Chapter 7 Accounting Information Systems Questions 1. What is the right side of an account called? 2. What is the left side of an account called? 3. An organizational scheme used to classify accounts as assets‚ liabilities‚ or owners’ equity is known as what? 4. What journal is used to record both the account(s) to be debited and the account(s) to be credited? 5. A collection of specific asset‚ liability and owners’ equity accounts in known as what? 6. What type of
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hot summer day‚ it has tremendous consequences on the environment. The use of chlorine greatly affects the plants and wildlife surrounding the area. It can cause plants to wither away‚ turn yellow‚ and even die. The chlorine can cause the tissue of leaves to brown or rot. The toxicity can even cause microorganisms in the surrounding soil to die. Chlorine is also used in many household items‚ causing further damage to humans and the environment. This chlorine toxicity can come from multiple different
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servers‚ two cooks‚ one dishwasher and a clean-up person. She had a bar‚ 15 barstools‚ 4 tables‚ 40 chairs‚ 4 television sets‚ and one satellite dish. She had an oven‚ stove‚ grill‚ refrigerator‚ sinks‚ dishes‚ and glassware. Carry started this business with $50‚000 of her own money‚ and she borrowed $150‚000 from the bank. From this description‚ list each of the scarce resources that are used in Carry Yoki’s Lounge. Entrepreneurial resource: Carry Yoki. Labor resources: 2 bartenders‚ 3 servers
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Chapter 02 Reporting Intercorporate Interests Multiple Choice Questions On January 1‚ 2007‚ Rotor Corporation acquired 30 percent of Stator Company ’s stock for $150‚000. On the acquisition date‚ Stator reported net assets of $450‚000 valued at historical cost and $500‚000 stated at fair value. The difference was due to the increased value of buildings with a remaining life of 15 years. During 2007 and 2008 Stator reported net income of $25‚000 and $15‚000 and paid dividends of $10
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building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31‚ 2012‚ the carrying value of the building was $30 million and its tax basis was $20 million. At December 31‚ 2013‚ the carrying value of the building was $28 million and its tax basis was $13 million. There were no other temporary differences and no permanent differences. Pretax accounting income for 2013 was $45 million.On January 1‚ 2010‚ Ameen Company
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policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31? (Round your answer to 1 decimal places.) $2‚052.00. $684.00. $1‚539.00. $513.00. $57.00. 5. A company had no office supplies available at the beginning of the year. During the year‚ the company purchased $250 worth of office supplies. On December 31‚ $75 worth of office supplies remained. How much should the company report as office
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Under US GAAP and IFRS When companies report the financial statements‚ it should be understandable‚ relevant‚ reliable‚ comparable‚ and objective because those statements are sources to the investors. So‚ if the statements showed profitability and were reliable and relevant‚ the investors may start investing in the company. When reporting financial statements‚ there are two possible ways‚ GAAP or IFRS. Firstly‚ General Accepted Accounting Principles (GAAP) is a common accounting principle‚ procedure
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1. According to the cost allocation methods used in the company’s accounting system that are described in the Production Cost Report‚ if a company employs 100 PATs at a total labor cost of $15‚000‚000 (including wages‚ fringes‚ incentives‚ overtime‚ training‚ and severance expenses)‚ assembles and ships 800‚000 entry-level cameras and 200‚000 multi-featured cameras over the course of a year‚ has revenues of $100 million from sales of entry level cameras‚ and revenues of $150 million from the sale
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1. Sources of GAAP and basic framework and concepts ........................................................... 3 2. Reporting net income ................................................................................................... 14 3. Income statement: Income from continuing operations ................................................................................ 17 Discontinued operations ...............................................................................
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1. What is the most important difference between a corporation and all other organizational forms? 2. What does the phrase limited liability mean in a corporate context? 3. Which organizational forms give their owners limited liability? 4. What are the main advantages and disadvantages of organizing a firm as a corporation? 5. Explain the difference between an S corporation and a C corporation. 6. You are a shareholder in a C corporation. The corporation earns $2 per share before taxes
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