financial statements are based on the accounting equation. This equation presents the resources of a company and the claims to those resources. Assets are economic resources that are expected to produce a benefit in the Future Liabilities are outsider claims. They are debts that are payable to outsiders‚ called creditors. Owners’ equity (also called capital or stockholders equity for a corporation) represents the insider claims of a business. The accounting equation shows the relationship among assets
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$34‚000. d. $178‚000. In the U.S.‚ generally accepted accounting principles are established: a. directly by the 1933 Securities Act. b. by the Public Company Accounting Oversight Board. c. by the Financial Accounting Standards Board. d. by the Association of Certified Public Accountants. On March 1‚ 2006‚ the premium on a two-year insurance policy on equipment was paid amounting to $1‚800. At the end of 2006 (end of the accounting period)‚ the financial statements for 2006‚ would report
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In the power point one had to purchase their own drive-in theatre. One invested $100‚000 in their business. The $100‚000 would fall as a line item credit under assets and shareholder’s equity. And each side had to balance each other out. Next we had to invest $25‚000 for business supplies. This will fall as a debit and credit line item under assets because we spend cash and the $25‚000 would increase the value of the business. Next we had to but the land for $150‚000. This was a debit and credit
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rent of $1‚000 30-May Smith paid dividends to himself of $1‚400 Requirements: 1 Enter the transactions for May into the accounting equation‚ calculating new balances after each entry. Assets = Liabilities + Stockholders’ Equity Cash + Accounts receivable + Supplies + Equipment Accounts payable Common stock + Service revenue - Salaries expense
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Week 1 - Checkpoint My favorite place is Starbucks. So I will choose that to be the company I will write about for this assignment. Starbucks Corporation has been able to grow revenues from $11.7B to $13.3B. Most impressively‚ the company has been able to reduce the percentage of sales devoted to selling‚ general and administrative costs from 37.08% to 35.38%. This was a driver that led to a bottom line growth from $1.2B to $1.4B. The pertinent statistics for this piece are as follows. During
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and liabilities. liabilities and stockholders’ equity. assets only. 7) Using accrual accounting‚ expenses are recorded and reported only: A. B. when they are incurred whether or not cash is paid. when they are incurred and paid at the same time. C. D. if they are paid before they are incurred. if they are paid after they are incurred. 8) A small company may be able to justify using a cash basis of accounting if
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Lecture 2: Study Week 2 The Accounting Equation & the Double Entry System Objectives for today 1. Analyzing transactions using the Accounting Equation 2. Next Week: How do firms actually measure Income?: Accrual vs. Cash Accounting g 3. Next Week: Determine when a company should record revenues and Expenses: The Matching Principle The Operating Cycle Start with cash and end with more cash Collect cash from customers Purchase inventory Make sales to customers The Recording
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WEEK THREE LEARNING TEAM B ASSIGNMENT PROBLEM 1-30A OSHEA ENTERPRISES INCOME STATEMENT AT DECEMBER 31‚ 2002 REVENUE $48‚000.00 OPERATING EXPENSES 32‚000.00 NET INCOME (change in Net Assets) $16‚000.00 OSHEA ENTERPRISES STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY AT DECEMBER 31‚ 2002
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ACCT 101 PRACTICE QUESTIONS by Adekoya Ayodele OBJECTIVE The objective of this project is to enable student to record transactions into the accounting cycle. The second objective is to enable them record adjustments and post them to the General Ledger The third Objective is to enable them prepare accurate Income Statements and Balance Sheets. INSTRUCTIONS: Each group is required to 1. Journalize the transactions 2. Post the transactions from journal to ledgers. 3. Prepare
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Problem Set 2: Week Four ACC/300 P12‑1A You are given the following transactions that occurred in the latest fiscal year. Distinguish among operating‚ investing‚ and financing activities. Complete the table‚ indicating whether each item (1) should be reported as an operating (O) activity‚ investing (I) activity‚ financing (F) activity‚ or as a noncash (NC) transaction reported in a separate schedule‚ and (2) represents a cash inflow or cash outflow or has no cash flow effect
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