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AU / Accounting / ACCT 2110 / What are the 3 types of businesses?

What are the 3 types of businesses?

What are the 3 types of businesses?


School: Auburn University
Department: Accounting
Course: Principles of Financial Accounting
Professor: Elizabeth miller
Term: Fall 2015
Tags: financial accounting, Miller, Auburn University, 2110, and Exam 1
Cost: 50
Name: ACCT 2110 Fall 2017 Exam 1 Study Guide
Description: General Knowledge and practice problems for Exam 1 that will be on Monday September 11
Uploaded: 09/04/2017
4 Pages 206 Views 17 Unlocks

ACCT 2110 Exam 1 Study Guide

What are the 3 types of businesses?

1. Know the 3 types of Businesses

2. Know the differences between the 3 types of Businesses

3. Know the three types of Business Activities 

4. Know the 4 Basic Financial Statements

5. Know what the GAAP, SEC, FASB, IASB, IFRS stand for and what they do

6. Know how to apply the Fundamental Accounting Equation 

7. Know what are considered assets, more specifically – current assets, long­term investments, PPE, and  intangible assets

8. Know what are considered liabilities, more specifically – current liabilities and long­term liabilities 9. Know what are considered stockholders’ equity 

10. Make a Balance Sheet for Cavernous Homes Inc. at December 31, 2013 from the given information

An analysis of the transactions of Cavernous Homes Inc. yields the following totals at  December 31, 2013: cash, $3,200; accounts receivable, $4,500; notes payable, $5,000; supplies,  $8,100; common stock, $7,000; and retained earnings, $3,800

How do you apply the fundamental accounting equation?

11. Know the two measures of liquidity

12. Know how to calculate working capital

13. Know how to calculate current ratio

14. Know the elements of income statements – specifically revenues, expenses, and net income 15. Make a Single Step Income Statement from the given information

An analysis of the transactions of Canary Cola Inc. for the year 2013 yields the following  information: service revenue, $78,000; supplies expense, $33,200; rent expense, $20,5000; and  dividends, $7,000

16. Make a Multiple Step Income Statement from the given information in the last question 17. Know how to calculate Net Profit Margin and what it means

18. Make a Retained Earnings Statement from the given information

Parker Company has a balance of $35,000 in retained earnings on January 1, 2013. During  2013, Parker reported revenues of $82,000 and expenses of $55,000. Parker also paid a dividend of $8,000.

What are the 7 steps of the accounting cycle?

Don't forget about the age old question of Who explained the processes of the earth?

19. Know the 3 types of cash flow and what are considered cash inflows and outflows for each type 20. Know the qualitative characteristics of GAAP

21. Know the assumptions of GAAP

22. Know the principles of GAAP

23. Know the 7 steps of the accounting Cycle

24. Be able to apply the Expanded Accounting Equation

25. Perform Transaction Analysis with the given information

a. Issued common stock ito investors in exchange for $30,000 cash

b. Borrowed $10,000 cash from First State Bank

c. Purchased $3,000 of supplies on credit

d. Paid for the purchase in Transaction c. 

26. Know what double­entry accounting is

27. Know what T­accounts are and how to apply them

28. Show the effects on Debit and Credit from the following transactions

a. Purchased office supplies on credit for $1,500 from Office Depot

b. Paid the $15,000 principal pluse $600 interest on a note payable

c. Provided $65,300 of service on credit

d. Provided $15,400 of service for cash 

29. Know how to make a journal entry

30. Make a journal entry from the following information a. June 1: Issued common stock to several investors for $100,000 b. June 8: Purchased equipment for $16,800

c. June 15: Made cash sales of $23,200 to customers We also discuss several other topics like What is the outer shell of the brain?

d. June 29: Paid a $4,500 dividend to stockholders 

31. Know what a general ledger is 

32. Know what a trial balance is

33. Prepare a trial balance with the following information

Service Revenue $23,150 Cash   12,850 Accounts Payable     2,825 Common Stock    15,000 Rent Expense     2,400

Dividends         $1,500 Salaries Expense          4,300 Equipment        12,725 Accounts Receivable          5,700 Advertising Expense               1,500

34. Answer the questions with the information given 

Tiger Corp.

The accountant for Tiger Corporation prepared the following list of account balances from the company's  records for the year ended December 31, 2016.

Glenn Corporation had the following list of account balances for the year ended December 31, 2016. If you want to learn more check out In social interaction, what is the meaning of self?
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Net Sales $2,000,000 Cash      $382,000 Accounts Receivable 120,000 Income Taxes Expense 196,000 Equipment, net 420,000 Common Stock 350,000 Accounts Payable 120,000 Interest Revenue 20,000 Operating Expenses 650,000 Cost of Goods Sold 800,000 Inventories 220,000 Interest Expense 10,000 Salaries Payable 50,000 Prepaid Rent 10,000

Notes Payable            200,000 Dividends 5,000 We also discuss several other topics like In diameter, how big is the milky way?

Retained Earnings,          January 1, 2016


1. Calculate Total Assets on December 31, 2016.

2. Calculate Income from Operations for the year ending December 31, 2016. 3. Calculate Ending Retained Earnings on December 31, 2016. 4. Calculate the Current Ratio on December 31, 2016.

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