ANALYZE TRANSACTIONS AND EVENTS
Q1. A transaction is an event that affects the financial position of an enterprise; it changes an asset (A),
liability (L), or stockholders equity (SE) account. A company is not liable for payment of supplies un
Tiffany & Co (TIF), Wal-Mart Stores (WMT), and Ford Motor Company (F) are well-known companies, but
how much do you really know about them?
Q1. FINANCIAL TRIVIA For the fiscal years ending below, put a large circle in the box o
TEST YOUR UNDERSTANDING
Q1. Make the following statements true by correcting the false information.
Note: There may be more than one way to correct the false information.
a. The four financial statements include the revenue income statement, s
Q1. Identify the accounting equation amounts for PepsiCo Corporation using the information above.
Assets $68,153 million = Liabilities $46,989 million + Stockholders Equity $21,164 million
Q2. Assets can either be financed with li
FINA 5336 A - Fall 2016
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP)
Q1. GAAP are the rules that must be followed when preparing the financial statements for external use.
Q2. GAAP stands for Generally Accepted Accounting Princ
THE CHART OF ACCOUNTS
A chart of accounts is a list of all accounts used by a company. Following is the chart of accounts for Doogies
Dog Grooming Corporation.
Q1. Identify each of the above accounts as either a(n) (A)sset, (L)iability, (S)toc
Q1. Circle whether the account is classified as a (Rev)enue, (Exp)ense, or (Not) reported on the income statement.
a. Wage expense
d. Service revenue
e. Rent expense
c. Cost of goods sold
STATEMENT OF STOCKHOLDERS EQUITY
Q1. Earnings is another word for net income.
Earnings of a corporation belong to the stockholders.
Earnings can either be distributed to the stockholders as dividends or kept in the business as retained
STATEMENT OF CASH FLOWS
Q1. Use PepsiCos 2010 statement of cash flows above to answer the following questions:
a. PepsiCos operating activities generated cash inflows of $8,448 million.
b. PepsiCo purchased property, plant, and equipment, which