Sophia's Accounting Final Exam Review Correct 100%!

Sophia's Accounting Final Exam Review Correct 100%!Sophia's Accounting Final Exam Review Correct 100%!Jason Ford has been the sole owner of a bicycle sales and repair shop for several years. Which of the following business types would limit Jason's personal liability exposure to the entity's debts? - ANSWER limited liability company Ten years ago a corporation purchased a building for $180,000. At that time, the corporation felt that the building was worth $205,000. The current market value of the building is $420,000. The building has been assessed at $395,000 for property tax purposes. At which amount should the corporation record the building in its accounting records? - ANSWER $180,000 (the amount you bought it at) Equity of a corporation is broken out into two components. Which of the following are the two components of the equity of a corporation? - ANSWER contributed capital and retained earnings Diamond, Inc. had the following transactions during June: Performed services for $3,000 on account; received cash on account, $6,000; paid $800 for repair expense; paid $1,800 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June transactions? - ANSWER $3,400 increased (6,000-800-1,800=3400) Newton Corporation settles a liability by making a payment in cash. How does paying this liability affect the accounting equation of the business? - ANSWER assets and liabilities decreased Country Homes Corporation just recorded a transaction in its books. If this transaction increased the total liabilities by $8,000, then? - ANSWER assets must increase, or equity must decrease by $8,000 Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $300 are left at the end of the year. - ANSWER (SHE= common stock - dividends + revenues - expenses ) $13,000+$15,000-$500+$2,900= $30,400 Which is the correct order or preparation of financial statements? - ANSWER income statement, statement of retained earnings, balance sheet, statement of cash flows