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Financial Accounting Assignment

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Question;Instructions: This assignment consists of (15) True or False, (20) Multiple choices, (5) Short Answer, and (1)Bonus Question.True or False (Circle One)1) Accounting is the information system that measures business activity, processes the data into reports,and communicates the results to decision makers. True or False2) Accounting is the language of business. True or False3) Managerial Accounting focuses on information for decision makers outside the company. True or False4) Outside investors often use accounting information to decide whether to invest in a business. True orFalse5) A business owner starts a new business and invests $6,000. This transaction results in an increase inthe corporations liabilities. True or False6) An expense transaction grows the business, increasing assets and stockholders equity. True or False7) An account is the detailed record of the changes in a particular asset, liability, or stockholders equity.True or False8) A journal is the chronological record of transactions. True or False9) Debit means right and credit means left. True or False10) In the United States, we use double entry accounting, which means we record the dual effects of eachtransaction. True or False11) An asset account is increased by a debit. True or False12) A stockholders equity account is increased by a debit. True or False13) When recording a transaction in a journal, the credit side is entered first, followed by the debit side.True or False14) The process of copying from the journal to the ledger is called posting. True or False15) A trial balance will usually report total debits that are not equal to total credits. True or FalseMultiple Choice (Circle One)16) Many organizations have contributed to the process of creating and/or using generally acceptedaccounting principles. Which of the following organizations has the primary responsibility for formulatingaccounting standards?A) FASBB) CMAC) AICPAD) SEC17) Which of the following is a licensed accountant who serves the general public rather than one particularcompany?A) CPAB) CMAC) AICPAD) SEC18) Accountants often refer to GAAP. What do the letters GAAP stand for when discussing accounting?A) Grandmas Awesome Apple PieB) Global Accommodation Accounting PrinciplesC) General Accurate Accounting PoliciesD) Generally Accepted Accounting Principles19) Accounting information may be generated for a variety of purposes. The key product(s) of accounting is(are) which of the following documents?A) Financial StatementsB) Remittance advicesC) SpreadsheetsD) Work papers20) Which of the following concepts (or principles) would be most likely to require that data be verifiable,that is, can be confirmed by an independent observer?A) Cost PrincipleB) Reliability ConceptC) Entity ConceptD) Going Concern Concept21) Which of the following is a correct accounting equation?A) Assets + Liabilities = Stockholders equityB) Assets = Liabilities + Stockholders equityC) Assets + Revenue = Stockholders equityD) Assets + Revenue = Liabilities + Expenses22) Assets are $150,000 and total liabilities are $90,000. What would total stockholders equity be?A) $180,000B) $300,000C) $240,000D) $60,00023) Assets are $270,000 and stockholders equity is $90,000. What would liabilities be?A) $60,000B) $360,000C) $180,000D) $270,00024) Services are performed. Payment is expected next month. How does this affect the accountingequation?A) Liabilities increase, stockholders equity decreasesB) Assets increase, stockholders equity increasesC) Assets decrease, stockholders equity decreaseD) Assets increase, stockholders equity decreases25) The assets and liabilities of Matt Wesley Corporation are as follows: Cash, $10,000, AccountsReceivable, $8,200, Supplies, $1,050, Land, $25,000, Accounts Payable, $6,350. What is the amountof stockholders equity? Select the closest answer.A) $21,500B) $44,430C) $50,780D) $37,72026) Which of the following is the detailed record of the changes in a particular asset, liability, orstockholders equity?A) JournalB) Trial BalanceC) LedgerD) Account27) Which of the following is the book (or print out) holding all the accounts?A) AccountB) Trial BalanceC) JournalD) Ledger28) Which of the following is the chronological record of transactions?A) LedgerB) AccountC) JournalD) Trial Balance29) Which of the following is a list of all the accounts with their balances?A) JournalB) Trial BalanceC) LedgerD) Account30) A business makes a cash payment of $12,000 to a creditor. Which of the following occurs?A) Cash is credited for $12,000B) Cash is debited for $12,000C) Accounts payable is credited for $12,000D) Both A and C31) A business completes services for $16,000 on account. Which of the following occurs?A) Cash is debited for $16,000B) Accounts receivable is debited for $16,000C) Service revenue is credited for $16,000D) Both B and C32) A business pays $500 cash for supplies. Which of the following occurs?A) Cash is debited for $500B) Accounts Payable is credited for $500C) Supplies is debited for $500D) Both B and C33) A business makes a payment of $1,200 on a note payable, consisting of a $200 interest payment and a$1,000 principal payment. Which of the following journal entries would be recorded?A) Cash is credited for $1,000, Interest Expense is credited for $200, and Notes Payable isdebited for $1,200.B) Notes Payable is credited for $1,000, Cash is credited for $200, and Interest Expense isdebited for $1,200.C) Cash is credited for $1,200, Notes Payable is debited for $1,000, and Interest Expense isdebited for $200.D) Notes Payable is credited for $1,200, Cash is debited for $1,000, and Interest Expense isdebited for $200.34) Which of the following journal entries would be recorded if a business received cash of $1,000 onaccount for services performed at an earlier date?A) Cash1,000Service Revenue1,000B) Accounts Receivable1,000Service Revenue1,000C) Cash1,000Accounts Receivable1,000D) Service Revenue1,000Accounts Receivable1,00035) A business purchased $200 of supplies on account and recorded he following journal entry:Supplies200Accounts Payable200Which of the following sets of ledger accounts reflect the posting of this transaction?Supplies AccountsPayableA)SuppliesAccountsPayableB)SuppliesAccountsPayableC)SuppliesAccountsPayableD)ShortAnswerQuestions36) Identifyallfinancialstatementsdiscussedinthiscourse.Provideabriefexplanationofthepurposeforeach.37) Yourcompanypurchasedapieceofequipmentwithapurchasepriceof$275,000.Theequipmenthasasalvagevalueof$35,000withausefullifeof5years.Calculatethedepreciationexpensetakeninyear6.38) Yourcompanypurchasedapieceofequipmentfor$100,000withasalvagevalueof$15,000withausefullikeof3years.Whatistheaccumulateddepreciationattheendof3years?39) Yourcompanypurchasedapieceofequipmentfor$575,000on1/1/2010withausefullifeof10yearsandasalvagevalueof$100,000.Calculatethebookvalueofthisassetasof12/31/2018.40) Requirements:1.2.3.4.5.6.7.RecordthefollowingtransactionsinthejournalofGCCConsulting.Explanationsarenotrequired.CreateTaccountsforeachtransaction(Usethenextblankpage)Prepareatrialbalancefortheendoftheperiod(Usethenextblankpage)PrepareanIncomeStatementPrepareaStatementofRetainedEarningsPrepareaBalanceSheetCalculatethecurrentratioSep.1received$35,000cashandissuedcommonstock.4Purchasedsupplies,$500,andfurniture,$2,800,onaccount.6PerformedServicesforalawfirmandreceived$2,500cash.7Paid$30,000cashtoacquirelandforafutureofficesite.10Performedserviceforaclientandreceivedtheirpromisetopaythe$1,000withinoneweek.14PaidforthefurniturepurchasedSeptember4onaccount.30PaidSecretaryssalary,$600.DateAccountsDebitCreditTheownerofPapasRealEstateneedstocomputethefollowingsummaryinformationfromtheaccountingrecords.A) TotalCashpaidduringSeptemberB) PaymentsonaccountduringSeptemberBalanceAccountCashAccountsPayableSolve.Showwork.Additional InformationSeptember 30, for the Month of2008 SeptemberAugust 30, 20088,0003,00010,000,00030Cash receipts of $65,000Purchases on account,$50,000

 

Paper#38952 | Written in 18-Jul-2015

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