ACCT1021 Chapter Notes - Chapter 1: Investment, International Financial Reporting Standards, Financial Accounting Standards Board

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brownbadger860

27 Feb 2016

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Beginning retained earnings + net income dividends = ending retained earnings the retained earnings portion of the statement indicates the relationship of the income statement to the balance sheet. Statement of cash flows: divides cash inflows and outflows (receipts and payments) into three primary categories of cash flows in a typical business: cash flows from operating (cfo), investing (cfi), and financing activities (cff) Structure: the name of the entity the title of the report the unit of measure used in the statement a specific period of time (the accounting period) Cash flow equation: describes the causes of the change in cash reported on the balance sheet from the end of last period to the end of the current period. Cash flows from operation activities: directly related to earning income (e. x. cash collected from customers, the amounts in cash paid to suppliers and employees)

Related Questions

1.A business pays off a note payable. What effect does this have on the accounting? equation? A. Assets? increase, Liabilities remain the? same, and? Stockholders' Equity increases. B. Assets? increase, Liabilities? decrease, and? Stockholders' Equity remains the same. C. Assets? decrease, Liabilities remain the? same, and? Stockholders' Equity increases. D. Assets? decrease, Liabilities? decrease, and? Stockholders' Equity remains the same

If Total Assets remain the same and Total? Stockholders' Equity? increases, Liabilities? will:

increase by the same amount.

decrease by the same amount.

increase by a different amount.

remain the same.

The Income Statement is used to? report:

the financial position for a specific period.

results of operations for a specific date.

the financial position on a specific date.

results of operations for a specific period.

The Balance Sheet is used to? report:

results of operations for a specific period.

the financial position for a specific period.

the financial position on a specific date.

results of operations for a specific date.

redfly679

1. Creditors' claims on the assets of a company are called: (Points : 2)

2. The primary objective of financial accounting is: (Points : 2)

To serve the decision-making needs of internal users

To provide financial statements to help external users analyze and interpret an organization's activities

To monitor and control company activitiesTo provide information on both the costs and benefits of managing products and services

To know what, when and how muchto produce

3. Assets created by selling goods and services on credit are: (Points : 2)

4. The debt ratio is used: (Points : 2)

To measure the amount of equity relative to the expenses

To reflect the risk associated with a company's debts

Only by banks when a business applies for a loan

To determine how much debt a firm should pay off

5. Net Income: (Points : 2)

Decreases equity

Represents the amount of assets owners put into a business

Equals assets minus liabilities

Is the excess of revenues over expenses

Represents the owners' claims against assets

6. Internal users of accounting information include: (Points : 2)

Shareholders

Customers

Creditors

Government regulators

Line Supervisor

7. Risk is: (Points : 2)

Net income divided by average total assets

The reward for investment

The uncertainty about the expected return that will be earned from an investment

Unrelated to expected return

8. An example of an operating activity is: (Points : 2)

Paying wages

Purchasing office equipment

Borrowing money from a bank

Selling stock

Paying off a loan

9. Which accounting assumption assumes that all accounting information is reported monthly or yearly? (Points : 2)

Business entity assumption

Monetary unit assumption

Value assumption

Cost assumption

Time period assumption

10. Distributions of assets by a business to its stockholders are called: (Points : 2)

Oaks Company had the following balances in its accountingrecords as of December 31, 2009: Assets Claims Cash $61,000Accounts Payable $25,000 Accounts Receivable 45,000 Common Stock90,000 Land 27,000 Retained Earnings 18,000 Totals $133,000$133,000 The following accounting events apply to Oaksâs 2010fiscal year: Jan. 1 Acquired an additional $70,000 cash from theissue of common stock. April 1 Paid $6,600 cash in advance for aone-year lease for office space. June 1 Paid a $3,000 cash dividendto the stockholders. July 1 Purchased additional land that cost$25,000 cash. Aug. 1 Made a cash payment on accounts payable of$13,000. Sept. 1 Received $8,400 cash in advance as a retainer forservices to be performed monthly during the next eight months.Sept. 30 Sold land for $15,000 cash that had originally cost$15,000. Oct. 1 Purchased $900 of supplies on account. Dec. 31Earned $80,000 of service revenue on account during the year. 31Received $66,000 cash collections from accounts receivable. 31Incurred $16,000 other operating expenses on account during theyear. 31 Recognized accrued salaries expense of $5,000. 31 Had $250of supplies on hand at the end of the period. 31 The land purchasedon July 1 had a market value of $28,000. Required: Based on thepreceding information, answer the following questions. Allquestions pertain to the 2010 financial statements. (Hint: Recordthe events in general ledger accounts under an accounting equationbefore answering the questions.)

a. What two additional adjusting entries need to be made at theend of the year?

b. What amount would be reported for land on the balancesheet?

c. What amount of net cash flow from operating activities wouldOaks report on the statement of cash flows?

d. What amount of rent expense would Oaks report in the incomestatement?

e. What amount of total liabilities would Oaks report on thebalance sheet?

f. What amount of supplies expense would Oaks report on theincome statement?

g. What amount of unearned revenue would Oaks report on thebalance sheet?

h. What amount of net cash flow from investing activities wouldOaks report on the statement of cash flows?

i. What amount of total expenses would Oaks report on the incomestatement?

j. What total amount of service revenues would Oaks report onthe income statement? k. What amount of cash flows from financingactivities would Oaks report on the statement of cash flows?

l. What amount of net income would Oaks report on the incomestatement?

m. What amount of retained earnings would Oaks report on thebalance sheet? PLEASE ANSWER (A TO M ) ASAP

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ACCT1021 Chapter Notes - Chapter 1: Investment, International Financial Reporting Standards, Financial Accounting Standards Board

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