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Introduction to Economics

Cambridge College

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Business Accounting

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    Business Accounting

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    2
    augustus 2022
    2022/2023
  • From the following list of selected items taken from the records of Hoosier Appliance Service as of a specific date, identify those that would appear on the balance sheet: 1. Accounts Receivable 2. Cash 3. Fees Earned 4. Land 5. Ming Hu, Capital 6. Supplies 7. Supplies Expense 8. Utilities Expense 9. Wages Expense 10. Wages Payable
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Business Accounting

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    Business Accounting

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    3
    augustus 2022
    2022/2023
  • A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2014, is shown below. The cash balance as of June 1, 2013, was $58,000. Prepare a statement of cash flows for Ethos Consulting Group for the year ended May 31, 2014.
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Business Accounting

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    Business Accounting

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    juli 2022
    2021/2022
  • a. Arrowhead Delivery Service is owned and operated by Gates Deeter. The following selected transactions were completed by Arrowhead Delivery Service during August: 1. Received cash from owner as additional investment, $25,000. 2. Paid creditors on account, $3,750. 3. Billed customers for delivery services on account, $22,400. 4. Received cash from customers on account, $11,300. 5. Paid cash to owner for personal use, $6,000. Indicate the effect of each transaction on the accounting equat...
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Business Accounting

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    Business Accounting

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    juli 2022
    2021/2022
  • Josh Reilly is the owner of Dispatch Delivery Service. Recently Josh paid interest of $4,500 on a personal loan of $75,000 that he used to begin the business. Should Dispatch Delivery Service record the interest payment? Explain.
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Business Accounting

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    Business Accounting

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    juli 2022
    2021/2022
  • A business had revenues of $640,000 and operating expenses of $715,000. Did the business (a) incur a net loss or (b) realize net income?
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Business Accounting

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    Business Accounting

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    64
    juli 2022
    2021/2022
  • 1. Twenty percent of all businesses in the United States are corporations and they account for 80% of the total business dollars generated. True False 2. A corporation is a separate entity for accounting purposes but not for legal purposes. True False 3. The financial loss that each stockholder in a corporation can incur is usually limited to the amount invested by the stockholder. True False 4. Under the Internal Revenue Code, corporations are required to pay federal ...
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Business Accounting

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    Business Accounting

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    4
    juli 2022
    2021/2022
  • U.S. GAAP Term IFRS International Term Statement of comprehensive income* Statement of comprehensive income Balance sheet Statement of financial position Interest expense Finance costs Net income Profit for the year Trading investments Financial assets at fair value through profit or loss Excess of issue price over par Share premium Examples: Accumulated other comprehensive income, treasury stock, unrealized gain (loss) on available-for-sale investments Reserves Notes payable Lo...
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Business Accounting

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    Business Accounting

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    juli 2022
    2021/2022
  • 1. Horizontal analysis is the percentage analysis of increases and decreases in corresponding statements. The percent change in the cash balances at the end of the preceding year from the end of the current year is an example. Vertical analysis is the percentage analysis showing the relationship of the component parts to the total in a single statement. The percent of cash as a portion of total assets at the end of the current year is an example. 2. Comparative statements provide informatio...
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Business Accounting

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    Business Accounting

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    51
    juli 2022
    2021/2022
  • 1. A company may temporarily have excess cash that is not needed for use in its current operations. Instead of letting excess cash remain idle in a checking account, most companies invest their excess cash in temporary investments. The primary objective of investing in temporary investments is to: a. earn interest revenue. b. receive dividends. c. realize gains from increases in the market price of the securities. 2. A gain or loss can occur when the selling price of the bond differs ...
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Business Accounting

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    Business Accounting

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    juli 2022
    2021/2022
  • 1. (1) To pay the face (maturity) amount of the bonds at a specified date. (2) To pay periodic interest at a specified percentage of the face amount. 2. a. Bonds that may be exchanged for other securities under specified conditions. b. The issuing corporation reserves the right to redeem the bonds before the maturity date. c. Bonds issued on the basis of the general credit of the corporation. 3. More than face amount. Because comparable bonds provide a market interest rate (11%...
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