Test Bank For Fundamental Financial Accounting Concepts 9th Edition By Thomas Edmonds – Test Bank

Test Bank For Fundamental Financial Accounting Concepts 9th Edition By Thomas Edmonds

Chapter 01 An Introduction to Accounting Reply Key
Brief Reply Questions
Point out how every occasion impacts the weather of monetary statements. Use the next letters to report your reply within the field proven beneath every factor. You don’t want to enter quantities.

1. Walker Co. issued widespread inventory for $150,000 money.

Reply: (I) (N) (I) (N) (N) (N) (I)

Studying Goal: 01-02

Stage of Studying: 2 Medium

Matter Space: Recording Enterprise Occasions Beneath the Accounting Equation
AACSB: Analytical Pondering
AICPA: BB Crucial Pondering
AICPA: FN Measurement
Blooms: Analyze

Suggestions:  Issuing widespread inventory is an asset supply transaction that will increase the enterprise’s belongings (money) and its stockholders’ fairness (widespread inventory).  It doesn’t have an effect on the revenue assertion, however is reported as a money move from financing actions within the assertion of money flows.

2. Nguyen Co. borrowed $50,000 money from MetropolitanBank.

Reply: (I) (I) (N) (N) (N) (N) (I)

Studying Goal:01-08

Matter Space: Recording Enterprise Occasions Beneath the Accounting Equation
AACSB: Analytical Pondering
AICPA: BB Crucial Pondering
AICPA: FN Measurement
Blooms: Analyze
Problem: 2 Medium

Suggestions:  Borrowing money is an asset supply transaction that will increase a enterprise’s belongings (money) and its liabilities (notes payable).  It doesn’t have an effect on the revenue assertion however is reported as a money move from financing actions within the assertion of money flows.

3. Bell Co. offered consulting companies for $20,000 money.

Reply: (I) (N) (I) (I) (N) (I) (I)

Studying Goal:01-08

Matter Space: Recording Enterprise Occasions Beneath the Accounting Equation
AACSB: Analytical Pondering
AICPA: BB Crucial Pondering
AICPA: FN Measurement
Blooms: Analyze
Problem: 2 Medium

Suggestions:  That is an asset supply transaction that will increase the enterprise’s belongings (money).  When a enterprise gives companies, it earns income.  Income will increase internet revenue, which is able to enhance fairness (retained earnings) on the finish of the accounting interval.  This occasion is reported as a money move from working actions within the assertion of money flows.

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