2 operating activity cash paid for withdrawals by

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___ _ 2. Operating activity Cash paid for withdrawals by owners. ___ _ 3. Investing activity Cash received from customers. ___ _ 4. Operating activity Cash received from owner contributions. ___ _ 5. Investing activity Cash paid for utilities. ___ _ 6. Financing activity Cash paid for a delivery van to be used in the business. ___ _ 186.Explain the role of accounting in the information age. 187.What is the balance sheet? What is its purpose? 188.Identify the users and uses of accounting information. 189.Identify several opportunities in accounting and its related fields. 190.Explain why ethics are an integral part of accounting.
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191.Describe the three important guidelines for revenue recognition. 192.Identify the three basic forms of business organizations. 193.How does the objectivity principle support ethical behavior? 194.Identify the two main groups involved in establishing generally accepted accounting principles. 195.How does the going-concern principle affect reporting asset values of a business? 196.Describe the relation between revenues, expenses, and net income.
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197.Explain the accounting equation, and define its terms. 198.What distinguishes liabilities from equity? 199.What is the purpose of return on assets as an analytical tool? 200.Discuss the relation between risk and return. 201.Describe the three types of activities reported on the statement of cash flows. 202.Identify and describe the four basic financial statements:
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203.The characteristics below apply to at least one of the forms of business organization. a. Is a separate legal entity. b. Is allowed to be owned by one person only. c. Owner or owners are personally liable for debts of the business. d. Is a taxable entity. e. Is a business entity. f. May have a contract specifying the division of profits among the owners. g. Has an unlimited life Use the following format to indicate (with a "yes" or "no") whether or not a characteristic applies to each type of business organization. 204.A parcel of land is offered for sale at $600,000, is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is sold for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer? 205.You are reviewing the accounting records of Cathy's Antiques, owned by Cathy Miller. You have uncovered the following situations. Compose a memo to Ms. Miller. Cite the appropriate accounting principle and suggest an action for each separate item. 1. In August, a check for $500 was written to Wee Day Care Center. This amount represents child care for her son Brandon. 2. Cathy plans a Going Out of Business Sale for May, since she will be closing her business for a month-long vacation in June. She plans to reopen July 1 and will continue operating Cathy's Antiques indefinitely. 3. Cathy received a shipment of pine furniture from Quebec, Canada. The invoice was stated in Canadian dollars.
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  • Spring '10
  • Brown
  • Balance Sheet, Generally Accepted Accounting Principles, A. Assets, C. Assets

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