AddEx LO1 - EXERCISE 1-6 THE ACCOUNTING EQUATION LO4 (In...

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EXERCISE 1-6 THE ACCOUNTING EQUATION LO4 (In thousands of dollars) A = L + CS + (Beg. RE + Income Div) Case 1: 40 = L + 10 + (15 + 8 2) Liabilities = 9 Case 2: A = 15 + 5 + (8 + 7 1) Assets = 34 Case 3: 75 = 25 + 20 + (10 + Income 3) Income = 23 Case 4: 50 = 10 + 15 + (20 + 9 Div) Dividends = 4 EXERCISE 1-10 ACCOUNTING PRINCIPLES AND ASSUMPTIONS LO 5 1. Going concern (also economic entity) 2. Cost principle 3. Economic entity 4. Monetary unit 5. Time period EXERCISE 2-1 CHARACTERISTICS OF USEFUL ACCOUNTING INFORMATION LO 1 1. reliability 5. verifiability 2. relevance 6. understandability 3. representational faithfulness 7. neutrality 4. consistency 8. comparability
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PROBLEM 2-3 CLASSIFIED BALANCE SHEET LO 2 1. Classified balance sheet: RUTH CORPORATION BALANCE SHEET DECEMBER 31, 2006 Assets Current assets: Cash $ 13,230 Accounts receivable 23,450 Inventory 45,730 Prepaid rent 1,500 Office supplies 2,340 Total current assets $ 86,250 Long-term investments 85,000 Property, plant, and equipment:
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AddEx LO1 - EXERCISE 1-6 THE ACCOUNTING EQUATION LO4 (In...

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