Chapter 1

The two primary groups of financial resource providers for a business (conversion agent) are

Accountants establish measurement and reporting rules that business people use to facilitate communication of financial information. The financial accounting measurement rules used in the United States are referred to as

The information reported in financial statements is organized into categories known as elements. Which of the following categories is NOT a financial statement element

The accounting equation is defined as

Hammond Company borrowed $20,000 from Neptune Bank. How does this transaction affect the accounting equation?

As of December 31, 2015, Juneau Company had total cash of $155,000, notes payable of $85,600, and common stock of $52,400. During 2016, Juneau earned $36,000 of cash revenue, paid $20,000 for cash expenses and paid a $3,000 cash dividend to the stockholders. Assuming no change in notes payable and common stock, determine the amount of retained earnings as of December 31, 2016.

The land that Birmingham Company purchased on April 15, 2016, for $120,000 cash had an appraised market value of $135,000 on December 31, 2016. How does this change in the market value of the land affect the accounting equation?

Based on this information, what percentage of total assets was provided by investors?

Suarez Company purchased land for $115,000 cash. Which of the following best describes this transaction type?

Huang Company paid $25,000 cash for operating expenses such as salaries and rent during the current accounting period. Which of the following best describes this transaction type?

Which of the following financial statements matches the expenses with revenues that occur when operating a business?

On which of the following financial statements would you expect to find financing, operating, and investing activities?

Closing is the process of transferring the temporary account balances to the Retained Earnings account at the end of the accounting period. Which of the following are temporary accounts?

Buccaneer Corporation paid $6,000 in cash dividends to its owners. Which of the following answers in this horizontal financial statements model reflects how this payment of cash dividends would affect Buccaneer Corporation's financial statements?

Moore Company provided services to customers for $8,000 cash. Which of the following answers in this horizontal financial statements model reflects how this event would affect Moore Company's financial statements?