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To compute debt ration enter liabilities first and divide that by assets and it should read something like .92 or. Preparing and entering a list of checks issued. Recording selected answer correct Using a cash register to enter sales. Recording selected answer correct Entering a list of the sales invoices, including the prices and quantities, for the company's recordkeeper. Identifying selected answer correct Interpreting information from financial reports. Communicating selected answer correct Preparing financial statements for creditors. Communicating selected answer correct Users Terms Customers External Information User selected answer correct Purchasing manager Internal Information User selected answer correct Marketing Manager Internal Information User selected answer correct Suppliers External Information User selected answer correct Labor Union External Information User selected answer
correct Accounting certifications include: CPA In the fraud triangle, when a person feels an incentive to commit fraud, this is referred to as PRESSURE. The organization that is primarily responsible for developing GAAP for use by all U.S. companies is the: FASB If equity is $30,000 and liabilities are $19,000, then assets must equal: $49, Assets = Liabilities + Equity During its first year of operations, Mario Lupo formed Lupo Company as a corporation and personally invested $15,000 in the business in exchange for common stock. Lupo Company also paid dividends of $2,000. The company earned $35,000 of revenues and incurred $23,000 of expenses. At the end of the year, the company's equity totaled: $25, Analyze the following transaction and select the best answer. Tyler invests $2,000 cash in exchange for common stock, to begin a new company, Tyler’s Tayloring. This transaction will: increase equity by $2, On January 31, Jean Consulting Company receives a bill for that month’s utilities in the amount of $500. Jean sets it aside because she does not plan to pay the bill until its due date of February
- What effect, if any, does this event have on the company’s accounting equation as of January 31? The business must record this event, which would increase liabilities and decrease equity on January 31 The four basic financial statements are: Income Statement, Statement of retained earnings, Balance sheet, and Statement of cash flows. Identify which items belong on the income statement. Revenue, expenses and net income Identify which items belong on the statement of retained earnings. Dividends, beginning retained earnings, ending retained earnings Identify which items belong on the balance sheet. Cash, accounts receivable, and common stock
credit (all these go up) how to increase each of the accounts below? Items Item
Cash Debit selected answer correct Item
Accounts Payable Credit selected answer correct Item
Supplies Debit selected answer correct Item
Accounts Receivable Debit Items Item #1 Common stock Credit Item #2 Professional Fees Revenue Credit Item #3 Dividends Debit Item #4 Salaries Expense Debit The process of recording transactions in a journal is called: Journalizing Learning Objective 01-A2: Compute and interpret return on assets. Skip to question Return on assets is computed as net income divided by average assets. For example, if we have an average balance of $100 in a savings account and it earns $5 interest for the year, the return on assets is $5/$100, or 5%.
Define and interpret the accounting equation and each of its components. Accounting shows two basic aspects of a company: what it owns and what it owes. Assets are resources a company owns or controls. The claims on a company’s assets—what it owes—are separated into owner (equity) and nonowner (liability) claims. Together, liabilities and equity are the source of funds to acquire assets. Assets Assets are resources a company owns or controls. These resources are expected to yield future benefits. Examples are web servers for an online services company, musical instruments for a rock band, and land for a vegetable grower. Assets include cash, supplies, equipment, land, and accounts receivable. A receivable is an asset that promises a future inflow of resources. A company that provides a service or product on credit has an account receivable from that customer. Point: “On credit” and “on account” mean cash is received or paid at a future date. Liabilities are creditors’ claims on assets. These claims are obligations to provide assets, products, or services to others. A payable is a liability that promises a future outflow of resources. Examples are wages payable to workers, accounts payable to suppliers, notes (loans) payable to banks, and taxes payable. Equity Equity is the owner’s claim on assets and is equal to assets minus liabilities. Equity is also called net assets or residual equity.
Clothing Entertainment Subscriptions (streaming services, gym memberships) Travel expenses (personal travel) Given the following list of accounts, identify which are classified as assets. Supplies Cash Land Equipment Accounts Receivable Identify the expanded accounting equation from the options below. Assets = Liabilities + Common Stock - Dividends + Revenues - Expenses Tangible Assets: These are physical assets that can be touched and have a physical form, such as real estate, vehicles, equipment, and inventory. Intangible Assets: These are assets that lack a physical form but still have value, such as intellectual property (patents, trademarks, copyrights), goodwill, and brand recognition. Current Assets: These are assets that are expected to be converted into cash within a year, like cash, accounts receivable, and inventory. Fixed Assets: These are long-term assets that are not expected to be converted to cash within a year, such as land, buildings, and equipment. Personal Assets: These are assets owned by an individual, such as a home, car, and investments. Business Assets: These are assets owned by a business, including cash, inventory, equipment, and real estate. Investments:
These are assets held with the expectation of generating income or appreciation, such as stocks, bonds, and real estate. Liquid Assets: These are assets that can be easily converted into cash without a significant loss of value, such as cash, bank accounts, and readily marketable securities. Fixed-income assets: These are assets that pay a set level of income to investors, typically in the form of fixed interest or dividends. Land: Land is a fundamental and tangible asset that holds intrinsic value due to its potential for development, utilization, or resale. Office equipment: Office equipment is classified as a fixed asset on the balance sheet, because they're considered to be long-term investments that will depreciate over time. Dividends are distributions of property a corporation may pay you if you own stock in that corporation Liabilities represent what a company owes to external parties, such as creditors, employees, or the government. Examples: Loans: Amounts borrowed from banks or other lenders. Accounts Payable: Amounts owed to suppliers for goods or services received but not yet paid. Taxes Payable: Amounts owed to government entities for income, property, or other taxes. Wages Payable: Amounts owed to employees for work performed but not yet paid. Dividends Payable: Amounts owed to shareholders for dividends that have been declared but not yet paid. Unearned Revenue: Money received for goods or services that have not yet been provided. Accrued Expenses: Expenses that have been incurred but not yet paid, such as salaries, interest, or rent.
