Question 1

A company has liabilities of $475,000 and equity of $925,000.What is the amount of its assets?

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Question 2

Identify and describe the four basic financial statements.

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Question 3

Identify and describe the three major activities of a business organization.

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Question 4

Lorton's Web Services has assets of $265,000 and liabilities of $130,000.Calculate the amount of equity.

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Question 5

What is the purpose of return on assets as an analytical tool?

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Question 6

Jack Dorsey,Evan Williams,and Biz Stone are the owners of the social communications network,Twitter.If they also own a personal collection of vintage bobble heads valued at $25,000,how would the bobble heads be reflected on the company books? State the accounting concept or principle that supports your answer.

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Question 7

How does the going-concern principle affect the reported asset values of a business?

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Question 8

On May 1,Chuck Taylor formed FastForward,a shoe consulting business as a corporation.To start the business he invested $750,000 in cash.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

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Question 9

What distinguishes liabilities from equity?

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Question 10

You are reviewing the accounting records of Cathy's Antiques,Inc.owned by Cathy Miller.You have uncovered the following situations.Compose a memo to Ms.Miller that cites the appropriate accounting principle and the suggested action for each separate situation.A.In August,a check for $500 was written to Wee Day Care Center.This amount represents child care for her son Brandon.
B.Cathy plans a Going Out of Business Sale for May,since she will be closing her business for a month-long vacation in June.She plans to reopen July 1 and will continue operating Cathy's Antiques indefinitely.
C.Cathy received a shipment of pine furniture from Quebec,Canada.The invoice was stated in Canadian dollars.
D.Joseph Clark paid $1,500 for a dining table.The amount was recorded as revenue.The table will be delivered to Mr.Clark in six weeks.

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Question 11

Discuss the relationship of risk to return.

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Question 12

A company has assets of $500,000 and equity of $350,000.What is the amount of liabilities?

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Question 13

A parcel of land offered for sale at $600,000 is assessed for tax purposes at $500,000,is recognized by its purchasers as easily being worth $575,000,and is purchased for $570,000.At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

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Question 14

A company performed testing services for a client.The client paid the company $3,000 in cash.Enter the appropriate amounts for this transaction into the company's accounting equation format shown below:

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Question 15

A company purchased $7,000 of supplies and testing equipment on credit.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

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Question 16

Identify the risk and the return in each of the following examples:
A.Investing $500 in a CD at 4.5% interest.
B.Placing a $100 bet on an NBA game.
C.Investing $10,000 in Microsoft stock.
D.Borrowing $20,000 in student loans.

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Question 17

Sara Bloom has prepared the following analysis of September transactions for her business,Blooming Florist.Unfortunately,she has lost some information.Determine the missing amounts (a) through (c) below:

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Question 18

A company paid its employees $90,000 in cash for wages earned during the past two weeks.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

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Question 19

A company paid its landlord $15,000 cash for this month's rent.Enter the appropriate amounts for this transaction into the accounting equation format shown below:

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Question 20

If the liabilities of a business increased $86,000 during a period of time and equity in the business decreased $23,000 during the same period,enter the appropriate amounts for this activity in the accounting equation format shown below.

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Quiz 1: Introducing Financial Accounting