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    Financial and Managerial Accounting

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    This document contains sample exam questions and exercises about accounting fundamentals. It tests understanding of key concepts like the accounting equation and how various business transactions affect the basic elements of assets, liabilities, and stockholders' equity. For example, one question asks students to determine how investing cash in the business, paying utilities, and other routine transactions would impact the accounting equation. Another asks whether revenues, stock issuances, dividends or expenses would increase or decrease stockholders' equity. The document provides a way for students to assess their mastery of introductory accounting principles.

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    Financial and Managerial Accounting

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    cons the
    310 views1 page
    This document contains sample exam questions and exercises about accounting fundamentals. It tests understanding of key concepts like the accounting equation and how various business transactions affect the basic elements of assets, liabilities, and stockholders' equity. For example, one question asks students to determine how investing cash in the business, paying utilities, and other routine transactions would impact the accounting equation. Another asks whether revenues, stock issuances, dividends or expenses would increase or decrease stockholders' equity. The document provides a way for students to assess their mastery of introductory accounting principles.

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    Financial and Managerial Accounting (67)

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    Financial and Managerial Accounting (67)

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    This document contains sample exam questions and exercises about accounting fundamentals. It tests understanding of key concepts like the accounting equation and how various business transactions affect the basic elements of assets, liabilities, and stockholders' equity. For example, one question asks students to determine how investing cash in the business, paying utilities, and other routine transactions would impact the accounting equation. Another asks whether revenues, stock issuances, dividends or expenses would increase or decrease stockholders' equity. The document provides a way for students to assess their mastery of introductory accounting principles.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    310 views1 page

    Financial and Managerial Accounting

    Uploaded by

    cons the
    This document contains sample exam questions and exercises about accounting fundamentals. It tests understanding of key concepts like the accounting equation and how various business transactions affect the basic elements of assets, liabilities, and stockholders' equity. For example, one question asks students to determine how investing cash in the business, paying utilities, and other routine transactions would impact the accounting equation. Another asks whether revenues, stock issuances, dividends or expenses would increase or decrease stockholders' equity. The document provides a way for students to assess their mastery of introductory accounting principles.

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    of 1

    Chapter 1 Introduction to Accounting and Business

    33

    EX 1-7  Accounting equation OBJ. 3, 4


    b. $890,000 Mega Concepts is a motivational consulting business. At the end of its accounting period,
    December 31, 2013, Mega Concepts has assets of $1,250,000 and liabilities of $475,000.
    Using the accounting equation and considering each case independently, determine the
    following amounts:
    a. Stockholders’ equity as of December 31, 2013.
    b. Stockholders’ equity as of December 31, 2014, assuming that assets increased by
    $225,000 and liabilities increased by $110,000 during 2014.
    c. Stockholders’ equity as of December 31, 2014, assuming that assets decreased by
    $300,000 and liabilities increased by $90,000 during 2014.
    d. Stockholders’ equity as of December 31, 2014, assuming that assets increased by
    $550,000 and liabilities decreased by $135,000 during 2014.
    e. Net income (or net loss) during 2014, assuming that as of December 31, 2014,
    assets were $1,500,000, liabilities were $375,000, and no additional capital stock
    was issued or dividends paid.

    EX 1-8  Asset, liability, and stockholders’ equity items OBJ. 3


    Indicate whether each of the following is identified with (1) an asset, (2) a liability, or
    (3) stockholders’ equity:
    a. accounts payable
    b. cash
    c. fees earned
    d. land
    e. supplies
    f. wages expense

    EX 1-9  Effect of transactions on accounting equation OBJ. 4


    Describe how the following business transactions affect the three elements of the ac-
    counting equation.
    a. Invested cash in business.
    b. Paid for utilities used in the business.
    c. Purchased supplies for cash.
    d. Purchased supplies on account.
    e. Received cash for services performed.

    EX 1-10  Effect of transactions on accounting equation OBJ. 4


    a. (1) increase a. A vacant lot acquired for $180,000 is sold for $440,000 in cash. What is the effect of the sale
    $260,000 on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity?
    b. Assume that the seller owes $69,000 on a loan for the land. After receiving the $440,000
    cash in (a), the seller pays the $69,000 owed. What is the effect of the payment on
    the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity?
    c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or
    Stockholders’ Equity) of the accounting equation? Explain.

    EX 1-11  Effect of transactions on stockholders’ equity OBJ. 4


    Indicate whether each of the following types of transactions will either (a) increase stock-
    holders’ equity or (b) decrease stockholders’ equity:
    1. expenses
    2. issuing capital stock in exchange for cash
    3. dividends
    4. revenues

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