Questions and Answers of Introduction To Accounting

Explain the differences among sole proprietorships, partnerships, and corporations.
Aullman Company has $3 million in assets and $1.2 million in liabilities. What is its owners’ equity?
Swaby Company has $800,000 in liabilities and $100,000 of owners’ equity. What are its total assets?
Explain the role of accounting in ancient times.
Refer to E1.6. What is the debt-to-equity ratio for Swaby Company?Data from in E 1.6Swaby Company has $800,000 in liabilities and $100,000 of owners’ equity. What are its total assets?
Explain the role of accounting in the eleventh through fifteenth centuries in Italy.
Hoppal Company has $5 million in assets and $3.2 million in liabilities. What are its net assets?
What is an asset? Give an example.
Refer to E1.8. What is the debt-to-equity ratio of Hoppal Company?Data from E 1.8Hoppal Company has $5 million in assets and $3.2 million in liabilities. What are its net assets?
What is a liability? Give an example.
Noe Company has hundreds of owners located throughout the country. Once a month, Noe sends financial statements to its owners. These statements report the results of operations as measured in
Misty Briggs, owner of Briggs Machine Shop, maintains two checking accounts—one for personal affairs and one for the business. What basic accounting concept does this arrangement illustrate?
What is owners’ equity?
Henman Company made sales of $350,000 to customers, of which it received $200,000 in cash from customers. Henman incurred $210,000 in operating expenses, of which it paid $160,000 in cash. What was
Why is a partnership agreement important?
Collins Company made sales totaling $500,000 but received only $350,000 in cash from sales to customers. It paid $400,000 in cash for operating expenses but incurred only $200,000 of expenses this
Explain the business entity concept and how it affects accounting.
Explain the going concern concept and how it affects accounting.
Refer to E1.14. What is the current ratio of Shenefield Company? Classify each of the following as assets, liabilities, or owners’ equity for Kiren Company:A. Kiren Company’s owners have
What is the fundamental accounting equation?
Classify each of the following as assets, liabilities, or owners’ equity for Kiren Company:A. Kiren Company’s owners have contributed $175,000 in land to the company.B. Kiren Company owes $10,000
Who was Pacioli and why is he important?
What is the purpose of financial statements?
Refer to E1.18 and calculate the return on sales ratio for Bowen Company.Data from E1.18Classify the following as revenues or expenses assuming Bowen Company uses the accrual basis of
Explain the periodicity concept.
Interview a marketing, management, or finance instructor at your school to determine the accounting information used by individuals with these particular backgrounds. Describe what you discover.
How is income measured using the cash basis of accounting?
Prepare a list of your personal assets and liabilities. What is your net asset position?
What is limited liability? Is it desirable? Why or why not?
Assume you and your friends are going to start a business. Should you organize as a sole proprietorship, partnership, or corporation? Why?
How is income measured using the accrual basis of accounting?
How did the 1929 stock market crash affect accounting and business?
What are generally accepted accounting principles? Who is responsible for them?
Why did limited partnerships, S-corporations, limited liability companies, and limited liability partnerships arise?
What are the four basic financial statements and what is the purpose of each?
What is the purpose of the Codification?

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