Financial Accounting
3rd Edition
ISBN: 9780078025549
Author: J. David Spiceland, Wayne M Thomas, Don Herrmann
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1.1E
The following provides a list of transactions and a list of business activities.
| Transactions | Business Activities |
| 1. _____ Borrow from the bank. | a. Financing |
| 2. _____ Provide services to customers. | b. Investing |
| 3. _____ Issue common stock to investors. | c. Operating |
| 4. _____ Purchase land. | |
| 5. _____ Pay rent for the current period. | |
| 6. _____ -Pay dividends to stockholders. | |
| 7. _____ Purchase building. |
Required:
Match the transaction with the business activity by indicating the letter that corresponds to the appropriate business activity.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The following provides a list of transactions and a list of business activities.Transactions Business Activities1. _________Borrow from the bank. a. Financing2. _________Provide services to customers. b. Investing3. _________Issue common stock to investors. c. Operating4. _________Purchase land.5. _________Pay rent for the current period.6. _________Pay dividends to stockholders.7. _________Purchase building.Required:Match the transaction with the business activity by indicating the letter that corresponds to the appropriate business activity.
Preliminary course. Classify each of the
following accounts as an asset, liability,
equity, revenue or expense.
a Sales.
b Cost of goods sold.
Accounts receivable.
d Lease.
e Mortgage loan.
f Inventory or stock.
g Advertising.
h Interest paid on loans.
i
Bank overdraft.
j Company car.
k Equipment.
I Land and buildings.
m Owners' capital.
n Accounts payable.
Tax on net profit.
p Telephone.
q Accountant's fees.
Wages.
Cash.
t Insurance.
Retained profits.
v Debentures.
Owner s withdrawal may be classified as
Chapter 1 Solutions
Financial Accounting
Ch. 1 - Explain what it means to say that an accounting...Ch. 1 - Identify some of the people interested in making...Ch. 1 - What is the basic difference between financial...Ch. 1 - What are the two primary functions of financial...Ch. 1 - What are line three basic business activities that...Ch. 1 - Prob. 6RQCh. 1 - What are a few of the typical investing activities...Ch. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Provide the basic definition for each of the...
Ch. 1 - Prob. 11RQCh. 1 - What are the four primary financial statements?...Ch. 1 - What does it mean to say that the income...Ch. 1 - Prob. 14RQCh. 1 - What is the accounting equation? Which financial...Ch. 1 - Prob. 16RQCh. 1 - The retained earnings account is a link between...Ch. 1 - Prob. 18RQCh. 1 - Prob. 19RQCh. 1 - Prob. 20RQCh. 1 - Prob. 21RQCh. 1 - Prob. 22RQCh. 1 - Prob. 23RQCh. 1 - Prob. 24RQCh. 1 - Prob. 25RQCh. 1 - What are the three primary objectives of financial...Ch. 1 - Prob. 27RQCh. 1 - Prob. 28RQCh. 1 - Prob. 29RQCh. 1 - What is meant by the term cost effectiveness in...Ch. 1 - Prob. 31RQCh. 1 - Prob. 1.1BECh. 1 - Match each business activity with its description....Ch. 1 - Prob. 1.3BECh. 1 - Prob. 1.4BECh. 1 - For each transaction, indicate whether each...Ch. 1 - For each transaction, indicate whether each...Ch. 1 - Describe each financial statement (LO13) Match...Ch. 1 - Determine the location of items in financial...Ch. 1 - Prob. 1.9BECh. 1 - Indicate which of the following are objectives of...Ch. 1 - Prob. 1.11BECh. 1 - Prob. 1.12BECh. 1 - Prob. 1.13BECh. 1 - The following provides a list of transactions and...Ch. 1 - Falcon Incorporated has the following transactions...Ch. 1 - Prob. 1.3ECh. 1 - Eagle Corp. operates magnetic resonance imaging...Ch. 1 - Prob. 1.5ECh. 1 - Below are the account balances for Cowboy Law Firm...Ch. 1 - At the beginning of the year (January 1), Buffalo...Ch. 1 - Wolfpack Construction has the following account...Ch. 1 - Tiger Trade has the following cash transactions...Ch. 1 - Prob. 1.10ECh. 1 - Prob. 1.11ECh. 1 - Squirrel Tree Services reports the following...Ch. 1 - Prob. 1.13ECh. 1 - During its first five years of operations, Red...Ch. 1 - Below are approximate amounts related to retained...Ch. 1 - Below are approximate amounts related to balance...Ch. 1 - Below are approximate amounts related to cash flow...Ch. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - A Below are typical transactions for...Ch. 1 - Account classifications include assets,...Ch. 1 - Longhorn Corporation provides low-cost food...Ch. 1 - Below are-incomplete financial statements for...Ch. 1 - Prob. 1.5APCh. 1 - Prob. 1.6APCh. 1 - Listed below are nine terms and definitions...Ch. 1 - Below are typical transactions for Caterpillar...Ch. 1 - Prob. 1.2BPCh. 1 - Prob. 1.3BPCh. 1 - Prob. 1.4BPCh. 1 - Prob. 1.5BPCh. 1 - Prob. 1.6BPCh. 1 - Prob. 1.7BPCh. 1 - Prob. 1.1APCPCh. 1 - Prob. 1.2APFACh. 1 - Prob. 1.3APFACh. 1 - Prob. 1.4APCACh. 1 - Prob. 1.5APECh. 1 - Prob. 1.7APWC
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
- Which of the following transactions will increase an asset and increase stockholders’ equity?a. Performing a service on account for a customerb. Borrowing money from a bankc. Collecting cash from a customer on an account receivabled. Purchasing supplies on accountarrow_forwardSUBJECT: Financial Accounting and Reporting Instruction: Choose the Debit and Credit Accounts of the following transactions. TRANSACTION: Opened an account with Bank and made initial deposit1. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 2. Credit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation TRANSACTION: Bought Equipment on Account3. Debit *a. Cash In Bankb. Accounts Receivablec. Unused Laundy Suppliesd. Prepaid Insurancee. Equipmentf. Accounts Payableg. Unearned Incomeh. Amora, Drawingi. Amora, Capitalj. Service Incomek. Salaries ExpenseL.Taxes and Licensesm.Transportation 4. Credit *a. Cash In…arrow_forwardBelow are typical transactions for Caterpillar Inc.Type of Business Activity Transactions 1.____________ Pay for advertising. 2. ____________ Pay dividends to stockholders. 3. ____________ Collect cash from customer for previous sale. 4. ____________ Purchase a building to be used for operations. 5. ____________ Purchase equipment. 6. ____________ Sell land. 7. ____________ Receive a loan from the bank by signing a note. 8. ____________ Pay suppliers for purchase of supplies. 9. ____________ Provide services to customers. 10.____________ Invest in securities of another company.Required: Indicate whether each transaction is classified…arrow_forward
- Business makes payment of Bank loan. Which of the following is the correct journal entry? a. Dr Bank Loan account Cr Cash account b. Dr Cash account Cr Loan c. Dr Cash account. Cr Capital d. Dr Bank Cr Cash accountarrow_forwardFind the type of activity as Operating, investing, financing as per cash flow: 1.Salaries paid to employees 2.Dividend payment 3.Common shares issued 4.Bank loan repaid 5.Machinery purchasearrow_forwardWhat is the primary purpose of the Statement of Affairs ? a. To determine how much is owed by the customers b. To determine the amount for the owners equity c. To determine how is left in the bank account d. To determine if there was a gain or loss on disposal The term Margin is determined by which of the following operations? a. Adding all the incomes b. Dividing gross profit by sales c. Subtracting expenses from sales d. Multiplying capital by a decimal The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800…arrow_forward
- A financial statement to show what a business owns and owes at a particular ?point in time The bank statement for the business A balance sheet A statement of retained earnings A cash flow statement Oarrow_forwardGive typing answer with explanation and conclusion 1. ________ are items owed to a creditor. ________ are items owned by a company. ________ represents owners' claims to company resources. Expenses; Revenues; Net income Expenses; Revenues; Stockholders��� equity Liabilities; Assets; Stockholders' equity Liabilities; Assets; Net incomearrow_forwardCurrent Attempt in Progress Complete the below table indicating (a) whether each transaction increases (+), decreases (-), or has no effect on cash; (b) what other account beside Cash is affected in the transaction; and (c) whether the transaction should be classified as an operating activity, investing activity, financing activity, or noncash investing and financing activity. The first one has been done for you as an example. A list of transactions is below: arch 1. 2. 3. 4. 5 Provided services to a customer. Repaid a bank loan. Paid interest on the bank loan. Purchased equipment. Collected one of the accountr.rocnivable 8: (a) Cash + > > > Equipment Bank loan payable Sales Interest expense Service revenue Common shares Land/common shares Dividends payable Accounts receivable Salaries expense (c) Classification Operating activity Rain to stoparrow_forward
- Direction: Classify each transaction whether they operating, financing or investing. After which, indicate the reason for such classification. arearrow_forwardWhich of the following account is debited when account payable is converted into note payable? Account payable Interest Note payable Cash Which one of the following elements of financial statement helps in understanding the financial performance of the business iull lis M 直 0 TOSHIBAarrow_forwardBelow are typical transactions for Hewlett-Packard.Type ofBusiness Activity Transactions1.______________ Pay amount owed to the bank for previous borrowing.2. ______________ Pay utility costs.3. ______________ Purchase equipment to be used in operations.4. ______________ Provide services to customers.5. ______________ Purchase office supplies.6. ______________ Purchase a building.7. ______________ Pay workers’ salaries.8. ______________ Pay for research and development costs.9. ______________ Pay taxes to the IRS.10. ______________ Sell common stock to investors.Required:Indicate whether each transaction is classified as a financing, investing, or operating activity.arrow_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,
Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher: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,
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
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