Identifying accounts Consider the following accounts: a. Accounts Payable b. Cash c. Common Stock d. Accounts Receivable e. Rent Expense f. Service Revenue g. Office Supplies h. Dividends i. Land j. Salaries Expense Identify each account as Asset, Liability, or Equity
Accounts are identified as follows:
Assets indicate the business's resources that are owned and controlled by the business itself. It includes cash, accounts receivable, supplies, land, building, etc.
Liability indicates the obligations that a business owes to the creditors. It includes accounts payable, creditors, notes payable, etc.
Equity indicates the claim of the owners on the assets of the business. It includes common stock, retained earnings, revenues, expenses, etc.
Question: Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the following predetermined overhead allocation rates:
Allocation Base Overhead Allocation Rate
Designing Number of designs $ 290 per design
Planting Number of plants $ 20 per plant
The Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants.
2. If Kerry paid $3,540 for the job, what is the operating income or loss?
Consider the following accounting terms and definitions, and match each term to the definition:
1. Sole proprietorship
2. Faithful representation
a. Set of global accounting guidelines, formulated by
b. Holds that fair market value should not be used
over actual costs
c. Stands for Financial Accounting Standards Board
d. Owner is referred to as a proprietor
e. Asserts that accounting information should be
complete, neutral, and free from material error
7. Cost principle
f. An examination of a company’s financial statements
g. Has two or more owners (called partners)
h. U.S. governmental agency that oversees the U.S.
i. Type of entity that is designed to limit personal
liability exposure of owners to the entity’s debts
j. Person or business lending money
Match each example with a component of a computerized accounting information system. Components may be used more than once.
|1. Server||a. Source documents and input devices|
|2. Bank checks||b. Processing and storage|
|3. Reports||c. Outputs|
|6. Financial statement|
|7. Bar code scanner|
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