Accounting 300 – exam 1 with answers 2023 graded A+

True or False General accounting principles stem from long-used accounting practices. - True True or False An external transaction is an exchange within an entity that may or may not affect the accounting equation. - False True or False The Sarbanes-Oxley Act (SOX) does not require public companies to apply both accounting oversight and stringent internal controls. - False True or False In the partnership form of business, the owners are called stockholders. - False True or False From an accounting perspective, an event is a happening that affects the accounting equation, but cannot be measured. - False The statement of cash flows reports all of the following except: - The net increase or decrease in assets for the period reported -The net increase or decrease in cash for the period reported -Cash flows from financing activities. -Cash flows from investing activities. -Cash flows from operating activities. - The net increase or decrease in assets for the period reported Determine the net income of a company for which the following information is available for the month of September. Service Revenue: $300,000 Rent Expense: $48,000 Utilities Expense: $3,200 Salaries Expense: $81,000 - $167,800 If Houston Company billed a client for $25,000 of consulting work completed, the accounts receivable asset increases by $25,000 and: -Accounts payable decreases $25,000. -Accounts payable increases $25,000. -Cash increases $25,000. -Revenue decreases $25,000. -Revenue increases $25,000. - Revenue increase 25,000 Grandmark Printing pays $2,000 rent to the landlord of the building where its facilities are located. How does this transaction affect the accounting equation for Grandmark? - Assets would decrease $2,000 and equity would decrease $2,000. Use the following information as of December 31 to determine equity. Cash $ 63,000 Buildings 181,000 Equipment 212,000 Liabilities 147,000 - $309,000 Flitter reported net income of $22,500 for the past year. At the beginning of the year the company had $210,000 in assets and $60,000 in liabilities. By the end of the year, assets had increased to $310,000 and liabilities were $85,000. Calculate its return on assets: - 8.7% Speedy has net income of $34,955, and assets at the beginning of the year of $216,000. Assets at the end of the year total $262,000. Compute its return on assets. - 14.6% On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $22,000; Accounts Receivable, $7,500; Supplies, $850; Equipment, $12,250; Accounts Payable, $9,550. What is the amount of equity as of May 31 of the current year? - $33,050 An example of an investing activity is: -Selling inventory. -Investments by stockholders in exchange for common stock. -Dividends paid to stockholders. -Purchase of land. -Paying wages of employees. - Purchase of land Zapper has beginning equity of $265,000, net income of $55,000, dividends of $44,000 and stockholder investments of $10,000. Its ending equity is: - $286,000 Identify the item below that would cause the trial balance to not balance. - A $1,360 collection of an account receivable was erroneously posted as a debit to Accounts Receivable and a credit to Cash. - The cash payment of a $1,110 account payable was posted as a debit to Accounts Payable and a debit to Cash for $1,110. - The purchase of office equipment for $2,100 was posted as a debit to Office S