latest_final_Acc_I - 1 Which of the following best...

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Unformatted text preview: 1. Which of the following best describes accounting? recor ds econ omic data but does not com muni cate the data to users acco rdin g to any speci fic rules is an info rma tion syste m that prov ides repo rts to stak ehol ders C ORR 2. Which of the following is not a step in providing accounting information to stakeholders? desi gn the acco untin g infor mati on syste m prep are acco unti ng surv eys C ORR ECT ident ify stake hold ers recor d econ omic data 3. Aztec Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $100,000. The Majestic Company initially offered to buy the land for $87,000. The companies settled on a purchase price of $95,000. On the same day, another piece of land on the same block sold for $102,000. Under the cost concept, what is the amount that will be used to record this transaction in the accounting records? $100 ,000 $87, 000 $102 ,000 $95, 000 C ORR ECT 4. A business paid $9,000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to ________. incre ase one asset , decr ease anot her asset incre ase an asset , incre ase a liabil ity decr ease an asset , decr ease a liabi lity C ORR ECT 5. The Kennedy Company sold land for $60,000 in cash. The land was originally purchased for $40,000, and at the time of the sale, $15,000 was still owed to First National Bank on that purchase. After the sale, The Kennedy Company paid off the loan to First National Bank. What is the effect of the sale and the payoff of the loan on the accounting equation? asset s incre ase $20, 000; liabil ities decr ease $15, 000; own er's equit y incre ases $5,0 00 asset s incr ease $5,0 00; liabi lities decr ease $15, 000; own er's equi ty incr ease s $20, 6. Rivers Computer Makeover Company purchased $15,000 of Computer and Office Equipment. The company paid $3,000 in cash at the time of the purchase and signed a promissory note for the remainder to be paid in six monthly installments. How will this transaction affect the accounting equation? Incre ase Asse ts (Co mput er and Offi ce Equi pme nt $15, 000) and decr ease Liab ilitie s (Acc ount s Paya ble $15, 000) Incr ease Tota l Asse ts by a net amo unt of $12, 000 7. The asset section of the Balance Sheet normally presents assets in ________. alph abeti cal orde r orde r of large st to smal lest dolla r amo unts in the orde r wha t will be conv erte d into cash C ORR ECT 8. Which of the following applications of the rules of debit and credit is true? decr ease Prep aid Insur ance with a credi t and the nor mal bala nce is a credi t incre ase Acc ount s Paya ble with a credi t and the nor mal bala nce is a debit 9. Randomly listed below are the steps in the accounting cycle: (1) prepare the financial statements (2) post the journal entries to the ledger (3) record journal entries (4) prepare a trial balance What is the proper order of these steps? (3), (2), (4), (1) C ORR ECT (2), (3), (4), (1) (3), (2), (1), (4) (4), (3), (2), (1) 10...
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This note was uploaded on 04/22/2009 for the course BUS 181 taught by Professor Ms. smith during the Spring '09 term at Harold Washington College - CCC.

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latest_final_Acc_I - 1 Which of the following best...

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