Pathways To Safer Opioid Use Simulation

Discussion Prompt #1

·  This discussion prompt refers to the Pathways to Safer Opioid Use simulation.

After participating in the Pathways to Safer Opioid Use simulation exercise, reflect on the following.

Have you empowered a patient to believe they could make needed lifestyle modifications irrespective of the barriers that exist in their environment? Please provide examples. If so, you were engaged in health promotion activities as part of your nursing role.

Were there any strategies used in this simulation exercise that you use to improve patient health literacy? Are there any that you use that were not mentioned here? In your experience, how effective are these strategies?

What are some of the biggest challenges you encounter when trying to improve health literacy? What solutions can you offer to manage these challenges?

Discussion Prompt #2

· Choose two emerging populations, such as Latino/Hispanic Americans, Asian Americans/Pacific Islanders, or Black/African Americans. How do health issues differ between the two populations?

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Chapter 02 Analyzing Business Transactions

Chapter 02

Analyzing Business Transactions

 

True / False Questions

1.The entire process of analyzing, recording, and reporting business transactions is based on the fundamental accounting equation.

True    False

 

2.When using the fundamental accounting equation, an accountant must make sure that total assets are always equal to total liabilities and owner’s equity.

True    False

 

3.Assets always equal debts of the business plus the financial interest of the owner.

True    False

 

4.When cash is paid to a creditor, the firm’s liabilities decrease.

True    False

 

5.Al Dunn Bakery bought a new oven for $1,380. Al paid $300 as a cash down payment and will pay the balance in 30 days. Total assets increased by $1,080.

True    False

 

6.If the owner takes cash out of the business for personal use, the withdrawal should be recorded as an expense of the business.

True    False

 

7.When cash is collected from accounts receivable, the total amount of assets increases.

True    False

 

8.A company has assets of $56,320 and liabilities of $29,500. The owner’s equity is $85,820.

True    False

 

9.The expenses for a period are reported on the balance sheet.

True    False

 

10.A double line drawn under the figures in a money column shows that the computation is complete.

True    False

 

11.A business transaction is a financial event that affects the resources of a business.

True    False

 

12.If there is an excess of expenses over revenues, the excess represents a profit.

True    False

 

13.A withdrawal of funds by the owner for personal use is considered a business expense.

True    False

 

14.The statement of owner’s equity is prepared before the balance sheet so that the ending capital balance is available.

True    False

 

15.If assets are $8,000 and liabilities are $2,000, owner’s equity is $10,000.

True    False

 

16.The amount of net income or net loss is needed to complete the statement of owner’s equity.

True    False

 

17.Withdrawals by the owner are reported on the income statement.

True    False

 

18.The income statement is also known as the profit and loss statement.

True    False

 

19.The net income or net loss for the period is shown on both the income statement and the balance sheet.

True    False

 

 

Fill in the Blank Questions

20.The property that a business owns is referred to as its ___________________.

________________________________________

 

21.The debts or obligations of a business are known as its ___________________.

________________________________________

 

22.The income statement shows revenue, ___________________, and net income or net loss for a period of time.

________________________________________

 

23.The financial interest of the owner in a business is called owner’s equity or ___________________.

________________________________________

 

24.The account used to record amounts that are owed for goods or services purchased on credit are known as ___________________.

________________________________________

 

25.When a business sells services for cash, assets increase and revenue ___________________.

________________________________________

 

26.The account used to record amounts that will be collected from charge account customers in the future are referred to as ___________________.

________________________________________

 

27.The ____________________ is the financial report that shows the assets, liabilities, and owner’s equity of a business on a specific date.

________________________________________

 

28.If assets are $17,000 and owner’s equity is $10,000, liabilities are ___________________.

________________________________________

 

29.When a business pays cash for salaries, assets decrease and expenses ___________________.

________________________________________

 

30.Funds taken from the business by the owner for personal use are called ___________________.

________________________________________

 

31.The statement of ____________________ reports the changes that have occurred in the owner’s financial interest during the reporting period.

________________________________________

 

32.When revenue is greater than expenses, the result is a net ___________________.

________________________________________

 

33.When revenue and expenses are equal, the firm is said to ___________________.

________________________________________

 

34.The three-line heading of a financial statement shows who, what, and ___________________.

________________________________________

 

 

Multiple Choice Questions

35.The balance sheet shows

A.the results of business operations.

 

B.all revenues and expenses.

 

C.the amount of net income or loss.

 

D.the financial position of a business at a given time.

 

36.Amounts that a business must pay in the future are known as

A.accounts receivable.

 

B.accounts payable.

 

C.capital.

 

D.expenses.

 

37.Examples of assets are:

A.cash and accounts receivable.

 

B.cash and revenue.

 

C.cash and rent expense.

 

D.investments by the owner and revenue.

 

38.Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will

A.increase Accounts Receivable.

 

B.increase G. Yale, Capital.

 

C.decrease Accounts Payable.

 

D.increase Cash.

 

39.If a business issues a check for $100 to purchase office supplies, analyze the effect on the accounting equation.

A.Financial Interest will increase

 

B.Property will decrease

 

C.Financial Interest will decrease

 

D.Total Property will remain the same

 

40.If a business issued a check for $1,000 to pay for two months rent in advance, analyze the effect on the firms’ assets, liabilities and owner’s equity.

A.Cash will increase

 

B.Accounts Payable will decrease

 

C.Prepaid Rent will increase

 

D.Owner’s Capital will increase

 

41.The owner’s investment or equity in a business is called

A.cash.

 

B.drawing.

 

C.capital.

 

D.accounts payable.

 

42.At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500.

The total assets for the SloMo Delivery Service are

A.$42,350.

 

B.$78,550.

 

C.$76,850.

 

D.$41,850.

 

43.At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500.

The total amount of Liabilities is

A.$36,200.

 

B.$9,500.

 

C.$21,500.

 

D.$40,650.

 

44.Total assets of Douglas Fuhr Furniture Co. are $36,000 and the total liabilities are $12,000. What is the amount of the owner’s equity?

A.$36,000

 

B.$24,000

 

C.$48,000

 

D.$6,000

 

45.If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner’s equity increase/decrease?

A.$91,000 increase

 

B.$59,000 decrease

 

C.$91,000 decrease

 

D.$75,000 increase

 

46.Which financial statement is reported as of a specific date?

A.Balance Sheet

 

B.Statement of Owner’s Equity

 

C.Income Statement

 

D.Statement of Changes in Financial Position

 

47.A net loss results

A.when expenses are greater than revenue.

 

B.when assets are greater than liabilities.

 

C.when revenue is greater than expenses.

 

D.when expenses are greater than assets.

 

48.The income statement shows

A.the financial position of a business on a specific date.

 

B.revenue and owner’s equity.

 

C.the results of operations for a period of time.

 

D.the total value of the business.

 

49.If the income statement covered a six-month period ending on November 30, 2013, the third line of the income statement heading would read

A.Month Ended November 30, 2013.

 

B.November 30, 2013.

 

C.Six-month Period Ended November 30, 2013.

 

D.Month of November, 2013.

 

50.When the owner invests cash in a business,

A.assets and revenue increase.

 

B.assets increase and owner’s equity decreases.

 

C.liabilities decrease and owner’s equity increases.

 

D.assets and owner’s equity increase.

 

51.When equipment is purchased on credit,

A.assets and liabilities increase.

 

B.assets increase and liabilities decrease.

 

C.assets and owner’s equity increase.

 

D.assets and expenses increase.

 

52.When equipment is purchased for cash,

A.assets decrease and expenses increase.

 

B.one asset increases and another asset decreases.

 

C.assets and owner’s equity increase.

 

D.assets increase and liabilities decrease.

 

53.If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation

A.assets decrease and liabilities increase.

 

B.liabilities decrease and owner’s equity decreases.

 

C.assets remain the same and owner’s equity remains the same.

 

D.owner’s equity increases and revenue increases.

 

54.When the owner withdraws cash for personal use,

A.assets decrease and expenses increase.

 

B.assets decrease and owner’s equity increases.

 

C.assets decrease and owner’s equity decreases.

 

D.owner’s equity decreases and revenue decreases.

 

55.When the owner writes a company check to pay the firm’s electric bill,

A.assets and owner’s equity increase.

 

B.assets decrease and expenses increase.

 

C.assets and liabilities decrease.

 

D.expenses increase and owner’s equity increases.

 

56.Identify the account below that is classified as an asset account and would appear on the left side of the accounting equation.

A.Accounts Receivable.

 

B.Owner’s Capital.

 

C.Accounts Payable.

 

D.Revenue.

 

57.Assets and liabilities are reported on

A.the balance sheet.

 

B.the income statement.

 

C.the statement of owner’s equity.

 

D.both the balance sheet and the income statement.

 

58.The financial statement that is prepared first is

A.up to the accountant.

 

B.the income statement.

 

C.the balance sheet.

 

D.the statement of owner’s equity.

 

59.The rent paid for future months is a(n)

A.asset.

 

B.liability.

 

C.expense.

 

D.revenue.

 

60.The statement of financial position is another term for which financial statement?

A.Income Statement

 

B.Statement of Owner’s Equity

 

C.Balance Sheet

 

D.Trial Balance

 

61.Which financial statement is a representation of the accounting equation?

A.Income Statement

 

B.Statement of Owner’s Equity

 

C.Balance Sheet

 

D.Profit and Loss Statement

 

62.The Statement of Owner’s Equity is calculated as follows:

A.beginning capital + net income – withdrawals + additional investments = ending capital

 

B.beginning capital + net loss + withdrawals + additional investments = ending capital

 

C.beginning capital + net loss – withdrawals + additional investments = ending capital

 

D.beginning capital + net income + withdrawals + additional investments = ending capital

 

63.An Income Statement is all of the following except:

A.a formal report of business operations.

 

B.a profit and loss statement.

 

C.a statement of revenues less withdrawals and expenses.

 

D.a statement of income and expenses.

 

64.At the end of the first month of operations for Jackson’s Catering Service, the business had the following accounts: Cash, $19,000; Prepaid Rent, $500; Equipment, $5,000 and Accounts Payable $2,000. By the end of the month, Jackson’s had earned $20,000 of Revenues, $1,000 of Utilities Expenses and $1,500 of Salaries Expenses. Calculate the net income to be reported by the company for this first month.

A.$20,000

 

B.$19,000

 

C.$17,500

 

D.$12,000

 

65.At the end of its first year of operations, Shapiro’s Consulting Services reported net income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000 and Accounts Receivable $10,000. The owner’s total investment for this first year was $5,000. Calculate the ending balance to be reported on the Statement of Owner’s Equity in the Owner’s Capital account.

A.$30,000

 

B.$25,000

 

C.$20,000

 

D.$5,000

 

66.Identify the type of accounts that would appear on a firm’s income statement

A.assets and liabilities.

 

B.revenues and expenses.

 

C.assets and revenues.

 

D.liabilities and expenses.

 

67.Owner’s equity is:

A.the amount taken out of a business by the owner for personal use.

 

B.the financial interest of the owner of a business.

 

C.the amount the owner owes the business.

 

D.the revenues less the expenses.

 

68.Given the options below, identify the correct accounting equation formula.

A.Assets = Liabilities + Owner’s Equity

 

B.Liabilities = Assets + Owner’s Equity

 

C.Assets + Liabilities = Owner’s Equity

 

D.Assets + Owner’s Equity = Liabilities

 

69.The balance sheet shows each of the following except the:

A.net income of the business.

 

B.amount and types of property the business owns.

 

C.owner’s interest.

 

D.amount owed creditors.

 

70.The Balance Sheet heading includes each of the following except:

A.firm’s name.

 

B.firm’s address.

 

C.title of the report.

 

D.date of the report.

 

71.Choose the option below that reflects the correct order in which to prepare the three financial statements

A.Balance Sheet; Income Statement; Statement of Owner’s Equity.

 

B.Income Statement; Statement of Owner’s Equity; Balance Sheet.

 

C.Income Statement; Balance Sheet; Statement of Owner’s Equity.

 

D.Statement of Owner’s Equity; Balance Sheet; Income Statement.

 

72.An expense by definition is not:

A.an amount a business must pay in the future.

 

B.an outflow of cash.

 

C.the use of other assets.

 

D.the incurring of a liability.

 

 

Short Answer Questions

73.On December 1, 2016, Geneva Jordan opened her new business with the following assets and liabilities. Complete the accounting equation for the firm.

Assets $________ = Liabilities $________ + Owner’s Equity $________

 

 

 

 

74.During October, a firm had the following transactions involving revenue and expenses. Did the firm earn a net income or incur a net loss for the period? What was the amount?

Paid $1,200 for rent
Provided services for $2,750 in cash
Paid $250 for telephone service
Provided services for $1,900 on credit
Paid salaries of $1,675 to employees
Paid $350 for office cleaning service

 

 

 

 

75.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Performed services on credit

 

 

 

 

76.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Paid cash for utilities

 

 

 

 

77.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Sent a check to a creditor

 

 

 

 

78.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Issued checks to pay salaries

 

 

 

 

79.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Purchased a computer for cash

 

 

 

 

80.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Received cash from credit customers

 

 

 

 

81.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Performed services for cash

 

 

 

 

82.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

The owner made an additional investment of cash

 

 

 

 

83.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Purchased furniture on credit

 

 

 

 

84.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Had a computer repaired; payment is due in 30 days

 

 

 

 

85.Guy McKinley started the McKinley Charter Service at the beginning of August 2016. On August 31, 2016, the accounting records of the business showed the following information. Prepare an income statement and a statement of owner’s equity for the month and a balance sheet as of August 31, 2016.

 

 

 

 

86.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Transactions

1. Shawn Dahl invested $45,000 in cash to open the business
2. Paid $12,700 in cash for the purchase of kayak and canoe equipment
3. Paid $1,050 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $3,800 on credit
5. Received $3,900 in cash for kayak rentals
6. Rented canoes and kayaks for $1,200 on account
7. Purchased office equipment for $125 in cash
8. Received $800 in cash from credit clients
9. Shawn Dahl withdrew $1,500 in cash for personal expenses

Based on the information shown in transaction #4 above, indicate the accounts affected and use plus and minus to show the changes caused by the transaction.

 

 

 

 

87.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Transactions

1. Shawn Dahl invested $45,000 in cash to open the business
2. Paid $12,700 in cash for the purchase of kayak and canoe equipment
3. Paid $1,050 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $3,800 on credit
5. Received $3,900 in cash for kayak rentals
6. Rented canoes and kayaks for $1,200 on account
7. Purchased office equipment for $125 in cash
8. Received $800 in cash from credit clients
9. Shawn Dahl withdrew $1,500 in cash for personal expenses

Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

 

 

 

 

88.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Transactions

1. Shawn Dahl invested $45,000 in cash to open the business
2. Paid $12,700 in cash for the purchase of kayak and canoe equipment
3. Paid $1,050 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $3,800 on credit
5. Received $3,900 in cash for kayak rentals
6. Rented canoes and kayaks for $1,200 on account
7. Purchased office equipment for $125 in cash
8. Received $800 in cash from credit clients
9. Shawn Dahl withdrew $1,500 in cash for personal expenses

Based on the information above, what is the fundamental accounting equation at the end of September for Whitewater Rentals?

 

 

 

 

89.On June 1, Donna Banhil established Solo Services, a voice consulting service. Enter the following transactions for June in the table below using + and – to indicate increases or decreases:

Transactions

1. Donna Banhil invested $15,000 in cash to open the business
2. Paid $1,500 for June’s rent
3. Paid $4,500 for rent in advance, for the next three months (July-September)
4. Purchased office supplies for $800 on credit
5. Performed voice consulting services and immediately received $1,200 from clients.
6. Gave voice lessons to charge account clients and earned $9,000
7. Paid $100 cash for the supplies purchased earlier in the month
8. Received $1,000 in cash from credit clients billed earlier in the month

 

 

 

 

90.The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

What was the net income or net loss for Sawyer Architecture Services for the month of June?

 

 

 

 

91.The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

Prepare the statement of owner’s equity for Sawyer Architecture Services for the month ended June 30, 2016.

 

 

 

 

92.The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

Prepare the balance sheet for Sawyer Architecture Services as of June 30, 2016.

 

 

 

 

93.Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on April 1, 2016, he invested $50,000 in cash and $19,000 in equipment, and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,000, paying the full amount in advance.

Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 2016, before he conducts any services.

 

 

 

 

94.Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on April 1, 2016, he invested $50,000 in cash and $19,000 in equipment, and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,000, paying the full amount in advance.

Cullen would like an explanation of the accounting for his business actions as of April 1, 2016. Explain the terms and interactions between the categories on a Balance Sheet.

 

 

 

 

Chapter 02 Analyzing Business Transactions Answer Key

 

True / False Questions

1.The entire process of analyzing, recording, and reporting business transactions is based on the fundamental accounting equation.

TRUE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

2.When using the fundamental accounting equation, an accountant must make sure that total assets are always equal to total liabilities and owner’s equity.

TRUE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

3.Assets always equal debts of the business plus the financial interest of the owner.

TRUE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounts and Their Relationships
 

 

4.When cash is paid to a creditor, the firm’s liabilities decrease.

TRUE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounts and Their Relationships
 

 

5.Al Dunn Bakery bought a new oven for $1,380. Al paid $300 as a cash down payment and will pay the balance in 30 days. Total assets increased by $1,080.

TRUE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Decision Making
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

6.If the owner takes cash out of the business for personal use, the withdrawal should be recorded as an expense of the business.

FALSE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Decision Making
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

7.When cash is collected from accounts receivable, the total amount of assets increases.

FALSE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

8.A company has assets of $56,320 and liabilities of $29,500. The owner’s equity is $85,820.

FALSE

Using the fundamental accounting equation, owner’s equity would be $26,820
($56, 320 = $29,500 + $26,820)

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

9.The expenses for a period are reported on the balance sheet.

FALSE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

10.A double line drawn under the figures in a money column shows that the computation is complete.

TRUE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Learning Objective: 02-06 Define the accounting terms new to this chapter.
Topic: Accounting Equation and Financial Statements
 

 

11.A business transaction is a financial event that affects the resources of a business.

TRUE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Business Transactions and Events
 

 

12.If there is an excess of expenses over revenues, the excess represents a profit.

FALSE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

13.A withdrawal of funds by the owner for personal use is considered a business expense.

FALSE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

14.The statement of owner’s equity is prepared before the balance sheet so that the ending capital balance is available.

TRUE

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

15.If assets are $8,000 and liabilities are $2,000, owner’s equity is $10,000.

FALSE

Using the fundamental accounting equation, owner’s equity would be $6,000 ($8,000 = $2,000 + $6,000)

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

16.The amount of net income or net loss is needed to complete the statement of owner’s equity.

TRUE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

17.Withdrawals by the owner are reported on the income statement.

FALSE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

18.The income statement is also known as the profit and loss statement.

TRUE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

19.The net income or net loss for the period is shown on both the income statement and the balance sheet.

FALSE

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

Fill in the Blank Questions

20.The property that a business owns is referred to as its ___________________.

assets

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounts and Their Relationships
 

 

21.The debts or obligations of a business are known as its ___________________.

liabilities

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounts and Their Relationships
 

 

22.The income statement shows revenue, ___________________, and net income or net loss for a period of time.

expenses

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

23.The financial interest of the owner in a business is called owner’s equity or ___________________.

capital

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounts and Their Relationships
 

 

24.The account used to record amounts that are owed for goods or services purchased on credit are known as ___________________.

accounts payable

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

25.When a business sells services for cash, assets increase and revenue ___________________.

increases

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

26.The account used to record amounts that will be collected from charge account customers in the future are referred to as ___________________.

accounts receivable

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

27.The ____________________ is the financial report that shows the assets, liabilities, and owner’s equity of a business on a specific date.

balance sheet

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

28.If assets are $17,000 and owner’s equity is $10,000, liabilities are ___________________.

$7,000

Assets = Liabilities + Owner’s Equity; therefore, $17,000 = $7,000 + $10,000.

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

29.When a business pays cash for salaries, assets decrease and expenses ___________________.

increase

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

30.Funds taken from the business by the owner for personal use are called ___________________.

withdrawals

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

31.The statement of ____________________ reports the changes that have occurred in the owner’s financial interest during the reporting period.

owner’s equity

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

32.When revenue is greater than expenses, the result is a net ___________________.

income

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

33.When revenue and expenses are equal, the firm is said to ___________________.

break even

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

34.The three-line heading of a financial statement shows who, what, and ___________________.

when

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

Multiple Choice Questions

35.The balance sheet shows

A.the results of business operations.

 

B.all revenues and expenses.

 

C.the amount of net income or loss.

 

D.the financial position of a business at a given time.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

36.Amounts that a business must pay in the future are known as

A.accounts receivable.

 

B.accounts payable.

 

C.capital.

 

D.expenses.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

37.Examples of assets are:

A.cash and accounts receivable.

 

B.cash and revenue.

 

C.cash and rent expense.

 

D.investments by the owner and revenue.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounts and Their Financial Statements
 

 

38.Ginger Yale Ice Company receives money from a customer on account. Recording this transaction will

A.increase Accounts Receivable.

 

B.increase G. Yale, Capital.

 

C.decrease Accounts Payable.

 

D.increase Cash.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

39.If a business issues a check for $100 to purchase office supplies, analyze the effect on the accounting equation.

A.Financial Interest will increase

 

B.Property will decrease

 

C.Financial Interest will decrease

 

D.Total Property will remain the same

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Property and Financial Interest
 

 

40.If a business issued a check for $1,000 to pay for two months rent in advance, analyze the effect on the firms’ assets, liabilities and owner’s equity.

A.Cash will increase

 

B.Accounts Payable will decrease

 

C.Prepaid Rent will increase

 

D.Owner’s Capital will increase

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

41.The owner’s investment or equity in a business is called

A.cash.

 

B.drawing.

 

C.capital.

 

D.accounts payable.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

42.At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500.

The total assets for the SloMo Delivery Service are

A.$42,350.

 

B.$78,550.

 

C.$76,850.

 

D.$41,850.

Assets = Accounts Receivable, $1,200 + Prepaid Insurance, $500 + Equipment $36,200 + Cash, $40,650 = $78,550.

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

43.At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,200; Prepaid Insurance, $500; Equipment, $36,200 and Cash, $40,650. On the same date, SloMo owed the following creditors: Simpson Supply Company, $12,000; Allen Office Equipment, $9,500.

The total amount of Liabilities is

A.$36,200.

 

B.$9,500.

 

C.$21,500.

 

D.$40,650.

Liabilities = Simpson Supply Company, $12,000 + Allen Office Equipment, $9,500 = $21,500.

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

44.Total assets of Douglas Fuhr Furniture Co. are $36,000 and the total liabilities are $12,000. What is the amount of the owner’s equity?

A.$36,000

 

B.$24,000

 

C.$48,000

 

D.$6,000

Assets = Liabilities + Owners’ Equity: $36,000 = $12,000 + $24,000

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

45.If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner’s equity increase/decrease?

A.$91,000 increase

 

B.$59,000 decrease

 

C.$91,000 decrease

 

D.$75,000 increase

$75,000 = ($16,000) + $91,000

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA BB: Industry
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Evaluate
Difficulty: 3 Hard
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

46.Which financial statement is reported as of a specific date?

A.Balance Sheet

 

B.Statement of Owner’s Equity

 

C.Income Statement

 

D.Statement of Changes in Financial Position

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

47.A net loss results

A.when expenses are greater than revenue.

 

B.when assets are greater than liabilities.

 

C.when revenue is greater than expenses.

 

D.when expenses are greater than assets.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: The Accounting Equation and Financial Statements
 

 

48.The income statement shows

A.the financial position of a business on a specific date.

 

B.revenue and owner’s equity.

 

C.the results of operations for a period of time.

 

D.the total value of the business.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

49.If the income statement covered a six-month period ending on November 30, 2013, the third line of the income statement heading would read

A.Month Ended November 30, 2013.

 

B.November 30, 2013.

 

C.Six-month Period Ended November 30, 2013.

 

D.Month of November, 2013.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

50.When the owner invests cash in a business,

A.assets and revenue increase.

 

B.assets increase and owner’s equity decreases.

 

C.liabilities decrease and owner’s equity increases.

 

D.assets and owner’s equity increase.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

51.When equipment is purchased on credit,

A.assets and liabilities increase.

 

B.assets increase and liabilities decrease.

 

C.assets and owner’s equity increase.

 

D.assets and expenses increase.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

52.When equipment is purchased for cash,

A.assets decrease and expenses increase.

 

B.one asset increases and another asset decreases.

 

C.assets and owner’s equity increase.

 

D.assets increase and liabilities decrease.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

53.If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation

A.assets decrease and liabilities increase.

 

B.liabilities decrease and owner’s equity decreases.

 

C.assets remain the same and owner’s equity remains the same.

 

D.owner’s equity increases and revenue increases.

Cash is increased by $5,000 but Accounts Receivable is reduced by $5,000 so there is no change in total assets.

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
Accessibility: Keyboard Navigation
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

54.When the owner withdraws cash for personal use,

A.assets decrease and expenses increase.

 

B.assets decrease and owner’s equity increases.

 

C.assets decrease and owner’s equity decreases.

 

D.owner’s equity decreases and revenue decreases.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

55.When the owner writes a company check to pay the firm’s electric bill,

A.assets and owner’s equity increase.

 

B.assets decrease and expenses increase.

 

C.assets and liabilities decrease.

 

D.expenses increase and owner’s equity increases.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

56.Identify the account below that is classified as an asset account and would appear on the left side of the accounting equation.

A.Accounts Receivable.

 

B.Owner’s Capital.

 

C.Accounts Payable.

 

D.Revenue.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

57.Assets and liabilities are reported on

A.the balance sheet.

 

B.the income statement.

 

C.the statement of owner’s equity.

 

D.both the balance sheet and the income statement.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounts and Their Relationships
 

 

58.The financial statement that is prepared first is

A.up to the accountant.

 

B.the income statement.

 

C.the balance sheet.

 

D.the statement of owner’s equity.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

59.The rent paid for future months is a(n)

A.asset.

 

B.liability.

 

C.expense.

 

D.revenue.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounts and Their Relationships
 

 

60.The statement of financial position is another term for which financial statement?

A.Income Statement

 

B.Statement of Owner’s Equity

 

C.Balance Sheet

 

D.Trial Balance

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

61.Which financial statement is a representation of the accounting equation?

A.Income Statement

 

B.Statement of Owner’s Equity

 

C.Balance Sheet

 

D.Profit and Loss Statement

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

62.The Statement of Owner’s Equity is calculated as follows:

A.beginning capital + net income – withdrawals + additional investments = ending capital

 

B.beginning capital + net loss + withdrawals + additional investments = ending capital

 

C.beginning capital + net loss – withdrawals + additional investments = ending capital

 

D.beginning capital + net income + withdrawals + additional investments = ending capital

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

63.An Income Statement is all of the following except:

A.a formal report of business operations.

 

B.a profit and loss statement.

 

C.a statement of revenues less withdrawals and expenses.

 

D.a statement of income and expenses.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

64.At the end of the first month of operations for Jackson’s Catering Service, the business had the following accounts: Cash, $19,000; Prepaid Rent, $500; Equipment, $5,000 and Accounts Payable $2,000. By the end of the month, Jackson’s had earned $20,000 of Revenues, $1,000 of Utilities Expenses and $1,500 of Salaries Expenses. Calculate the net income to be reported by the company for this first month.

A.$20,000

 

B.$19,000

 

C.$17,500

 

D.$12,000

Revenues $20,000 – Utilities Expense $1,000 – Salaries Expense $1,500 = Net Income $17,500

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

65.At the end of its first year of operations, Shapiro’s Consulting Services reported net income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000 and Accounts Receivable $10,000. The owner’s total investment for this first year was $5,000. Calculate the ending balance to be reported on the Statement of Owner’s Equity in the Owner’s Capital account.

A.$30,000

 

B.$25,000

 

C.$20,000

 

D.$5,000

Investments $5,000 + Net Income $25,000 = $30,000

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

66.Identify the type of accounts that would appear on a firm’s income statement

A.assets and liabilities.

 

B.revenues and expenses.

 

C.assets and revenues.

 

D.liabilities and expenses.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

67.Owner’s equity is:

A.the amount taken out of a business by the owner for personal use.

 

B.the financial interest of the owner of a business.

 

C.the amount the owner owes the business.

 

D.the revenues less the expenses.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Measurement
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 2 Medium
Learning Objective: 02-06 Define the accounting terms new to this chapter.
Topic: Accounting Equation and Financial Statements
 

 

68.Given the options below, identify the correct accounting equation formula.

A.Assets = Liabilities + Owner’s Equity

 

B.Liabilities = Assets + Owner’s Equity

 

C.Assets + Liabilities = Owner’s Equity

 

D.Assets + Owner’s Equity = Liabilities

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

69.The balance sheet shows each of the following except the:

A.net income of the business.

 

B.amount and types of property the business owns.

 

C.owner’s interest.

 

D.amount owed creditors.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

70.The Balance Sheet heading includes each of the following except:

A.firm’s name.

 

B.firm’s address.

 

C.title of the report.

 

D.date of the report.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Decision Making
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

71.Choose the option below that reflects the correct order in which to prepare the three financial statements

A.Balance Sheet; Income Statement; Statement of Owner’s Equity.

 

B.Income Statement; Statement of Owner’s Equity; Balance Sheet.

 

C.Income Statement; Balance Sheet; Statement of Owner’s Equity.

 

D.Statement of Owner’s Equity; Balance Sheet; Income Statement.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

72.An expense by definition is not:

A.an amount a business must pay in the future.

 

B.an outflow of cash.

 

C.the use of other assets.

 

D.the incurring of a liability.

 

AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 02-06 Define the accounting terms new to this chapter.
Topic: Accounting Equation and Financial Statements
 

 

Short Answer Questions

73.On December 1, 2016, Geneva Jordan opened her new business with the following assets and liabilities. Complete the accounting equation for the firm.

Assets $________ = Liabilities $________ + Owner’s Equity $________

Assets $37,400 = Liabilities $16,600 + Owner’s Equity $20,800

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

74.During October, a firm had the following transactions involving revenue and expenses. Did the firm earn a net income or incur a net loss for the period? What was the amount?

Paid $1,200 for rent
Provided services for $2,750 in cash
Paid $250 for telephone service
Provided services for $1,900 on credit
Paid salaries of $1,675 to employees
Paid $350 for office cleaning service

Net income: $1,175

Feedback: $2,750 + 1,900 – $1,200 – $250 – $1,675 – $350 = $1,175 Net Income

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

75.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Performed services on credit

plus Accounts Receivable; plus Revenue

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

76.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Paid cash for utilities

plus Expenses; minus Cash

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

77.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Sent a check to a creditor

minus Accounts Payable; minus Cash

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounting Equation and Financial Statements
 

 

78.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Issued checks to pay salaries

plus Expenses; minus Cash

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

79.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Purchased a computer for cash

plus Equipment; minus Cash

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounting Equation and Financial Statements
 

 

80.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Received cash from credit customers

plus Cash; minus Accounts Receivable

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

81.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Performed services for cash

plus Cash; plus Revenue

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

82.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

The owner made an additional investment of cash

plus Cash; plus K. Mitchell, Capital

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounting Equation and Financial Statements
 

 

83.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Purchased furniture on credit

plus Furniture; plus Accounts Payable

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounting Equation and Financial Statements
 

 

84.The transactions listed below took place at the Mitchell Advertising Agency. These transactions affected the following accounts. Indicate the accounts affected and use plus and minus to show the changes caused by each transaction.

Had a computer repaired; payment is due in 30 days

plus Expenses; plus Accounts Payable

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Topic: Accounting Equation and Financial Statements
 

 

85.Guy McKinley started the McKinley Charter Service at the beginning of August 2016. On August 31, 2016, the accounting records of the business showed the following information. Prepare an income statement and a statement of owner’s equity for the month and a balance sheet as of August 31, 2016.

 

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Create
Difficulty: 3 Hard
Learning Objective: 02-04 Prepare an income statement.
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

86.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Transactions

1. Shawn Dahl invested $45,000 in cash to open the business
2. Paid $12,700 in cash for the purchase of kayak and canoe equipment
3. Paid $1,050 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $3,800 on credit
5. Received $3,900 in cash for kayak rentals
6. Rented canoes and kayaks for $1,200 on account
7. Purchased office equipment for $125 in cash
8. Received $800 in cash from credit clients
9. Shawn Dahl withdrew $1,500 in cash for personal expenses

Based on the information shown in transaction #4 above, indicate the accounts affected and use plus and minus to show the changes caused by the transaction.

plus Canoe and Kayak Equipment; plus Accounts Payable

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Reporting
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

87.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Transactions

1. Shawn Dahl invested $45,000 in cash to open the business
2. Paid $12,700 in cash for the purchase of kayak and canoe equipment
3. Paid $1,050 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $3,800 on credit
5. Received $3,900 in cash for kayak rentals
6. Rented canoes and kayaks for $1,200 on account
7. Purchased office equipment for $125 in cash
8. Received $800 in cash from credit clients
9. Shawn Dahl withdrew $1,500 in cash for personal expenses

Based on the information shown above, what is the balance of Accounts Receivable for Whitewater Rentals at the end of September?

The balance of Accounts Receivable at September 30 is $400.

Feedback: Beginning Accounts Receivable, $0 + sales on account, $1,200 – collections on account, $800 = Ending Accounts Receivable, $400.

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

88.On September 1, Shawn Dahl established Whitewater Rentals, a canoe and kayak rental business. The following transactions occurred in the month of September and affected the following accounts:

Transactions

1. Shawn Dahl invested $45,000 in cash to open the business
2. Paid $12,700 in cash for the purchase of kayak and canoe equipment
3. Paid $1,050 in cash for rent expense
4. Purchased additional kayak and canoe equipment for $3,800 on credit
5. Received $3,900 in cash for kayak rentals
6. Rented canoes and kayaks for $1,200 on account
7. Purchased office equipment for $125 in cash
8. Received $800 in cash from credit clients
9. Shawn Dahl withdrew $1,500 in cash for personal expenses

Based on the information above, what is the fundamental accounting equation at the end of September for Whitewater Rentals?

Assets $51,350 = Liabilities $3, 800 + Owner’s Equity $47,550

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Analyze
Difficulty: 3 Hard
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Accounting Equation and Financial Statements
 

 

89.On June 1, Donna Banhil established Solo Services, a voice consulting service. Enter the following transactions for June in the table below using + and – to indicate increases or decreases:

Transactions

1. Donna Banhil invested $15,000 in cash to open the business
2. Paid $1,500 for June’s rent
3. Paid $4,500 for rent in advance, for the next three months (July-September)
4. Purchased office supplies for $800 on credit
5. Performed voice consulting services and immediately received $1,200 from clients.
6. Gave voice lessons to charge account clients and earned $9,000
7. Paid $100 cash for the supplies purchased earlier in the month
8. Received $1,000 in cash from credit clients billed earlier in the month

 

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-01 Record in equation form the financial effects of a business transaction.
Learning Objective: 02-03 Analyze the effects of business transactions on a firm’s assets; liabilities; and owner’s equity and record these effects in accounting equation form.
Topic: Business Transactions and Events
 

 

90.The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

What was the net income or net loss for Sawyer Architecture Services for the month of June?

Net income was $1,700.

Feedback: Revenue, $5,200 – Expenses, $3,500 = Net Income, $1,700.

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Apply
Difficulty: 1 Easy
Learning Objective: 02-04 Prepare an income statement.
Topic: Accounting Equation and Financial Statements
 

 

91.The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

Prepare the statement of owner’s equity for Sawyer Architecture Services for the month ended June 30, 2016.

 

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Create
Difficulty: 2 Medium
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

92.The figure below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

Prepare the balance sheet for Sawyer Architecture Services as of June 30, 2016.

 

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-05 Prepare a statement of owner’s equity and a balance sheet.
Topic: Accounting Equation and Financial Statements
 

 

93.Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on April 1, 2016, he invested $50,000 in cash and $19,000 in equipment, and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,000, paying the full amount in advance.

Prepare a Balance Sheet for Cullen Consulting Services as of April 1, 2016, before he conducts any services.

 

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Measurement
AICPA FN: Reporting
Blooms: Create
Difficulty: 2 Medium
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

94.Cullen Beatty plans to start a consulting business—Cullen Consulting Services. In preparation to do this, on April 1, 2016, he invested $50,000 in cash and $19,000 in equipment, and opened an account at Office Plus by purchasing $1,500 in office supplies which is due by the end of the month. He then signed a one-year lease agreement on an office building for $6,000, paying the full amount in advance.

Cullen would like an explanation of the accounting for his business actions as of April 1, 2016. Explain the terms and interactions between the categories on a Balance Sheet.

Answers will vary. Items that should be included are:

The Balance Sheet is a format report of a business’s financial condition
–on a certain date
–reports assets, liabilities, and owner’s equity of a business
–reports property owned by a business, obligations (debts) of a business
–reports the financial interest (proprietorship, net worth) of the owner
–total assets equals the total liabilities plus total owner’s equity

 

AACSB: Analytic
AICPA BB: Critical Thinking
AICPA FN: Decision Making
AICPA FN: Reporting
Blooms: Create
Difficulty: 2 Medium
Learning Objective: 02-02 Define; identify; and understand the relationship between asset; liability; and owner’s equity accounts.
Topic: Accounting Equation and Financial Statements
 

 

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ACCT At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,120; Prepaid Insurance, $420; Equipment, $35,400 and Cash, $40,250. On the same date, SloMo owed the following creditors: Simpson Supply Company, $11,200; Allen Office Equipment, $9,100

At the end of the first month of operations for SloMo Delivery Service, the business had the following accounts: Accounts Receivable, $1,120; Prepaid Insurance, $420; Equipment, $35,400 and Cash, $40,250. On the same date, SloMo owed the following creditors: Simpson Supply Company, $11,200; Allen Office Equipment, $9,100

 

If during the year total assets increase by $82,000 and total liabilities decrease by $19,500, by how much did owner’s equity increase/decrease?

 

 

The table below shows the transactions for Sawyer Architecture Services during June. Greg Sawyer opened this business on June 1 with a capital investment of $72,000 (Transaction 1).

 

Prepare the balance sheet for Sawyer Architecture Services as of June 30, 2019.

SAWYER ARCHITECTURE SERVICES
Balance Sheet
June 30, 2019
AssetsLiabilities
Owner’s Equity
Total AssetsTotal Liabilities and Owner’s Equity

 

On December 1, 2019, Geneva Jordan opened her new business with the following assets and liabilities.

Accounts Payable$1,000Prepaid Rent$5,800
Cash3,750Loans Payable15,300
Equipment26,000Supplies1,150

 

Complete the accounting equation for the firm.

During October, a firm had the following transactions involving revenue and expenses.

Paid $1,100 for rent for October
Provided services for $2,550 in cash
Paid $210 for the October telephone service
Provided services for $1,700 on credit
Paid salaries of $1,575 to employees
Paid $310 for the monthly office cleaning service

Calculate the net income or net loss for the period?

 

Guy McKinley started the McKinley Charter Service at the beginning of August 2019. On August 31, 2019, the accounting records of the business showed the following information.

Equipment$21,000Rent Expense$5,500
Accounts Receivable3,200Cash6,600
Fees Income31,500Salaries Expense11,400
Boats106,000Utilities Expense2,200
Gasoline Expense8,200Supplies4,200
Loans Payable80,500Initial Investment54,000
Owners’ Withdrawal3,650Accounts Payable5,950

Prepare an income statement and a statement of owner’s equity for the month and a balance sheet as of August 31, 2019.

 

 

 

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One time, while grocery shopping, you were exhausted and gave into your 4 year old’s whining about getting a new Hot Wheel. Now, every time you are at a store, the child engages in the same whining behavior, often escalating into tantrums.

For this discussion, you will select two (2) of the parenting scenarios presented below. In your initial discussion, you will describe how to correct the inappropriate/negative behavior using research and references from what you have learned in class. You’ll need to keep a few additional things in mind:

  • child’s developmental stage (can they be reasoned with?)
  • application of operant conditioning (reinforcement and punishment)
  • is the punishment logical and can you as the parent follow through?

Be sure to locate peer-reviewed references (textbook is okay) to validate and support your ideas. When coming up with methods to help curb the negative behaviors, the only thing you are not allowed to use is physical discipline. While many of you may argue that you were raised with the belt and turned out fine, the purpose of this activity is to demonstrate that shaping behaviors does not require violence and can be done when approached from a developmental and creative standpoint.

Parenting Scenarios

  1. One time, while grocery shopping, you were exhausted and gave into your 4 year old’s whining about getting a new Hot Wheel. Now, every time you are at a store, the child engages in the same whining behavior, often escalating into tantrums.
  2. You are getting frequent referrals for your 5-year-old son, stating that he is aggressive with other children in the day care class, often taking toys, hitting, taunting, and biting.
  3. Every morning, it is a battle to keep clothing on your 3-year-old.
  4. Your preschooler (3-4 years old) has been reported kissing multiple children on the playground during recess.
  5. Every time you give your 3-year-old child an instruction, they reply with, “No.”
  6. Your 5-year-old is potty trained but gets so wrapped up with playing that he goes in his pants or other inappropriate places (e.g. bedroom closet).
  7. Anytime you are in a public place (e.g. park, mall), your 4-year-old takes off running.
  8. You come home from work to find a new Picasso on your living room wall, completed with love by your 3-year-old artist.

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ASSIGNMENT 08 PS370 Research Methods in Psychology

ASSIGNMENT 08

PS370 Research Methods in Psychology

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cited in APA format. Your response should be four (4) double‐spaced pages; refer to the “Format Requirementsʺ page for specific format requirements.

In Lesson 4, you submitted a review of the literature (article summaries), a proposed research question, and a hypothesis related to the topic of self-directed learning.

Read over all the comments and suggestions you received for your past submission. Use these comments to improve your final submission. Review the grading rubric to make sure you have included all the necessary components.

For this assignment, you will submit the remainder of the research paper, including the components below:

1. Proposed Methods (1 double-spaced page) 

a. Proposed design of the study

b. Proposed participants (sample) you would use

c. Proposed materials and apparatus

d. Description of procedure

2. Proposed Results (1 double-spaced page)

a. What statistical analysis you will use to analyze your results

b. Any supplemental analysis you might run if your hypothesis was not supported

c. A figure of your predicted trends (remember to keep it in APA style)

3. Proposed Discussion (2 double-spaced pages)

a. A restatement of hypotheses and whether they were supported (based on your proposed results)

b. Connecting your results to past research

c. Alternative explanation for results

d. Limitations of research

e. Generalizability of findings

4. References

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PS370 Assignment 4

PS370 Research Methods in Psychology

Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar. Sources must be cited in APA format. Your response should be four (4) double‐spaced pages; refer to the “Format Requirementsʺ page for specific format requirements.

For this assignment, you will propose an original research question based on previous research that has been conducted on the topic of self-directed learning by following the steps below.

1. Read and briefly summarize the following two (2) articles. Each summary should be 1 double-spaced page, including the following:

a. Purpose

b. Methods

c. Results

d. A short critique of the study (What would you have done differently?)

NOTE: To access ProQuest articles, you MUST first open a Web browser window to the Ashworth College Library; otherwise, you will be denied access to the articles when you click the links. Once your browser is open to the Ashworth College Library, simply click on the link for the article you need to read.

· Chou, P. (2012). The relationship between engineering students’ self-directed learning abilities and online learning performances: A pilot study. Contemporary Issues in Education Research (Online), 5(1), 33. Retrieved from http://search.proquest.com/docview/1418450323?accountid=45844

· Orawiwatnakul, W., &Wichadee, S. (2011). A comparison of students’ outcomes in two classes: Business administration students VS communication arts students based on self-directed learning activities. Contemporary Issues in Education Research, 4(5), 23-32. Retrieved from http://search.proquest.com/docview/868724579?accountid=45844

2. Using ProQuest, find one (1) additional article related to the topic of self-directed learning. Read and briefly summarize the article. The summary should be 1 double-spaced page, including the following:

a. Purpose

b. Methods

c. Results

d. A short critique of the study (What would you have done differently?)

3. Develop a proposed research question, a hypothesis, and describe how you will test the hypothesis. This section of your paper should be 1 double-spaced page.

a. Based on the previous research that you have read and summarized, develop a proposed research question that you would like to study. Provide two (2) supporting facts from the previous research to justify the need for your proposed study.

b. Based on the previous research, develop a hypothesis. Provide two (2) supporting facts to justify your hypothesis.

c. Provide a brief description of the proposed study that you would use to test your hypothesis, identifying the independent and dependent variables.

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Psychology of consulting and coaching

200 words:

What were the most essential coaching competencies in the coach-client relationship between Phil Jackson and Michael Jordan?

200 words: What were the most essential coaching competencies in the coach-client relationship between Bill Belichick and Tom Brady?

200 words:  What evaluation assessments and tools would FEMA use to identify a client’s development needs?

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Assignment: Application of Crisis Theory and Resiliency Theory to a Case Study

Assignment: Application of Crisis Theory and Resiliency Theory to a Case Study

It is common for social workers to be presented with a crisis situation brought forth by clients, families, communities, and/or organizations. The ultimate goal is to restore the client to equilibrium. The five stages of the crisis are (1) the hazardous event, (2) the vulnerable stage, (3) the precipitating factor, (4) the state of active crisis, and (5) the reintegration or crisis resolution phase.

There are times when a social worker will use more than one theory to assist in conceptualizing the problem and intervention, particularly if the theories complement each other. For example, resiliency theory can be used alongside crisis theory.

To prepare: Review and focus on the same case study that you chose in Week 2.

By Day 7

Submit a 1- to 2-page case write-up that addresses the following:

· Map the client’s crisis using the five stages of the crisis.

· Describe the client’s assets and resources (in order to understand the client’s resilience).

· Describe how you, the social worker, will intervene to assist the client to reach the reintegration stage of the crisis. Be sure that the intervention promotes resiliency.

· Evaluate how using crisis theory and resiliency theory together help in working with a client.

·

Be sure to:

· Identify and correctly reference the case study you have chosen.

· Use literature to support your claims.

· Use APA formatting and style.

· Remember to double-space your paper.

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Were any hot button topics included? Did you agree/disagree with the views expressed in the article – explain your stance.

Conduct and online search of current events related to the field of global/cross-cultural psychology. Find a minimum of three (3) articles you want to summarize and discuss (must be from the last 90 days).

Your writeup must be at least 4-5 pages in length and formatted according to APA guidelines. Page count does not include title page or references page.

You are not required to include an abstract.

You are required to include pagination, headings, citations, and a running head.

You are required to use at least 2 peer reviewed journal articles for your project.

In your writeup, include discussion of the following for EACH article:

  • Name, Date, and Publication/Website of Article (Must be in last 90 days)
  • Global Psychology Themes discussed or of focus in articles
  • Factors/considerations in the following areas as they relate to global psychology:
    • Cultural background
    • Gender identification
    • Sexual orientation
    • Religious beliefs
  • Were any hot button topics included? Did you agree/disagree with the views expressed in the article – explain your stance.
  • How accurate is the article in relaying information from the field of global psychology and mental health treatment?

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Describe one way you can leverage any strengths you have in research and information literacy to promote your success. Consider successes, lessons learned, or skills you have gained as a result of your past academic, personal, or professional experiences. 

  (Write 3 to 4 sentences per question)

1. Describe one way you can leverage any strengths you have in research and information literacy to promote your success. Consider successes, lessons learned, or skills you have gained as a result of your past academic, personal, or professional experiences. 

2.

1. Why do you think it is important to use source materials to support your viewpoints? Why is it important that the sources you use in your coursework be scholarly sources? 

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