ACCT 212 Week 4 Midterm Exam

The Accounting Equation is … to develop the organization’s financial reports. (1) Describe what liabilities value would be if Assets are $50,000 and Owners’ Equity is $25,000 by showing the Accounting Equation (10 points) and (2) provide an example of two liability accounts. (10 points) Question: The financial statements present a company to the public in financial terms. (1) Which financial statement should … prepared first and why (10 points), and (2) explain what information this financial statement provides. (10 points) Question: The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) Question: Transaction analysis results in the development of a journal entry. In the start-up of a business, the owner contributes $750,000 of cash. (1) Name the accounts … and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is … (10 points)