ACCN 2010 Chapter 1 Homework Assignment 1

a.

Assets = Liabilities + Stockholders’ Equity.                              

                             Certified Public Accountant (CPA) Revenue Basic Accounting Equation Liabilities Sarbanes-Oxley Act (SOX) Management Discussion and Analysis (MD&A) Expenses Net Loss Stockholders’ Equity Dividends Sole Proprietorship

b.

An individual who has met certain criteria and is thus allowed to perform audits of corporations.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Expenses Net Loss Sarbanes-Oxley Act (SOX) Certified Public Accountant (CPA) Liabilities Basic Accounting Equation Revenue Dividends Management Discussion and Analysis (MD&A) Stockholders’ Equity Sole Proprietorship

c.

Payments of cash from a corporation to its stockholders.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

d.

The cost of assets consumed or services used in the process of generating revenues.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Expenses Basic Accounting Equation Revenue Net Loss Dividends Liabilities Sarbanes-Oxley Act (SOX) Management Discussion and Analysis (MD&A) Stockholders’ Equity Sole Proprietorship Certified Public Accountant (CPA)

e.

Amounts owed to creditors in the form of debts and other obligations.

                             Certified Public Accountant (CPA) Sarbanes-Oxley Act (SOX) Management Discussion and Analysis (MD&A) Stockholders’ Equity Revenue Sole Proprietorship Dividends Net Loss Liabilities Expenses Basic Accounting Equation

f.

A section of the annual report that presents management’s views on the company’s ability to
pay near-term obligations, its ability to fund operations and expansion,
and its results of operations.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Management Discussion and Analysis (MD&A) Basic Accounting Equation Expenses Dividends Sole Proprietorship Sarbanes-Oxley Act (SOX) Certified Public Accountant (CPA) Liabilities Stockholders’ Equity Net Loss Revenue

g.

The amount by which expenses exceed revenues.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Net Loss Revenue Sole Proprietorship Dividends Basic Accounting Equation Sarbanes-Oxley Act (SOX) Stockholders’ Equity Liabilities Expenses Certified Public Accountant (CPA) Management Discussion and Analysis (MD&A)

h.

The increase in assets or decrease in liabilities resulting from the sale of goods or
the performance of services in the normal course of business.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Expenses Sole Proprietorship Basic Accounting Equation Stockholders’ Equity Revenue Net Loss Sarbanes-Oxley Act (SOX) Dividends Liabilities Certified Public Accountant (CPA) Management Discussion and Analysis (MD&A)

i.

Regulations passed by Congress to reduce unethical corporate behavior.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Revenue Sole Proprietorship Expenses Stockholders’ Equity Sarbanes-Oxley Act (SOX) Net Loss Basic Accounting Equation Certified Public Accountant (CPA) Dividends Management Discussion and Analysis (MD&A) Liabilities

j.

A business owned by one person.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Certified Public Accountant (CPA) Dividends Sarbanes-Oxley Act (SOX) Net Loss Liabilities Revenue Sole Proprietorship Management Discussion and Analysis (MD&A) Stockholders’ Equity Expenses Basic Accounting Equation

k.

The owners’ claim to assets.

                             Management Discussion and Analysis (MD&A) Stockholders’ Equity Net Loss Liabilities Sole Proprietorship Certified Public Accountant (CPA) Revenue Basic Accounting Equation Expenses Sarbanes-Oxley Act (SOX) Dividends

                             Sarbanes-Oxley Act (SOX) Expenses Sole Proprietorship Liabilities Management Discussion and Analysis (MD&A) Stockholders’ Equity Basic Accounting Equation Revenue Net Loss Certified Public Accountant (CPA) Dividends