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Unformatted text preview: Chapter Assignments 35 CHAPTER ASSIGNMENTS Short Exercises 101 Accounting and Business Enterprises SE 1. Match the terms on the left with the definitions on the right: 1. Accounting a. The process of producing accounting information 2. Profitability for the internal use of a company's management 3. Liquidity b. Having enough cash available to pay debts when 4. Financing they are due activities c. Activities management engages in to obtain ade- 5. Investing quate funds for beginning and continuing to oper- activities ate a business 6. Operating d. The process of generating and communicating activities accounting information in the form of financial 7. Financial statements to decision makers outside the accounting organization 8. Management e. Activities management engages in to spend capital accounting in ways that are productive and will help a business 9. Ethics achieve its objectives 10. Fraudulent f. The ability to earn enough income to attract and financial hold investment capital reporting g. An information system that measures, processes, and communicates financial information about an identifiable economic entity h. The intentional preparation of misleading financial statements i. Activities management engages in to operate the business j. A code of conduct that applies to everyday life L03 Accounting Concepts SE 2. Indicate whether each of the following words or phrases relates most closely to (a) a business transaction, (b) a separate entity, or (c) a money measure: 1. Partnership 2. U.S. dollar 3. Payment of an expense 4. Corporation 5. Sale of an asset L04 Forms of Business Enterprises SE 3. Match the descriptions on the left with the forms of business enterprise on the right: 1. Most numerous a. Sole proprietorship 2. Commands most revenues b. Partnership 3. Two or more co-owners c. Corporation 4. Has stockholders 5. Owned by only one person 6. Has a board of directors 36 CHAPTER 1 Uses of Accounting Information and the Financial Statements 105 The Accounting Equation SE 4. Determine the amount missing from each accounting equation below. Assets Liabilities + Stockholders' Equity 1. ? $50,000 $ 70,000 2. $156,000 $84,000 3. $292,000 $192,000 LOS The Accounting Equation SE S. Use the accounting equation to answer each question below. 1. The assets of Aaron Co. are $240,000, and the liabilities are $90,000. What is the amount of the stockholders' equity? 2. The liabilities of Oak Company equal one-fifth of the total assets. The stock- holders' equity is $40,000. What is the amount of the liabilities? LOS The Accounting Equation SE 6. Use the accounting equation to answer each question below. 1. At the beginning of the year, Fazio Company's assets were $45,000 and its stockholders' equity was $25,000. During the year, assets increased by $30,000 and liabilities increased by $5,000. What was the stockholders' equity at the end of the year?...
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- Spring '12