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
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?
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
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
The asset section of the Balance Sheet normally presents assets in ________.
in the order what will be converted into cash