Financial Accounting: Business Process Approach, Student Value Edition Plus New Mylab Accounting With Pearson Etext -- Access Card Package (3rd Edition)
3rd Edition
ISBN: 9780132962667
Author: Jane L. Reimers
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1SEA
Classify business transactions. (LO 2). For each of the following cash transactions, identify whether it is better described as an operating, financing, or investing activity.
- 1. An entrepreneur contributes his own money to start a new business.
- 2. The business buys a machine.
- 3. The business purchases inventory.
- 4. The business sells inventory to customers.
- 5. The business repays a loan.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Identify if it will Increase, Decrease or No effect.
1.What happens to the owner’s assets when the company receives cash from a bank loan?
2.What happens to the owner’s equity when the company receives cash?
3.What happens to the owner’s equity when the owner invests personal cash in the business?
4.What will happen to the company’s liquidity when some of its products are sold from inventory?
5.What happens to the owner’s assets when the company purchases equipment with its cash?
6.What happens to the owner’s assets when the company repays the bank that had lent?
Which of the following journal entry is True when the owner of a business invested cash in the business?
a.
Debit Cash and credit Capital.
b.
Debit Cash and credit Revenue.
c.
Debit Capital and credit Cash.
d.
Debit Revenue and credit Cash.
If a business owner invests $5,000 in cash into the business, which side of the T for the cash account would the $5,000 be recorded?
Debit Credit Net income It would not be recorded because the cash comes from the owner.
Chapter 1 Solutions
Financial Accounting: Business Process Approach, Student Value Edition Plus New Mylab Accounting With Pearson Etext -- Access Card Package (3rd Edition)
Ch. 1 - 1. What is the main purpose of a business? 2....Ch. 1 - Prob. 2YTCh. 1 - 1. What are the two sources of financing for a...Ch. 1 - 1. What are revenues and expenses? 2. What are the...Ch. 1 - 1. What are the two parts of shareholders equity?...Ch. 1 - Prob. 6YTCh. 1 - Prob. 7YTCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3Q
Ch. 1 - Prob. 4QCh. 1 - What are the advantages of the corporate form of...Ch. 1 - What are the disadvantages of the corporate form...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - What are the basic financial statements? Describe...Ch. 1 - What makes the income statement different from the...Ch. 1 - Prob. 11QCh. 1 - What type of activities relate to what the firm is...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Online Pharmacy Company borrowed 5,000 cash from...Ch. 1 - Prob. 7MCQCh. 1 - During its first year of business, West Company...Ch. 1 - Interest is the cost of a. purchasing inventory....Ch. 1 - Prob. 10MCQCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Identify balance sheet items. (LO 4). Classify the...Ch. 1 - Calculate owners equity. (LO 4). Doughnut Company...Ch. 1 - Prob. 4SEACh. 1 - Prob. 5SEACh. 1 - Calculate owners equity. (LO 4). Pasta Enterprises...Ch. 1 - Super Shop had a retained earnings balance of...Ch. 1 - Prob. 8SEBCh. 1 - Prob. 9SEBCh. 1 - Breck Company shows 80,000 worth of assets on its...Ch. 1 - Prob. 11SEBCh. 1 - For each of the following, calculate the missing...Ch. 1 - Prob. 13SEBCh. 1 - M Company had a retained earnings balance of 4,200...Ch. 1 - Prob. 15EACh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 17EACh. 1 - Prob. 18EACh. 1 - Enter each transaction below into the accounting...Ch. 1 - Prob. 20EACh. 1 - For each of the transactions given, tell whether...Ch. 1 - Prob. 22EACh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 24EACh. 1 - Relationship between income statement and balance...Ch. 1 - Bob started a pool cleaning business on the first...Ch. 1 - Prob. 27EACh. 1 - Retained earnings and cash. (LO 4). Checkmate...Ch. 1 - Prob. 29EACh. 1 - Prob. 30EBCh. 1 - Prob. 31EBCh. 1 - Prob. 32EBCh. 1 - Prob. 33EBCh. 1 - Prob. 34EBCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Prob. 36EBCh. 1 - Prob. 37EBCh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 39EBCh. 1 - Prob. 40EBCh. 1 - Frank Frock started a consulting business on the...Ch. 1 - Prob. 42EBCh. 1 - Prob. 43EBCh. 1 - Prob. 44EBCh. 1 - Prob. 45PACh. 1 - Prob. 46PACh. 1 - Prob. 47PACh. 1 - Analyze business transactions and the effect on...Ch. 1 - Prob. 49PACh. 1 - Analyze business transactions and prepare the...Ch. 1 - Prob. 51PACh. 1 - Prob. 52PBCh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 54PBCh. 1 - Prob. 55PBCh. 1 - Prob. 56PBCh. 1 - Prob. 57PBCh. 1 - Prob. 58PBCh. 1 - Prob. 1FSACh. 1 - Prob. 2FSACh. 1 - Prob. 3FSACh. 1 - What is the Walt Disney Companys key objective? Go...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Name a source document that provides information about each of the following types of business transactions: a. Cash payment b. Cash receipt c. Sale of goods or services d. Purchase of goods or servicesarrow_forwardCHALLENGE PROBLEM In this chapter, you learned about three important financial statements: the income statement, statement of owners equity, and balance sheet. As mentioned in the margin note on page 34, most firms also prepare a statement of cash flows. Part of this statement reports the cash received from customers and cash paid for goods and services. REQUIRED Take another look at the Demonstration Problem for Kenny Youngs Home and Away Inspections. Note that when revenues are measured based on the amount earned, and expenses are measured based on the amount incurred, net income for the period was 4,165. Now, compute the difference between cash received from customers and cash paid to suppliers of goods and services by completing the form provided below. Are these measures different? Which provides a better measure of profitability?arrow_forwardAssume a company has a $350 credit (not cash) sale. How would the transaction appear if the business uses accrual accounting? A. $350 would show up on the balance sheet as a sale. B. $350 would show up on the income statement as a sale. C. $350 would show up on the statement of cash flows as a cash outflow. D. The transaction would not be reported because the cash was not exchanged.arrow_forward
- Which of the following is not a question that can be answered with the cash flow statement?A. How much cash did the business spend or receive in investing activities for the accounting period?B. How much inventory does the business have on hand at the end of the accounting period after cash purchases?C. What was the cash movement for the accounting period? D. How much cash was provided or used by the business’s operating activities for the accounting period?arrow_forwardWhich of the following is not a question that can be answered with the cash flow statement?A.How much inventory does the business have on hand at the end of the accounting period after cash purchases?B.How much cash was provided or used by the business’s operating activities for the accounting period?C.How much cash was did the business spend or receive in investing activities for the accounting period?D.What was the cash movement for the accounting period?arrow_forwardIndicate how each business transaction affects the basic accounting equation. Paid cash for cleaning services. Purchased equipment for cash. Issued shares to investors in exchange for cash. Paid an account payable in full.arrow_forward
- identify which of the following transactions fall under operating,investing, and financing activities 1. Cash received from customers2. Cash paid to suppliers3. Cash paid to employees4. Cash paid to purchase equipment (the company does not sell equipment)5. Cash received from the sale of furniture (company’s main line of business is not related to furniture)6. Depreciation expense7. Sale of goods on credit8. Purchase of goods on credit9. Cash received from getting a loan from a bankarrow_forwardMatch each transaction to one of the following activities of an organization: financing activity(F), investing activity (I), or operating activity (O). An owner contributes cash to the business.arrow_forwardI. Direction: Identify what describes the following statement. Write your answer on the blank before the number. ____________________1. It pertains to the state of one’s personal monetary affairs.____________________2. It measures the ability to generate earnings from its resources or investments. ____________________3. It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business. ____________________4. It measures the ability of the company to settle its short term debts. ____________________ 5. It measures how the business manage its assets or resources to produce output without wastage. ____________________6. It presents the financial statement amounts as a percentage of a base number. ____________________7. It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability. ____________________8. These users of financial information are interested…arrow_forward
- Which one of the following is not a nominal account?A. purchases accountB. sales accountC. salaries accountD. cash account Which one of the following is a characteristic of a valid business transaction? A. It is an event measurable in terms of money B. It affects the financial position of the business C. It should be supported by a source document D. All of the abovearrow_forwardDirection: Identify what describes the following statement. Write your answer on the blank before the number. ____________________1. It pertains to the state of one’s personal monetary affairs. ____________________2. It measures the ability to generate earnings from its resources or investments. ____________________3. It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business. ____________________4. It measures the ability of the company to settle its short term debts. ____________________ 5. It measures how the business manage its assets or resources to produce output without wastage. ____________________6. It presents the financial statement amounts as a percentage of a base number. ____________________7. It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability. ____________________8. These users of financial information are…arrow_forwardAccording to concept of accounting, financial or business transaction is recorded: a ) when cash is received or paid b) when transaction occurs c) when profit is computed D) when balance sheet is prepared =================================== Which of below users considered as Internal users of accounting information system? a. Investor b. Middle management c. Bank d. Buyer ========================== Creditors of a business may want to use the financial statements to: a. Be sure that after-sales service will continue b. Be sure of an increasing share of the market c. Check that the business is making a profit d. Check that they are likely to be paid when duearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License