Accounting Review Chapter 1 – Flashcards

Generally Accepted Accounting Principles (GAAP) are currently formulated by the

Which type of business organization is owned by only one owner

Which of the following characteristics best describes a corporation? A. a business with a single owner B. is not taxed C. stockholders not personally liable for entity's debts D. not a separate taxable entity

Assume that Global Cleaning Services performed cleaning services for a department store on account for $180. How would this transaction affect Global Cleaning Service's accounting equation?

The balance sheep reports the

Accounting is the information system that

Which of the following is not an external user of a business's financial information ? Employees, investors, taxing authorities, or customers

Which of the following characteristics best describes a corporation? A. business with a single owner B. is not taxed C. stockholders not personally liable for entity's debts D. not a separate taxable entity

Which of the following requires accounting information to be complete, neutral, and free from material error? A. faithful representation concept B. cost principle C. economics entity assumption D. going concern assumption

At the end of a recent year, Global Cleaning Service, a full-service house and office cleaning service, had total assets of $3,360 and an equity of $2,280. How much were Global Cleaning Service's liabilities?

Consider the overall effects on Global Cleaning Service from selling and performing services on account for $6, 400 and paying expenses totaling $2,500. What is Global Cleaning Service's net income or net loss?

Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would the transaction affect Global Cleaning Service's accounting equation?

Assume Global Cleaning Service had a net income of $570 for the year, Global Cleaning Service'd beginning and ending total assets were $4, 520 and $4, 180, respectively. Calculate Global Cleaning Service's return on assets (ROA) for the year.