ACCT 311 Ch1
107 terms by selinam1014
The primary function of financial accounting is to provide relevant financial information to parties
external to business enterprises.
Accrual accounting attempts to measure revenues and expenses that occurred durin
The following is a December 31, 2016, post-closing trial balance for Culver City Lighting, Inc.
The balance sheet reports a company's financial position at a point in time.
All current assets are either cash or assets that will be converted into cash or consumed within 12 months or
the operating cycle, whichever is longer.
Identify the basic assumption or broad accounting principle
that was violated in each of the following situations:
Astro Turf Company recognizes an expense, cost of goods
sold, in the period the product is manufactured. Expense
McCloud Drug Co
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased
inventory on account for $190,000 (assume Marchetti uses a perpetual inventory system); (2) paid $49,000 in
salaries to employees for work performed
38. [LO 1] Betty operates a beauty salon as a sole proprietorship. Betty also owns and rents an apartment building.
This year Betty had the following income and expenses. Determine Bettys AGI and complete page 1 of Form 1040
for Betty. Be sure to consider
Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy has two qualifying
dependent children who live with him. He qualifies to file as head of household and has $17,000 in itemized
deductions. Neither of his dependents qua
1. What are the five basic parts of an internal research memo?
The memo has five basic parts: (1) facts, (2) issues, (3) authority list, (4) conclusion, and (5)
2. In writing a research memo, what types of facts should be
c. Assume the original facts except that Jeremy had only $7,000 in itemized deductions. What is Jeremys total
income tax liability?
For AGI deductions
Adjusted gross income