Exam (elaborations) Accounting 29th Edition

Accounting 29th Edition By Carl
Warren, Jefferson Jones, William
Tayler (Solution Manual)

, Assets - CORRECT ANSWERS-Things company owns & uses to generate revenue

Liabilities - CORRECT ANSWERS-Amount that company owes

Equity - CORRECT ANSWERS-Amount invested in company by owners; owners claim
no assets

Accounting equation - CORRECT ANSWERS-Assets = liabilities + equity

Truism in business - CORRECT ANSWERS-Company never receives greater than it
gives & never gives greater than it receives

4 Rules of debits & credits - CORRECT ANSWERS-1. Debit amount received; credit
amount given up
2. Debuts on left; credits on the right
3. In each transactions; list debits first (good) & credits last (bad)
4. Total debits = total credits

Making an ethical decision - CORRECT ANSWERS-1. Identify ethical concerns- use
personal ethics to recognize concern
2. Analyze options- consider all good & bad consequences
3. Make ethical decision- choose best option given circumstances