Accounting Midterm 1 Chapter 1

Assets = Liabilities + Stockholder's Equity

Company A has $100 worth of assets and $30 worth of Stockholder's Equity, how much is liability?

Define "Debit"

Which of the following are asset accounts?

Which of the following are liability accounts?

Which of the following are Stockholder's Equity accounts?

If Company X purchases supplies on account, which account increases?

If Company X receives cash for services performed, which account increases?

If Company X pays expenses in cash, which account decreases?

If Stockholders invested cash in Company X for common stock, which account increases?

Receiving cash for service performed is what type of transaction?

Congress passed the Sarbanes-Oxley Act to ensure that investors invest only in companies that will be profitable.

The standards of conduct by which actions are judged as loyal or disloyal are ethics.

The primary accounting standard-setting body in the US is the Securities and Exchange Commission (SEC)

The historical cost principle is used to ensure that companies continue to report assets at their cost in which assets are held.

The monetary unit assumption requires that all transactions recorded be measurable in monetary terms.

What SE accounts falls under the Retained Earnings category?

Which of the following are Asset accounts?

Which of the following are Liability accounts?

How do you calculate Net Income?