6.e. Unused supplies on.
40 Views
View Answer
13. If the direct method is used to prepare a statement of cash flows, the cost of goods sold from the income statement will be adjusted A. for changes in inventory to arrive at net purchases.B. for changes in accounts payable to arrive at cash payments for purchases.C. Both of these choices. 14. If the direct method.
24 Views
View Answer
11.The terms bookkeeping and accounting are synonymous. 12.A company's management information system is a subsystem of its accounting information system. 13.The modern definition of accounting focuses on the role of accounting in making economic decisions rather than on how to do accounting. 14.Two major goals of business are to achieve profitability and to.
27 Views
View Answer
83. The post-closing trial balance would not include which of the following accounts? A. Unearned Legal FeesB. Accumulated Depreciation–Office EquipmentC. DividendsD. Retained Earnings 84. The post-closing trial balance differs from the adjusted trial balance in that it does not A. take into account dividends.B. take into account adjusting entries.C. include income statement accounts.D. include balance sheet accounts. 85. The post-closing trial balance contains A. neither permanent accounts.
24 Views
View Answer
51.Net income is another term for revenues. 52.Cash is another term for retained earnings. 53.Contributed capital appears in the stockholders' equity section of a corporate balance sheet. 54.Revenues have the effect of increasing contributed capital. 55.Dividends are an example of an expense. 56.The retained earnings figure is typically divided into par value and additional paid-in.
27 Views
View Answer
71.The declaration of a dividend will reduce net income. 72.The title “supplies” will appear as an expense on the income statement. 73.Generally accepted accounting principles encompass the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. 74.The International Accounting Standards Board is the primary and most important determinant.
23 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*