Questions from Financial Accounting

Q: Boehms, Inc., has cash of $36,000,

Boehms, Inc., has cash of $36,000, supplies costing $1,500, and stockholders’ equityof $28,000. Determine the liabilities of the business. Write the accounting equation forBoehms, Inc.

Q: What type of account (asset, liability, revenue, or

What type of account (asset, liability, revenue, or expense) would Joe’s Towing Company debit when it pays (credits) cash for each of the following transactions? a. Pays $100 to fill tow truck with ga...

Q: Which of the following accounts is not closed? a.

Which of the following accounts is not closed? a. Salaries Expense b. Dividends c. Accumulated Depreciation, Equipment d. Service Revenue

Q: Backcountry, Inc., an outdoor magazine, collected $2,

Backcountry, Inc., an outdoor magazine, collected $2,700 on June 1 for one-year subscriptions from subscribers in advance. Journalize and post the adjusting entry on December 31 to record the revenue...

Q: What is the fundamental accounting equation? Define each of the components

What is the fundamental accounting equation? Define each of the components of thisequation.

Q: What does the term “free on board” mean? Why

What does the term “free on board” mean? Why is this an important term to understand if you are involved in making decisions about the purchasing of inventory or the setting of prices for your product...

Q: An asset is classified as current if it a.

An asset is classified as current if it a. will last longer than one year. b. will become cash, be sold, or be used up within 12 months. c. was purchased within the last six months. d. was purchased...

Q: Suppose Peter’s Hardware sells merchandise on account, terms 2/10

Suppose Peter’s Hardware sells merchandise on account, terms 2/10, n/30, for $640 (cost of the inventory is $360) on March 17, 2016. Peter’s Hardware later received $185 of goods (cost, $110) as sales...

Q: Describe some business and economic conditions that might make the lower-

Describe some business and economic conditions that might make the lower-of-cost-or market rule more likely to result in a write-down of inventory.

Q: Which of the following is most closely linked to the accounting principle

Which of the following is most closely linked to the accounting principle of conservatism? a. Consistency principle b. Disclosure principle c. Lower-of-cost-or-market rule d. Materiality concept