Financial Accounting
7th Edition
ISBN: 9781118162286
Author: Kimmel, Paul D.
Publisher: John Wiley & Sons Inc
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Chapter 3, Problem 4Q
(a)
To determine
Accounting Transaction:
An economic event, which causes impact (increases or decreases the value of the assets, liabilities or
Accounting Equation:
Accounting equation is the mathematical representation of the relationship among the assets, liabilities, and stockholder’s equity at any given point of time. The components of the accounting equation include the assets, liabilities and stockholder’s equity. In the accounting equation, the assets, which are on the left side of the equation and the liabilities and stockholder’s equity which are on the right side must always balance. The accounting equation is as follows:
To indicate: the manner in which each business transaction affects the basic accounting equation.
(b)
To determine
To indicate: the manner in which each business transaction affects the basic accounting equation.
(c)
To determine
To indicate: the manner in which each business transaction affects the basic accounting equation.
(d)
To determine
To indicate: the manner in which each business transaction affects the basic accounting equation.
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Identify the items from the following list that are likely to serve as source
documents.
Is this a
Item
source
document?
a. Invoice from supplier
b. Ledger
c. Statement of cash flows
d. Company revenue account
e. Sales receipt
f. General journal
g. Prepaid insurance account
h. Employee time clock record
i. Credit card receipt
According to concept of accounting, financial or business transaction is recorded:
a ) when cash is received or paid
b) when transaction occurs
c) when profit is computed
D) when balance sheet is prepared
===================================
Which of below users considered as Internal users of accounting information system?
a. Investor
b. Middle management
c. Bank
d. Buyer
==========================
Creditors of a business may want to use the financial statements to:
a. Be sure that after-sales service will continue
b. Be sure of an increasing share of the market
c. Check that the business is making a profit
d. Check that they are likely to be paid when due
Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1QCh. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9QCh. 3 - What is the normal balance for each of these...
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 3.1BECh. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.9BECh. 3 - Prob. 3.10BECh. 3 - Prob. 3.11BECh. 3 - Prob. 3.12BECh. 3 - Prob. 3.1DIRCh. 3 - Prob. 3.2DIRCh. 3 - Prob. 3.3DIRCh. 3 - Prob. 3.4DIRCh. 3 - E3-1 Selected transactions for Warner Advertising...Ch. 3 - E3-2 Manning Company entered into these...Ch. 3 - E3-3 During 2014, its first year of operations as...Ch. 3 - E3-4 A tabular analysis of the transactions made...Ch. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - E3-11 Selected transactions for Protheroe...Ch. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.1APCh. 3 - P3-2A Nina Finzelberg started her own consulting...Ch. 3 - P3-3A Cindy Braun created a corporation providing...Ch. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Prob. 3.7APCh. 3 - Prob. 3.8APCh. 3 - Prob. 3.1BPCh. 3 - Prob. 3.2BPCh. 3 - Prob. 3.9APCh. 3 - Prob. 3.4BPCh. 3 - Prob. 3.5BPCh. 3 - Prob. 3.6BPCh. 3 - P3-7B This trial balance of Lindbergh Company does...Ch. 3 - P3-8B Roxy Theater Inc. was recently formed. All...Ch. 3 - P3-9B A first year co-op student working for...Ch. 3 - Prob. 3.1BYPCh. 3 - Prob. 3.2BYPCh. 3 - Prob. 3.4BYPCh. 3 - RESEARCH CASE
BYP3-3 The January 27, 2011, edition...Ch. 3 - Prob. 3.6BYPCh. 3 - Prob. 3.7BYPCh. 3 - Prob. 3.8BYPCh. 3 - Prob. 3.10BYPCh. 3 - Prob. 3.1IFRS
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- What is the effect on the accounting equation when a business pays the balance due on accounts payable?arrow_forwardExplain how the accounting equation organizes financial information using T-accounts and debits and credits.arrow_forwardFrom the following list, identify which items are considered original sources: A. accounts receivable B. receipt from post office for post office box C. purchase order D. general ledger E. adjusted trial balance F. statement of retained earnings G. electric bill H. packing slip I. company expense account J. statement of cash flowsarrow_forward
- What is the effect on the accounting equation when a business purchases supplies on account?arrow_forwardFor each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance billarrow_forwardWhich of the following pairs of accounts are impacted the same with debits and credits? A. Cash and Unearned Service Revenue B. Electricity Expense and Office Supplies C. Accounts Receivable and Accounts Payable D. Buildings and Common Stockarrow_forward
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- For each of the transactions, state which special journal (sales journal, cash receipts journal, cash disbursements journal, purchases journal, or general journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, or neither) would be used in recording the transaction. A. Paid utility bill B. Sold inventory on account C. Received but did not pay phone bill D. Bought inventory on account E. Borrowed money from a bank F. Sold old office furniture for cash G. Recorded depreciation H. Accrued payroll at the end of the accounting period I. Sold inventory for cash J. Paid interest on bank loanarrow_forwardUnder the cash basis of accounting, which of the following statements is true? a. Revenue is recorded when it is earned, regardless of when the cash is received. b. Expenses are recorded when they are paid. c. Expenses are recorded when they are incurred, regardless of when the cash is paid. d. The cash basis of accounting is allowed for all corporations.arrow_forward
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