Financial Accounting > EXAM > ACCT 221 Week 4 - Quiz,100% CORRECT (All)

ACCT 221 Week 4 - Quiz,100% CORRECT

Document Content and Description Below

1. Question : (TCO 1) The Accounting Equation is used to develop the organization's financial reports. (1) Describe what liabilities value would be if Assets are $50,000 and Owners' Equity is $25,000 ... by showing the Accounting Equation (10 points) and (2) provide an example of two liability accounts. (10 points) Question 2. Question : (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement requires input from the Income Statement and Statement of Retained Earnings (10 points), and (2) explain what information this financial statement provides. (10 points) Question 3. Question : (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the Stable-Monetary-Unit Assumption is (10 points) and (2) provide an example of its application. (10 points) Question 4. Question : (TCO 2) Transaction analysis results in the development of a journal entry. In the start-up of a business, the owner contributes $750,000 of cash. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) Question 5. Question : (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of $14,000. Develop the adjusting entry for year end. (1) Name the accounts impacted and how to use the format account name/debit or credit/dollar amount (10 points), and (2) explain how the Accounting Equation is impacted. (10 points) 1. Question : (TCO 5) E-commerce creates its own risks, and therefore special internal controls. (1) Identify and explain one pitfall and one security measure for an online business (10 points) and (2) provide examples of how your selected security measure will strengthen internal control. (15 points) Question 2. Question : (TCO 5) The bank account as a control device helps to protect cash. One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 251 of your textbook.) (25 points) Use the information below to prepare the bank reconciliation for Collier Cleaners for the month of September. •The bank statement indicated bank service charges of $63. •Outstanding checks as of September 30 amounted to $1,405. •Deposits in transit as of September 30 amounted to $2,769. •The ending balance per the September bank statement is $40,753. •Collier Cleaners bookkeeper mistakenly recorded a $1,610 cash disbursement as $1,160 for Office Supplies on check #2402. •The bank mistakenly recorded a deposit of $2,800 as $280 on February 17. •The bank made an EFT payment on behalf of the company for Insurance for $3,200. •Bank collected rent of $3,000 and a note, for $16,450, including interest of $450. •The ending cash balance per the books for September before any adjustments was 28,900. [Show More]

Last updated: 2 years ago

Preview 1 out of 2 pages

Buy Now

Instant download

We Accept: