Question 1

Ramos Repair Company paid $750 in dividends to its stockholders.How does this transaction affect Ramos Repair Company's accounting equation?

Accepted Answer

A)  Increase Assets (Accounts Receivable) and decrease Assets (Cash) 
B)  Decrease Assets (Cash) and decrease Stockholders' Equity (Dividends) 
C)  Decrease Assets (Cash) and decrease Liabilities (Accounts Payable) 
D)  Increase Assets (Cash) and decrease Stockholders' Equity (Dividends) E) B) and D)
F) B) and C)

Question 2

Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Accepted Answer

The three factors are: (1)individual cha...

Question 3

Darnell Company purchased $88,000 of computer equipment from Joseph Company.Darnell Company paid for the equipment using cash that had been obtained from the sale of capital stock to Donnie Darnell.
Which entity or entities (Darnell Company,Joseph Company,Donnie Darnell)should record the transaction involving the computer equipment on their accounting records?

Accepted Answer

Darnell Co...

Question 4

The role of accounting is to provide many different users with financial information to make economic decisions.

Accepted Answer

A) True 
 B)False

Question 5

There are four transactions that affect stockholders' equity.
(a)What are the two types of transactions that increase stockholders' equity?
(b)What are the two types of transactions that decrease stockholders' equity?

Accepted Answer

(a)Issue of capital ...

Exam 1: Introduction to Accounting and Business

There are four transactions that affect stockholders' equity. (a)What are the two types of transactions that increase stockholders' equity? (b)What are the two types of transactions that decrease stockholders' equity?

Correct Answer
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(a)Issue of capital ...
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Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Correct Answer
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The three factors are: (1)individual cha...
View Answer

Ramos Repair Company paid $750 in dividends to its stockholders.How does this transaction affect Ramos Repair Company's accounting equation?

Correct Answer
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Correct Answer
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Darnell Co...
View Answer

The role of accounting is to provide many different users with financial information to make economic decisions.

Correct Answer
verified

Exam 1: Introduction to Accounting and Business

There are four transactions that affect stockholders' equity. (a)What are the two types of transactions that increase stockholders' equity? (b)What are the two types of transactions that decrease stockholders' equity?

Correct Answerverified(a)Issue of capital ...View AnswerShow Answer

Companies like Enron,WorldCom,and Tyco International,Ltd.have been caught in the midst of ethical lapses that led to fines,firings,and criminal and/or civil prosecution.List and briefly describe three factors that are responsible for what went wrong in these companies.

Correct AnswerverifiedThe three factors are: (1)individual cha...View AnswerShow Answer

Ramos Repair Company paid $750 in dividends to its stockholders.How does this transaction affect Ramos Repair Company's accounting equation?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedDarnell Co...View AnswerShow Answer

The role of accounting is to provide many different users with financial information to make economic decisions.

Correct AnswerverifiedShow Answer

Correct Answer
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(a)Issue of capital ...
View Answer

Correct Answer
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The three factors are: (1)individual cha...
View Answer

Correct Answer
verified

Correct Answer
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Darnell Co...
View Answer

Correct Answer
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