Question: Many accounting professionals work in one of

> All business decisions involve aspects of risk and return. Required Identify both the risk and the return in each of the following activities: 1. Investing $2,000 in a 5% savings account. 2. Placing a $2,500 bet on your favorite sports team. 3. Investin

> On January 20, 2015, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a

> AT&T and Verizon produce and market telecommunications products and are competitors. Key financial figures (in $ millions) for these businesses for a recent year follow. Required 1. Compute return on assets for (a) AT&T and (b) Verizon. 2. Which

> Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures (in $ millions) for these businesses for a recent year follow. Required 1. Compute return on assets for (a) Coca-Cola and (b) PepsiCo. 2. Which c

> Ski-Doo Company manufactures, markets, and sells snowmobile and snowmobile equipment and accessories. The average total assets for Ski-Doo is $3,000,000. In its most recent year, Ski-Doo reported net income of $201,000 on revenues of $1,400,000. Required

> Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent year, Kyzera reported net income of $65,000 on revenues of $475,000. Required 1. What is Kyzera’s return on assets? 2. Does r

> Rivera Roofing Company, owned by Reyna Rivera, began operations in July and completed these transactions during that first month of operations. July 1 Reyna Rivera invested $80,000 cash in the company. 2 The company rented office space and paid $700 cas

> Sanyu Sony started a new business and completed these transactions during December. Dec. 1 Sanyu Sony transferred $65,000 cash from a personal savings account to a checking account in the name of Sony Electric. 2 The company rented office space and paid

> Neva Nadal started a new business, Nadal Computing, and completed the following transactions during its first year of operations. a. Neva Nadal invests $90,000 cash and office equipment valued at $10,000 in the company. b. The company purchased a $150,00

> Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. a. Lita Lopez invests $70,000 cash and office equipment valued at $10,000 in the company. b. The company purchased a $150,000

> Nina Niko launched a new business, Niko’s Maintenance Co., that began operations on June 1. The following transactions were completed by the company during that first month. June 1 Nina Niko invested $130,000 cash in the company. 2 The

> Gabi Gram started The Gram Co., a new business that began operations on May 1. The Gram Co. completed the following transactions during its first month of operations. May 1 G. Gram invested $40,000 cash in the company. 1 The company rented a furnished of

> Key figures for the recent two years of both Apple and Google follow. Required 1. Compute the current ratio for both years for both companies. 2. Which company has the better ability to pay short-term obligations according to the current ratio? 3. Anal

> Following is selected financial information of Kia Company for the year ended December 31, 2015. Required Prepare the 2015 statement of cash flows for Kia Company. Cash used by investing activities $(2,000) 1,200 Net increase in cash .. Cash used by

> The following financial statement information is from five separate companies. Required 1. Answer the following questions about Company V: a. What is the amount of equity on December 31, 2014? b. What is the amount of equity on December 31, 2015? c. Wh

> The following financial statement information is from five separate companies: Required 1. Answer the following questions about Company A: a. What is the amount of equity on December 31, 2014? b. What is the amount of equity on December 31, 2015? c. Wh

> Identify how each of the following separate transactions affects financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction

> Identify how each of the following separate transactions affects financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction

> What is the purpose of accounting in society?

> Indicate the financial statement on which each of the following items appears. Use I for income statement, E for statement of owner’s equity, and B for balance sheet. a. Services Revenue b. Interest Payable c. Accounts Receivable d. Salaries Expense

> Classify each of the following accounts as an asset (A), liability (L), or equity (EQ) account. a. Cash b. Prepaid Rent c. Office Supplies d. Prepaid Insurance e. Office Equipment f. Owner, Capital g. Accounts Payable h. Unearned Rent Revenue i. Ow

> Identify whether a debit or credit yields the indicated change for each of the following accounts. a. To increase Land b. To decrease Cash c. To increase Fees Earned (Revenues) d. To increase Office Expense e. To decrease Unearned Revenue f. To decr

> Identify which accounting principle or assumption best describes each of the following practices: a. In December 2014, Chavez Landscaping received a customer’s order and cash prepayment to install sod at a new house that would not be ready for installati

> Indicate whether a debit or credit decreases the normal balance of each of the following accounts. a. Interest Payable b. Service Revenue c. Salaries Expense d. Accounts Receivable e. Owner, Capital f. Prepaid Insurance g. Buildings h. Interest Re

> Identify each of the following terms/phrases as either an accounting: (a) principle, (b) assumption, or (c) constraint. 1. Materiality 2. Time period 3. Benefit exceeds cost 4. Revenue recognition

> Identify the items from the following list that are likely to serve as source documents. a. Sales ticket b. Trial balance c. Balance sheet d. Telephone bill e. Invoice from supplier f. Company revenue account g. Income statement h. Bank statement i

> The following are common categories on a classified balance sheet. A. Current assets B. Long-term investments C. Plant assets D. Intangible assets E. Current liabilities F. Long-term liabilities For each of the following items, select the letter that ide

> Identify which of the following accounts would be included in a post-closing trial balance. a. Accounts Receivable b. Salaries Expense c. Goodwill d. Land e. Income Tax Expense f. Salaries Payable

> In preparing a work sheet, indicate the financial statement Debit column to which a normal balance in the following accounts should be extended. Use IS for the Income Statement Debit column and BS for the Balance Sheet and Statement of Owner’s Equity Deb

> Cal Consulting initially records prepaid and unearned items in income statement accounts. Given this company’s accounting practices, which of the following applies to the preparation of adjusting entries at the end of its first accounting period? a. Unea

> Identify the following users as either external users (E) or internal users (I). a. Customers b. Suppliers c. Brokers d. Business press e. Managers f. District attorney g. Shareholders h. Lenders i. Controllers j. FBI and IRS k. Consumer group l. Sale

> Answer each of the following questions related to international accounting standards. a. Explain how the closing process is different between accounting under IFRS versus U.S. GAAP. b. What basic principle do U.S. GAAP and IFRS rely upon in recording the

> Answer each of the following questions related to international accounting standards. a. Do financial statements prepared under IFRS normally present assets from least liquid to most liquid or vice versa? b. Do financial statements prepared under IFRS no

> Samsung (Samsung.com) is a leading manufacturer of consumer electronic products. The following selected information is available from Samsung’s financial statements along with that from Apple and Google. Required 1. Compute profit mar

> Match each of the numbered descriptions with the term or phrase it best reflects. Indicate your answer by writing the letter for the term or phrase in the blank provided. A. SASB B. Principles C. Social dimension D. Sustainability E. Conceptual framewo

> Answer each of the following questions related to international accounting standards. a. The International Accounting Standards Board (IASB) issues preferred accounting practices that are referred to as what? b. The FASB and IASB are working on a converg

> List the following steps in preparing a work sheet in their proper order by writing a number from 1 through 5 in the blank space provided. ______ a. Total the statement columns, compute net income (loss), and complete work sheet. ______ b. Extend adjuste

> Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). 1. Cost of sales (expense) 2. Service revenue 3. Wages expense 4. Owner withdrawal

> Classify the following adjusting entries as involving prepaid expenses (PE), unearned revenues (UR), accrued expenses (AE), or accrued revenues (AR). a. To record revenue earned that was previously received as cash in advance. b. To record wages expense

> Choose from the following list of terms/phrases to best complete the statements below. a. Fiscal year b. Timeliness c. Calendar year d. Accounting period e. Annual financial statements f. Interim financial statements g. Natural business year h. Tim

> Identify the normal balance (debit or credit) for each of the following accounts. a. Fees Earned (Revenues) b. Office Supplies c. Owner, Withdrawals d. Wages Expense e. Accounts Receivable f. Prepaid Rent g. Wages Payable h. Building i. Owner, Capi

> Choose from the following list of terms/phrases to best complete the following statements. a. Accounting b. Identifying c. Recording d. Communicating e. Recordkeeping (bookkeeping) f. Technology g. Language of business h. Governmental 1. reduces the t

> In the blank space beside each adjusting entry, enter the letter of the explanation A through F that most closely describes the entry. A. To record this period’s depreciation expense. B. To record accrued salaries expense. C. To record

> Key comparative figures ($ millions) for both Apple and Google follow. Required 1. What is the total amount of assets invested in (a) Apple and (b) Google? 2. What is the return on assets for (a) Apple and (b) Google? Apple’s beginnin

> Enter the number for the item that best completes each of the descriptions below. 1. Chart 2. General ledger a. A ______ of accounts is a list of all accounts a company uses. b. The ______ is a record containing all accounts used by a company.

> Enter the number for the item that best completes each of the descriptions below. 1. Asset 2. Equity 3. Account 4. Liability 5. Three a. Accounts are arranged into ______ general categories. b. Owner, Capital and Owner, Withdrawals are examples of ___

> The following describe several different business organizations. Determine whether the description refers to a sole proprietorship (SP), partnership (P), or corporation (C). a. Micah Douglas and Nathan Logan own Financial Services, a financial services p

> Order the following steps in the accounting process that focus on analyzing and recording transactions. a. Prepare and analyze the trial balance. b. Analyze each transaction from source documents. c. Record relevant transactions in a journal. d. Post jou

> Match each of the numbered descriptions with the term or phrase it best reflects. Indicate your answer by writing the letter for the term or phrase in the blank provided. A. Audit B. GAAP C. Ethics D. Tax accounting E. SEC F. Public accountants H. IAS

> Match each transaction or event to one of the following activities of an organization: financing activities (F), investing activities (I), or operating activities (O). a. An owner contributes resources to the business. b. The organization borrows money f

> Part A. Identify the following questions as most likely to be asked by an internal (I) or an external (E) user of accounting information. 1. What are reasonable payroll benefits and wages? 2. Should we make a five-year loan to that business? 3. What are

> Indicate the section where each of the following would appear on the statement of cash flows. O. Cash flows from operating activity I. Cash flows from investing activity F. Cash flows from financing activity 1. Cash purchase of equipment 2. Cash withdra

> The following table shows the effects of five transactions (a through e) on the assets, liabilities, and equity of Mulan’s Boutique. Write short descriptions of the probable nature of each transaction. Assets = Liabilities + Equity

> Four types of adjustments are described in the chapter: (1) prepaid expenses, (2) unearned revenues, (3) accrued expenses, and (4) accrued revenues. Required 1. Form learning teams of four (or more) members. Each team member must select one of the f

> These 16 accounts are from the Adjusted Trial Balance columns of a company’s 10-column work sheet. In the blank space beside each account, write the letter of the appropriate financial statement column (A, B, C, or D) to which a normal account balance is

> Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization’s business activities. Classify the following activities as part of the identifying (I), r

> If an incorrect amount is journalized and posted to the accounts, how should the error be corrected?

> Why does the recordkeeper prepare a trial balance?

> If assets are valuable resources and asset accounts have debit balances, why do expense accounts also have debit balances?

> Should a transaction be recorded first in a journal or the ledger? Why?

> Are debits or credits typically listed first in general journal entries? Are the debits or the credits indented?

> What kinds of transactions can be recorded in a general journal?

> Refer to Google’s most recent balance sheet in Appendix A. Identify the eight accounts listed as current liabilities. Google’s Balance Sheet from Appendix A: Google Inc. CONSOLIDATED BALANCE SHEETS (In millions,

> Refer to Samsung’s most recent balance sheet in Appendix A. Identify and list its nine current assets. Samsung’s Balance Sheet from Appendix A: / Samsung Electronics Co., Ltd. and its subsidiaries CONSOLIDATED

> Jessica Boland works for Sea Biscuit Co. She and Farah Smith, her manager, are preparing adjusting entries for annual financial statements. Boland computes depreciation and records it as Smith agrees with her computation but says the credit entry should

> Refer to the most recent balance sheet for Apple in Appendix A. What five main noncurrent asset categories are used on its classified balance sheet? Apple’s Balance Sheet from Appendix A: Apple Inc. CONSOLIDATED BALANCE SHEETS (I

> How do reversing entries simplify recordkeeping?

> What are the characteristics of plant assets?

> How is unearned revenue classified on the balance sheet?

> If a company initially records prepaid expenses with debits to expense accounts, what type of account is debited in the adjusting entries for those prepaid expenses?

> Assume Samsung has unearned revenue. What is unearned revenue and where is it reported in financial statements?

> What type of assets requires adjusting entries to record depreciation?

> Refer to Samsung’s balance sheet in Appendix A. If it made an adjustment for unpaid wages at year-end, where would the accrued wages be reported on its balance sheet? Samsung’s Balance Sheet from Appendix A: /

> What is the difference between the cash basis and the accrual basis of accounting?

> What information is reported in an income statement?

> Key figures for the recent two years of both Apple and Google follow. Required 1. Compute profit margins for (a) Apple and (b) Google for the two years of data shown. 2. Which company is more successful on the basis of profit margin? Explain. Apple

> What information is reported in a balance sheet?

> Identify the four financial statements of a business.

> Provide the names of two (a) asset accounts, (b) liability accounts, and (c) equity accounts.

> Does the sender (maker) of a debit memorandum record a debit or a credit in the recipient’s account? What entry (debit or credit) does the recipient record?

> Why would a company’s manager be concerned about the quantity of its purchase returns if its suppliers allow unlimited returns?

> What is the difference between a sales discount and a purchase discount?

> How does a company that uses a perpetual inventory system determine the amount of inventory shrinkage?

> Explain how a business can earn a positive gross profit on its sales and still have a net loss.

> In comparing the accounts of a merchandising company with those of a service company, what additional accounts would the merchandising company likely use, assuming it employs a perpetual inventory system?

> Refer to the balance sheet and income statement for Apple in Appendix A. What does the company title its inventory account? Does the company present a detailed calculation of its cost of goods sold? Apple’s Balance Sheet & Income S

> Refer to Apple’s financial statements in Appendix A to answer the following. 1. Identify and write down the revenue recognition principle as explained in the chapter. 2. Review Apple’s footnotes (in Appendix A and/or from its 10-K on its website) to disc

> What items appear in financial statements of merchandising companies but not in the statements of service companies?

> What classes of assets and liabilities are shown on a typical classified balance sheet?

> What is a company’s operating cycle?

> What tasks are aided by a work sheet?

> What two purposes are accomplished by recording closing entries?

> The statement of cash flows reports on what major activities?

> What information is reported in a balance sheet?

> What is the purpose of the statement of owner’s equity?

> Give two examples of expenses a business might incur.

> What information is reported in an income statement?

> Angel Martin is a young entrepreneur who operates Martin Music Services, offering singing lessons and instruction on musical instruments. Martin wishes to expand but needs a $30,000 loan. The bank requests that Martin prepare a balance sheet and key fina

> Identify the four basic financial statements of a business.

> Define net income and explain its computation.