Question: Which of the following items are liabilities

> Given the characteristics of useful accounting information, complete each of the following statements. (a) For information to be _____, it should have predictive value, confirmatory value, and be material. (b) _____ is the quality of information that giv

> The accompanying chart shows the qualitative characteristics of useful accounting information. Fill in the blanks. Fundamental Qualities Enhancing Qualities Usefulness Relevance (f) (a) (g) (b) (h) (c) Understandability Faithful Representation (d) Ne

> The trial balance of Yewlett Company includes the following balance sheet accounts, which may require adjustment. For each account that requires adjustment, indicate (a) the type of adjusting entry (prepaid expense, unearned revenue, accrued revenue, or

> Moteki Company accumulates the following adjustment data at December 31. Indicate (a) the type of adjustment (prepaid expense, accrued revenue, and so on), and (b) the status of accounts before adjustment (for example, “assets understated and revenues

> The ledger of Jung Company includes the following accounts. Explain why each account may require adjustment. (a) Prepaid Insurance. (b) Depreciation Expense. (c) Unearned Service Revenue. (d) Interest Payable.

> Selected journal entries for the Nikolai Company are presented in BE2-7. Post the transactions using the standard form of account. Reference Data BE 2-7: J1 Date Account Titles and Explanation Ref. Debit Credit Мay 5 Accounts Receivable 5,000 Servic

> (a) What is a ledger? (b) What is a chart of accounts and why is it important?

> Bombeck Inc. has the following transactions during August of the current year. Indicate (a) the effect on the accounting equation and (b) the debit-credit analysis illustrated on pages 64–68 of the textbook. Aug. 1 Opens an office as a financial advisor

> Evan Saunders, a fellow student, is unclear about the basic steps in the recording process. Identify and briefly explain the steps in the order in which they occur.

> Transactions for the Sheldon Cooper Company, which provides welding services, for the month of June are presented below. Identify the accounts to be debited and credited for each transaction. June 1 Sheldon Cooper invests $4,000 cash in exchange for

> For each of the following accounts indicate the effects of (a) a debit and (b) a credit on the accounts and (c) the normal balance of the account. 1. Accounts Payable. 4. Accounts Receivable. 2. Advertising Expense. 5. Common Stock. 3. Service Revenue.

> Indicate whether the following items would appear on the income statement (IS), balance sheet (BS), or retained earnings statement (RE). _______ (a) Notes payable _______ (d) Cash _______ (b) Advertising expense _______ (e) Service revenue _______ (c)

> Presented below are three transactions. Mark each transaction as affecting common stock (C), dividends (D), revenue (R), expense (E), or not affecting stockholders’ equity (NSE). _______ (a) Received cash for services performed. _______ (b) Paid cash to

> Classify each of the following items as dividends (D), revenue (R), or expense (E). _______ (a) Advertising expense _______ (e) Dividends _______ (b) Service revenue _______ (f) Rent revenue _______ (c) Insurance expense _______ (g) Utilities exp

> Follow the same format as BE1-6 above. Determine the effect on assets, liabilities, and stockholders’ equity of the following three transactions. (a) Stockholders invested cash in the business for common stock. (b) Paid a cash dividend. (c) Received cash

> Presented below are three business transactions. On a sheet of paper, list the letters (a), (b), and (c) with columns for assets, liabilities, and stockholders’ equity. For each column, indicate whether the transactions increased (+), decreased (−), or h

> Indicate whether each of the following items is an asset (A), liability (L), or part of stockholders’ equity (SE). _______ (a) Accounts receivable _______ (d) Supplies _______ (b) Salaries and wages payable _______ (e) Dividends _______ (c) Equipment

> (a) Should business transaction debits and credits be recorded directly in the ledger accounts? (b) What are the advantages of first recording transactions in the journal and then posting to the ledger?

> Use the accounting equation to answer each of the following questions. (a) The liabilities of Olga Company are $90,000. Common stock account is $150,000; dividends are $40,000; revenues, $450,000; and expenses, $320,000. What is the amount of Olga Compan

> At the beginning of the year, Canon Company had total assets of $870,000 and total liabilities of $500,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amount

> Dan Fineman, the president of King Company, is pleased. King substantially increased its net income in 2019 while keeping its unit inventory relatively the same. Howard Gross, chief accountant, cautions Dan, however. Gross says that since King changed it

> (a) What is the primary objective of financial reporting? (b) Identify the characteristics of useful accounting information.

> Why is it possible to prepare financial statements directly from an adjusted trial balance?

> “An adjusting entry may affect more than one balance sheet or income statement account.” Do you agree? Why or why not?

> One-half of the adjusting entry is given below. Indicate the account title for the other half of the entry. (a) Salaries and Wages Expense is debited. (b) Depreciation Expense is debited. (c) Interest Payable is credited. (d) Supplies is credited. (e) Ac

> For each of the following items before adjustment, indicate the type of adjusting entry (prepaid expense, unearned revenue, accrued revenue, or accrued expense) that is needed to correct the misstatement. If an item could result in more than one type of

> On January 9, a company pays $5,000 for salaries and wages of which $2,000 was reported as Salaries and Wages Payable on December 31. Give the entry to record the payment.

> A company makes an accrued revenue adjusting entry for $900 and an accrued expense adjusting entry for $700. How much was net income understated prior to these entries? Explain.

> Are the following events recorded in the accounting records? Explain your answer in each case. (a) The president of the company dies. (b) Supplies are purchased on account. (c) An employee is fired.

> A company fails to recognize an expense incurred but not paid. Indicate which of the following accounts is debited and which is credited in the adjusting entry: (a) asset, (b) liability, (c) revenue, or (d) expense.

> Whistler Corp. performed services for a customer but has not yet recorded payment, nor has it recorded any entry related to the work. Which of the following accounts are involved in the adjusting entry: (a) asset, (b) liability, (c) revenue, or (d) e

> What is the debit/credit effect of an unearned revenue adjusting entry?

> J. Brownlee Company purchased equipment for $18,000. By the current balance sheet date, $6,000 had been depreciated. Indicate the balance sheet presentation of the data.

> “Depreciation is a valuation process that results in the reporting of the fair value of the asset.” Do you agree? Explain.

> Indicate whether the following accounts generally will have (a) debit entries only, (b) credit entries only, or (c) both debit and credit entries. (1) Cash. (2) Accounts Receivable. (3) Dividends. (4) Accounts Payable. (5) Salaries and Wages Expense. (

> For the following transactions, indicate the account debited and the account credited. (a) Supplies are purchased on account. (b) Cash is received on signing a note payable. (c) Employees are paid salaries in cash.

> Indicate whether each of the following accounts is an asset, a liability, or a stockholders’ equity account and whether it has a normal debit or credit balance: (a) Accounts Receivable, (b) Accounts Payable, (c) Equipment, (d) Dividends, and (e) Sup

> State the rules of debit and credit as applied to (a) asset accounts, (b) liability accounts, and (c) the stockholders’ equity accounts (revenue, expenses, dividends, common stock, and retained earnings).

> Olga Conrad, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Is Olga correct? Discuss.

> Can a business enter into a transaction in which only the left side of the basic accounting equation is affected? If so, give an example.

> The basic accounting equation is Assets = Liabilities + Stockholders’ equity. Replacing the words in that equation with dollar amounts, what is Apple’s accounting equation at September 26, 2015?

> What are the normal balances for Apple’s Cash, Accounts Payable, and Interest Expense accounts?

> Two students are discussing the use of a trial balance. They wonder whether the following errors, each considered separately, would prevent the trial balance from balancing. What would you tell them? (a) The bookkeeper debited Cash for $600 and credited

> Juan Kirby is confused about how accounting information flows through the accounting system. He believes the flow of information is as follows. (a) Debits and credits posted to the ledger. (b) Business transaction occurs. (c) Information entered in the j

> Describe a compound entry, and provide an example.

> Listed below are some items found in the financial statements of Jonas Co. Indicate in which financial statement(s) the following items would appear. (a) Service revenue. (e) Retained earnings. (b) Equipment. (f) Salaries and wages (c) Advertising ex

> Indicate how the following business transactions affect the basic accounting equation. (a) Paid cash for janitorial services. (b) Purchased equipment for cash. (c) Invested cash in the business for stock. (d) Paid accounts payable in full.

> The account number is entered as the last step in posting the amounts from the journal to the ledger. What is the advantage of this step?

> (a) When entering a transaction in the journal, should the debit or credit be written first? (b) Which should be indented, the debit or credit?

> (a) What is the primary source document for recording (1) cash sales and (2) credit sales? (b) Using XXs for amounts, give the journal entry for each of the transactions in part (a).

> (a) Define the terms assets, liabilities, and stockholders’ equity. (b) What items affect stockholders’ equity?

> What is the basic accounting equation?

> What are the basic steps in the recording process?

> What are the three basic forms of profit-oriented business organizations?

> What is the economic entity assumption?

> What is the monetary unit assumption?

> What is the normal balance for each of the following accounts? (a) Accounts Receivable. (b) Cash. (c) Dividends. (d) Accounts Payable. (e) Service Revenue. (f) Salaries and Wages Expense. (g) Common Stock.

> “Bookkeeping and accounting are the same.” Do you agree? Explain.

> What uses of financial accounting information are made by (a) investors and (b) creditors?

> Tom Dingel, a fellow student, contends that the double-entry system means each transaction must be recorded twice. Is Tom correct? Explain.

> Explain the differences between depreciation expense and accumulated depreciation.

> “The terms debit and credit mean increase and decrease, respectively.” Do you agree? Explain.

> “Accounting is ingrained in our society and it is vital to our economic system.” Do you agree? Explain.

> Liz Kelso is reviewing the principle of segregation of duties. What are the two common applications of this principle?

> In the corner grocery store, all sales clerks make change out of one cash register drawer. Is this a violation of internal control? Why?

> What principles of internal control apply to most organizations?

> Discuss how the Sarbanes-Oxley Act has increased the importance of internal control to top managers of a company.

> “Internal control is concerned only with enhancing the accuracy of the accounting records.” Do you agree? Explain.

> At what amount does Apple report cash and cash equivalents in its 2015 consolidated balance sheet?

> Riverside Fertilizer Co. owns the following assets at the balance sheet date. Cash in bank—savings account……………$ 8,000 Cash on hand………………………………………….850 Cash refund due from the IRS………………. 1,000 Checking account balance……………………14,000 Postdated checks…………

> Anna Korte is confused about the lack of agreement between the cash balance per books and the balance per bank. Explain the causes for the lack of agreement to Anna, and give an example of each cause.

> What are the advantages of using a journal in the recording process?

> “The use of a bank contributes significantly to good internal control over cash.” Is this true? Why or why not?

> What is the essential feature of an electronic funds transfer (EFT) procedure?

> (a) What is a voucher system? (b) What principles of internal control apply to a voucher system?

> Ken Deangelo Company’s internal controls over cash disbursements provide for the treasurer to sign checks imprinted by a check-writing machine in indelible ink after comparing the check with the approved invoice. Identify the internal control principles

> “To have maximum effective internal control over cash disbursements, all payments should be made by check.” Is this true? Explain.

> At Kellum Wholesale Company, two mail clerks open all mail receipts. How does this strengthen internal control?

> What principle(s) of internal control is (are) involved in making daily cash counts of over-the-counter receipts?

> What internal control objectives are met by physical controls?

> A local bank reported that it lost $150,000 as the result of an employee fraud. Edward Jasso is not clear on what is meant by an “employee fraud.” Explain the meaning of fraud to Edward and give an example of frauds that might occur at a bank.

> “The selection of an inventory cost flow method is a decision made by accountants.” Do you agree? Explain. Once a method has been selected, what accounting requirement applies?

> Juana Perez is the owner of a successful printing shop. Recently, her business has been increasing, and Juana has been thinking about changing the organization of her business from a proprietorship to a corporation. Discuss some of the advantages Juana w

> Describe the parts of a T-account.

> What are the components of a hospital’s net patient service revenue?

> Select the correct response for each of the following. (Note: The following data are for items 1 through 3.) Under its established rate structure, Dodge Hospital would have earned patient service revenue of $5,000,000 for the year ended December 31, 2

> 1. Which of the following statements is correct? I. I n the government wide financial statements, internal service fund activities are reported in the Governmental Activities column. II. The total balance for the governmental funds that is reported

> What is the basis of accounting in a hospital’s general fund? In its restricted funds?

> 1. Which of the following accounts could be included in an enterprise fund’s statement of net position? 2. Customers’ meter deposits that cannot be spent for normal operating purposes would most likely be classified

> Select the correct answer for each of the following. 1. On December 31, 20X1, Tiffin Township paid a contractor $2,000,000 for the total cost of a new firehouse built in 20X1 on township-owned land. Financing was by means of a $1,500,000 general obl

> 7. On the statement of net position prepared at June 30, 20X5, what amount should be reported for total net position? a. $8,839,000. b. $7,804,000 c. $7,150,000 d. $8,189,000 8. On the statement of net position prepared at June

> Should a rotary club, an ONPO, report depreciation expense? Why or why not?

> Select the correct response to each of the following. 1. The government wide financial statements use the a. Economic resources measurement focus and the accrual basis of accounting. b. Current financial resources measurement focus and the accrual

> The numbered items on the left consist of a variety of transactions and events that occurred in the capital projects and debt service funds of Walton City for the year ended June 30, 20X9. Items A, B, and C on the right represent three categories that ar

> The numbered items on the left consist of a variety of transactions that occurred in Jeffersen City’s water utility enterprise fund for the year ended June 30, 20X9. Items A, B, C, and D on the right represent the four categories of cas

> The numbered items on the left consist of a variety of transactions that occur in a municipality. The lettered items on the right consist of various ways to record the transactions. Select the appropriate method for recording each transaction. Some trans

> Mountain View City is preparing its government wide financial statements for the year. As of the year-end, the city has determined the following information for its capital assets, exclusive of its infrastructure assets: 1. On the government wide state

> 1. Which basis of accounting should a voluntary health and welfare organization use? a. Cash basis for all funds. b. Modified accrual basis for all funds. c. Accrual basis for all funds. d. Accrual basis for some funds and modified ac

> On August 1, 20X6, the City of Rock haven received $1,000,000 from a prominent citizen to establish a private-purpose trust fund. The donor stipulated that the cash be permanently invested and that the earnings from the investments be spent to support lo

> Do agency funds have a net fund balance? Why or why not?