Accounting Essay 7

At the end of 2011, retained earnings for the Bisk Company was $1,750. Revenue clear by the political party in 2011 was $2,000, expenses stipendiary during the period were $1,100, and dividends paid during the period were $500. Based on this information alone, retained earnings at the beginning of 2011 was pic pic $850. picpic $1,350. pic $4,000. pic $2,150. GAAP stands for pic pic chiefly Authorized Auditing Principles pic Government Authorized Accounting Procedures pic Generally Applied Accounting Procedures picpic Generally Accepted Accounting Principles The total equity of Timberlake Company at the beginning of 2011 amounted to $3,500.During 2011 the company reported net income of $1,800 and paid a $500 dividend. If retained earnings at the end of 2011 is $2,200, what was beginning contri neverthelessed capital? pic pic $2,100 pic $3,100 pic $400 picpic $2,600 Which of the spotline could represent the effects of an asset source transaction on a companys financial statements? pic pic pic pic pic pic picpic pic pic pic The Mason Company is a manufacturer of fine home furnishings.Which term best describes Masons role in society? pic pic Regulatory authorisation picpic Conversion Agent pic Consumer pic Resource Owner Which of the following could describe the effects of an asset exchange transaction on a companys financial statements? pic pic pic pic pic pic picpic pic pic pic Which of the following groups has the primordial responsibility for establishing generally accepted throwawaying principles for business entities in the United States? pic pic U. S. Congress. pic Internal Revenue Service. picpic Financial Accounting Standards Board. pic International Accounting Standards Board. During 2011, Childress Company earned $800 of coin revenue, paid $400 of cash expenses, and paid a $200 cash dividend to its owners. Based on this information alone, pic pic net income amounted to $400. pic total assets increased by $200. pic pic cash inflow from operating activities was $400. pic all of these are correct. Dividends paid by a company are shown on the pic pic income statement. picpic statement of changes in stockholders equity. pic statement of cash flows. pic both b and c. Asset use transactions always involve the payment of cash. pic picpic True pic False The Sarbanes-Oxley Act includes several significant reforms that affect the auditing profession, but it did not reduce an audit firms ability to provide non-audit services to its audit clients. pic pic True picpic False Which of the following is not a common feature of honest misconduct? pic pic The capacity to dimensionnalize. pic The presence of an opportunity. pic The existence of pressure leading to an incentive. picpic The existence of a strong system of internal controls. After closing, only balance tack accounts have non-zero balances. pic picpic True pic False After closing, only balance sheet accounts have non-zero balances. pic picpic True pic False Policies and procedures designed to reduce the opportunities for fraud are lots called pic picpic internal controls pic accounting principles pic asset source transactions pic financial systems Aaronson Company experienced an accounting event that affected its financial statements as indicated below pic Which of the following accounting events could have caused these effects on ABCs statements? pic pic Recognized accrued salaries owed to employees. picpic Earned revenue on account. pic Issued common stock. pic Purchased equipment on account. The ethical standards for certified unexclusive accountants simply require that such accountants comply with applicable laws and regulations. pic pic True picpic False Which of the following is not a component of the fraud triangle? pic pic Rationalization pic insisting pic Opportunity picpic Trust The purpose of the accrual basis of accounting is to pic pic Improve the companys earnings per share. pic pic Report revenue when received. pic Improve the matching of revenue and expense in the proper period. pic Report expenses when cash disbursements are made. A liability account normally has a debit balance. pic pic True picpic False The financial statement proportionality that may be of greatest interest to a companys stockholders is the amount of its return on equity. pic picpic True pic False A high value of the debt to asset ratio may indicate that a company has a high level of debt risk. pic picpic True pic False Which of the following errors would cause the debit side of a foot race balance to be larger than the reference work side? pic pic Revenue earned on account was recorded with a debit to Cash and a credit to Revenue. pic Purchase of supplies on account was recorded with a credit to Supplies and a debit to Accounts Payable. picpic Land purchased with cash was recorded with a debit to the Land account and a credit to Accounts Payable. pic None of these. The Armstrong Corporation recorded a business event using T-accounts as follows pic Which of the following reflects how this event affects the companys financial statements? pic pic picpic pic pic pic pic pic pic pic When a company receives cash in advance from a customer, it should debit Cash and credit Accounts Receivable. pic pic True picpic False The left side of a T-account is known as the pic pic Claims side picpic Debit side pic Credit side pic Equity side Debits decrease asset accounts. pic pic True picpic False Double instauration accounting requires that every entry must include at least one debit and at least one credit. pic picpic True pic False KMR Company provided repair service of $2,800 to a customer who paid $1,300 and promised to pay the remainder next month. Which of the following journal entries correctly records this transaction? pic pic pic picpic pic pic pic pic pic