Pearson eText for Financial Accounting -- Instant Access (Pearson+)
5th Edition
ISBN: 9780137525423
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON+
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Textbook Question
Chapter 1, Problem 7SC
Assume that Wave Rider paid expenses totaling $32,000. How does this transaction affect Wave Rider's
- a. Increases assets and decreases liabilities
- b. Decreases both assets and
stockholders' equity - c. Increases both assets and stockholders' equity
- d. Decreases assets and increases liabilities
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Students have asked these similar questions
1. Information of the financial performance is provided by _______ .
a. Statement of profit and loss
b. Statement of changes in owners
c. Statement of financial position
d. Cash flow statement
2. The following are terms used synonymously with equity except
a. Capital
b. Net Assets
c. Net worth
d. Revenue
3. Information about the revenue and expenses is provided by _____.
a. Statement of changes in equity
b. Statement of Cash Flow
c. Statement of Financial position
d. Statement of performance
4. Information on changes in Assets, Liabilities and Owners Equity account
a. Statement of changes in equity
b. Statement of Cash Flow
c. Statement of Financial position
d. Statement of performance
What is the primary purpose of the Statement of Affairs ?
a. To determine how much is owed by the customers
b. To determine the amount for the owners equity
c. To determine how is left in the bank account
d. To determine if there was a gain or loss on disposal
The term Margin is determined by which of the following operations?
a. Adding all the incomes
b. Dividing gross profit by sales
c. Subtracting expenses from sales
d. Multiplying capital by a decimal
The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was
completely destroyed by flood rains. The following information is available:
(1) Inventory at December 1, 2010 at cost $31,400
(2) Purchases for December 2010 $55,600
(3) Sales for December 2010 $88,800
(4) Standard mark-up is 25%
Based on this information, what was the value of the closing inventory?
a. $15,960
b. $17,760
c. $20,400
d. $25,800…
Which of the following normally has a net credit balance?
A. Asset accounts such as cash, accounts receivable, inventory, and equipment
B. Expenses that decrease retained earnings
C. Dividends that decrease retained earnings
D. Revenues that increase retained earnings
Chapter 1 Solutions
Pearson eText for Financial Accounting -- Instant Access (Pearson+)
Ch. 1 - The text states that accounting is the "language...Ch. 1 - Would you describe accounting as primarily a...Ch. 1 - Prob. 3DQCh. 1 - What are some reasons why accounting has adopted...Ch. 1 - What are some of the uses of financial statements?Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - How is the accounting equation affected by each of...Ch. 1 - In what order should the financial statements be...Ch. 1 - Which financial statement would be most useful to...
Ch. 1 - Prob. 1SCCh. 1 - Prob. 2SCCh. 1 - Which accounting principle specifically states...Ch. 1 - Wave Rider is famous for custom skateboards. At...Ch. 1 - Assume that Wave Rider sold skateboards to a...Ch. 1 - Assume that Wave Rider sold skateboards to another...Ch. 1 - Assume that Wave Rider paid expenses totaling...Ch. 1 - Consider the overall effects of the transactions...Ch. 1 - The balance sheet reports a. a businesss financial...Ch. 1 - The income statement reports a. a business's...Ch. 1 - Prob. 11SCCh. 1 - Prob. 12SCCh. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Prob. 3SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 5SECh. 1 - Prob. 6SECh. 1 - Prob. 7SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Prob. 14SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 17AECh. 1 - Using the accounting equation to determine net...Ch. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Types of business organizations and balance sheet...Ch. 1 - Types of accounts and income statement preparation...Ch. 1 - Using the accounting equation to determine net...Ch. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 24BECh. 1 - Prob. 25BECh. 1 - Prob. 26BECh. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Prob. 28BECh. 1 - Prob. 29BECh. 1 - Prob. 30BECh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 32APCh. 1 - A Preparing the income statement, statement of...Ch. 1 - Preparing the income statement and balance sheet;...Ch. 1 - Prob. 35APCh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 37BPCh. 1 - Prob. 38BPCh. 1 - Preparing the income statement and balance sheet;...Ch. 1 - Prob. 40BPCh. 1 - Prob. 1CECh. 1 - This problem is the first problem in a sequence...Ch. 1 - Prob. 1CFSAPCh. 1 - Prob. 1EIACh. 1 - Prob. 2EIACh. 1 - Prob. 1FACh. 1 - Industry Analysis Purpose: To help you understand...Ch. 1 - Prob. 1SBACh. 1 - Prob. 1WC
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- Consider the following accounts, and determine if the account is an asset (A), a liability (L), or equity (E). A. Accounts Payable B. Cash C. Dividends D. Notes Payablearrow_forwardWhat is the impact on the accounting equation when an accounts receivable is collected? A. both sides increase B. both sides decrease C. only the Asset side changes D. the total of neither side changesarrow_forwardThe Effect of Transactions on the Accounting Equation For each of the following transactions, indicate whether it increases (I), decreases (D), or has no effect (NE) on the total dollar amount of each of the elements of the accounting equation.arrow_forward
- On which two financial statements would the Retained Earnings account appear? A. Balance Sheet B. Income Statement C. Retained Earnings Statement D. Statement of Cash Flowsarrow_forwardWhich of these statements is not one of the financial statements? A. income statement B. balance sheet C. statement of cash flows D. statement of owner investmentsarrow_forwardIdentify whether each of the following accounts would be considered a permanent account (yes/no) and which financial statement it would be reported on (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Common Stock B. Dividends C. Dividends Payable D. Equipment E. Income Tax Expense F. Income Tax Payable G. Service Revenue H. Unearned Service Revenue I. Net Incomearrow_forward
- What are the effects of the following transactions on the accounting equation? Indicate an increase (+) or decrease () under the affected asset, liability, and owners equity headings.arrow_forwardWhich statement is most directly affected by a change to net income? A. balance sheet B. income statement C. statement of retained earnings D. statement of cash flowsarrow_forwardWhich of the following accounts is increased by a debit? A. Common Stock B. Accounts Payable C. Supplies D. Service Revenuearrow_forward
- 1.Expenses represent a reduction in ___. A.assets B.revenue C.liability D.equity 2.You are presented a financial statement and from it you can tell what the business owed looking at a financial statement. By studying the information on the statement, you can tell what the business owns and what it owes as of a certain date. You are looking at: A.Income Statement B.Assets C.Revenues D.Balance Sheetarrow_forwardPerforming services on account: Select one: O A. decreases revenues and decreases stockholders' equity. B. increases assets and decreases stockholders' equity. O C. decreases both assets and liabilities. D. increases both net income and stockholders' equity.arrow_forwardAddison Company experienced an accounting event that affected its financial statements as indicated below: Stockholders' Equity + Assets = Liabilities + + Multiple Choice Issued common stock Earned cash revenue Revenue + Earned revenue on account - A Which of the following accounting events could have caused these effects on Addison's financial statements? Expense R Net Income + Statement of Cash Flowarrow_forward
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