The sarbanes oxley act refers to answer us

Question 4: The Sarbanes-Oxley Act refers to:
Question 5: The three types of business activities undertaken by all enterprises are:
Question 6: The sale of stock in a business is an example of what type of business
activity?
Question 7: The accounting equation requires that:
Question 8: A higher ratio of liabilities to stockholders’ equity implies that a business is.
Question 9: A primary qualitative characteristic of accounting information is relevance.
Relevance means that information should.

Question 10: The materiality concept is best described as:
Chapter 2: Homework
Question 1: Normal Balances
Account Debit Credit
Accounts Receivable ✔
Accounts Payable ✔
Dividends ✔
Wage Expense ✔
Inventory ✔
Interest Income ✔
Retained Earnings ✔
Question 2: Recording transactions with Accounting Equation
During the year, the Decker Company experienced the following accounting transactions:
1. Issued common stock in the amount of $100,000
2. Paid a $30,000 cash dividend
3. Borrowed $25,000 from a bank
4. Made a principal payment of $2,500 on an outstanding bank loan
5. Made an interest payment of $1,200 on an outstanding bank loan
Cash = Notes Payable + Common Stock + Retained Earnings
1 100,000 100,000
2 (30,000) (30,000)
3 25,000 25,000
4 (2,500) (2,500)
5 (1,200) (1,200)

Question 3 – Part A: During the year, the Decker Company experienced the
following accounting transactions:
1. Issued common stock in the amount of $100,000
2. Paid a $30,000 cash dividend
3. Borrowed $25,000 from a bank
4. Made a principal payment of $2,500 on an outstanding bank loan
5. Made an interest payment of $1,200 on an outstanding bank loan
General Journal
# Description Debit Credit
1 Cash 100,000
Common Stock 100,000
2 Retained Earnings 30,000
Cash 30,000
3 Cash 25,000
Notes Payable 25,000
4 Retained Earnings 2,500
Cash 2,500
5 Retained Earnings 1,200
Cash 1,200
Question 3- Part B: Separated T- Charts.
Cash
Common Stock
100,000
Notes Payable
2,500 25,000
Retained Earnings
2,500
100,000 30,000
25,000 2,500
1,200

1,200
Question 4: Trial Balance
General Information
Trial Balance
Accounts Debit Credit
Cash 6,000 0
Accounts Receivable 10,800 0
Equipment 30,000 0
Accounts Payable 0 6,000
Common Stock 0 36,000
Dividends 2,400 0
Sales Revenue 0 17,200
Administrative
Expense
8,000 0
Utilities Expense 2,000 0
Totals 59,200 59,200