Financial Accounting 1 - 4890 Words

FINAL EXAM 1 1. Which of the following is the fundamental accounting equation? Current assets + Current liabilities = Owners equity Assets + Owners equity = Liabilities Cash = Debts + Common stock Assets = Liabilities + Owners equity 2. On December 31, 2014, Track Record Inc.s sales people have ï ¬ rm outstanding orders totaling $1.66 million, which, it has guaranteed its customers, will be fulï ¬ lled during the month of January 2015. If Track Record includes the $1.66 million in its sales ï ¬ gures for 2014, it will be violating the: Materiality concept Historical cost concept Dual-aspect concept Realization concept 3. Which one of the following best describes a balance sheet? A description of the entitys operations over a period of time A†¦show more content†¦remotely possible economic resources may be sacriï ¬ ced in the future reasonably possible economic resources may be sacriï ¬ ced in the future reasonably certain economic resources may be sacriï ¬ ced in the future 11. The realization concept states that revenue is recorded when: It has been earned and realized or realizable All the associated costs have been paid in cash It has been received in cash 12. On its June 30, 2015 balance sheet, Barrows Corporation has total assets of $100,000, current liabilities of $40,000, and owners equity of $60,000. Which one of the following statements must be true on June 30, 2015? It has current assets of $40,000 It has no long-term liabilities? It has a cash balance of $40,000 raised through short-term debt None of the above 13. Turnadot Sons is a small wholesaler of decorative cast iron objects. The following events, related to a special customer order, occur as described below: †¢ August 5, 2015: Turnadot receives the special order for 200 outdoor planters at a selling price of $50 each, including delivery at a future convenient time and location. The customer, with whom Turnadot has had a long-term, trouble-free relationship, pays $3,000 as a deposit and agrees to pay the rest on delivery. Turnadot immediately orders $4,000 worth of planters from its supplier and pays a $1,000 deposit for them. †¢ August 27, 2015: Turnadot pays $3,000 balance due to the supplier upon delivery of the planters to its warehouse. †¢Show MoreRelatedFinancial Accounting 14806 Words   |  20 PagesMultiple Choice: 1. In general terms, financial assets appear in the balance sheet at: a. Face value b. Current value c. Cost d. Estimated future sales value 2. Which of the following practices contributes to efficient cash management? a. Never borrow money – maintain a cash balance sufficient to make all necessary payments. b. Record all cash receipts and cash payments at the end of the month when reconciling the bank statementsRead More1-The Presentation Of Financial Accounting Information1310 Words   |  6 Pages1- The presentation of financial accounting information is governed by a combination of legal requirements and accounting regulations and conventions. Different types of business entities are governed by different requirements for the preparation of financial statements. Discuss the different elements of financial statement and support with examples from the Annual report of Al Marai. Balance sheet: financial statement that summarizes a company s assets, liabilities and shareholders equity atRead MoreFinancial Accounting Libby Chapter 1 Notes4725 Words   |  19 Pagesï » ¿Lesson 1:   The Accounting Process (Textbook Libby et al. Chapters 1 and 2). Objectives:  Ã‚  Ã‚  Ã‚  Ã‚   When you have successfully completed this lesson, you will be able to... Define accounting and explain its purpose Define business and identify the different types of businesses Explain the accounting equation: Assets = Liabilities + Owners Equity Visualize the start of a business, create accounting transactions for it, and prepare simple financial statements   Reading Assignment Please read chaptersRead MoreAdvanced Financial Accounting Chapter 1 Notes Essay2661 Words   |  11 Pages1 Intercorporate Acquisitions and Investments in Other Entities McGraw-Hill/Irwin Copyright  © 2009 The McGraw-Hill Companies, Inc. 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This is a great example of the line between ethicsRead MoreBAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja900 Words   |  4 PagesBAF 301 Accounting and financial management Assignment 1 Mohammad Gholamali 20101147 Dr. Suja Sarah Thomas Colleague of Electrical Electronics Engineering Introduction In this report I am going to write some of the important principle and assumption and guidance used to prepare accounting statements. In the world of business there are some general rules and principles which the universe of accounting uses them as a general guidance. There are some international framework like Financial accountingRead MoreRelationship Between Accounting Principles Board And The Financial Accounting Standards Board1349 Words   |  6 Pagesbrief history of the relationship between the Accounting Principles Board and the Financial Accounting Standards Board. Accounting Principles Board. 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