accounting1finalstudyguideversion2

accounting1finalstudyguideversion2 - Accounting I Final...

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Accounting I Final Question and Answers: Which of the following best describes accounting? is an information system that provides reports to stakeholders Which of the following is not a step in providing accounting information to stakeholders? prepare accounting surveys 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? $95,000 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 ________. decrease an asset, decrease a liability 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? assets increase $5,000; liabilities decrease $15,000; owner's equity increases $20,000 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? Increase Total Assets by a net amount of $12,000 (increase Computer and Office Equipment $15,000 and decrease Cash $3,000) and increase Liabilities (Notes Payable $12,000) The asset section of the Balance Sheet normally presents assets in ________. in the order what will be converted into cash
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Which of the following applications of the rules of debit and credit is true? increase Supplies Expense with a debit and the normal balance is a debit 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) XYZ Hospital purchased X-ray equipment for $3,000, paid $750 down, with the remainder to be paid later. The correct entry would be Equipment 3,000 Accounts Payable 2,250 Cash 750 Recording this transaction will ________. increase cash and increase revenues June 26 Equipment 14,000 Cash 4,000 Notes Payable 10,000 ????????? Purchased equipment, paid cash of $4,000, with the remainder to be paid in
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This note was uploaded on 05/09/2010 for the course ACCT AC116 taught by Professor Hobbs,j during the Spring '10 term at Kaplan University.

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accounting1finalstudyguideversion2 - Accounting I Final...

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