DYR Chapter 1

Which financial statement shows cash collected from customers?
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Terms in this set (21)
Which financial statement shows cash collected from customers?
Statement of cash flows
During the year, Patriot Partners had $245,000 in revenues, $120,000 in expenses, and $40,000 in declared dividends.

What was the total change in Retained Earnings during the year?
$85,000 increase
Why is the income statement the first financial report prepared?
The income statement is prepared first because its result, Net Income, is needed as part of the other financial statements.
The owner of Shady Grove Company has the bookkeeper write company checks to pay for his personal items. This violates __________.
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The owner of Shady Grove Company has the bookkeeper write company checks to pay for his personal items. This violates __________.
the entity assumption
Current assets include __________.
cash and accounts receivable
represent(s) the "insider claims" of business.
Equity
The Business Ethics Leadership Alliance (BELA) holds four values vital to all their practices.

Which of the following is NOT one of the core values of BELA?
Conservatism
Which of the following statements regarding business organizations is NOT correct?
Owners of a corporation are called members.
Net income for the period was $245,000. The retained earnings account had a beginning balance of $25,000.

If the company paid dividends of $15,000 during the year, what is the ending balance in retained earnings?
$255,000
Which of the following statements regarding financial statements is NOT correct?The statement of cash flows reports cash flows from operating, investing, and capital activities.Which of the following events increases the equity in a business?Investments from stockholdersWhich of the following forms of business organization does not protect owners from personal liability for business debts?sole proprietorshipSue Mason owns a bagel shop as a sole proprietorship. Sue includes her personal home, car, and boat on the books of her business. Which of the following is violated?Entity assumptionEnding assets for CompuHelp equal $650,000 and the beginning retained earnings balance was $325,000. If net income during the period was $225,000 and dividends were $150,000, what were ending liabilities?$250,000Barton Industries had the following asset accounts at year end: Cash= $10,000 Accounts Receivable= 2,500 Supplies= 750 Equipment= 12,000 Building= 70,000 Land= 112,000 What are Barton's total current assets?-Cash -Accounts Receivable -Supplies = $13,250Which of the following is a form of the accounting equation?Assets - Liabilities = Stockholders' EquityWhich of the following statements is correct?Financial accounting provides information for decision makers outside the entity.Which of the following is a true statement regarding ethics related to accounting?Accountants must be educated on ethics as they are very often faced with ethical decisions in pressure situations. This education could help in making the right decision.Jason Jewelers reported the following in its statement of cash flows: Net cash provided by operating activities $140,000 Net cash provided by investing activities 120,000 Net cash used by financing activities 150,000 What is the total net increase or decrease in cash reported by Jason Jewelers?Net increase of $110,000In the United States, the professional standards for accounting are referred to as _______:GAAP