1.(TCO
1) The Accounting Equation is used to develop the organizations financial
reports. (1) Describe what owners’ equity is (10 points) and (2) provide an
example of an owners’ equity account. (10 points) (Points : 20)
2.(TCO
1) The financial statements present a company to the public in financial
terms. (1) Which financial statement identifies how well the company
performed during the year (10 points) and (2) explain what information this
financial statement provides. (10 points) (Points
: 20)
3.(TCO
1) The accounting profession follows a set of guidelines for measurement and
disclosure of financial information called the Generally Accepted Accounting
Principles (GAAP). (1) Explain what the Entity Assumption is (10 points) and
(2) provide an example of its application. (10 points) (Points : 20)
4.(TCO
2) Transaction analysis results in the development of a journal entry.
Supplies are purchased on account agreeing to pay $2,500 within 30 days. (1)
Name the accounts impacted and how using the format account name/debit or
credit/dollar amount (10 points) and (2) explain how the Accounting Equation
is impacted. (10 points) (Points : 20)
5.(TCO 3) Adjusting Entries are required at the
end of the period to ensure that accrual accounting principles are applied. At
the beginning of the month $350 of office supplies were purchased. There was not
a beginning balance and the one purchase was the only one for the month. At the
end of the month $100 of supplies remained. Develop the adjusting entry. (1)
Name the accounts impacted and how using the format account name/debit or
credit/dollar amount (10 points) and (2) explain how the Accounting Equation is
impacted. (10 points) (Points
: 20)
6. (TCO 5) Internal Controls are required to
safeguard assets and to ensure ethical business practices. (1) Identify
and explain the reason for any two of the seven internal control procedures (10
points) and (2) provide examples of how your two selected internal control
procedures will meet the goal of safeguarding assets and promoting ethical
business practices. (15 points)(Points : 25)
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