Ch 6: connect

Question 1

\Financing provided by owners is referred to as _____

Answer 1

contributed capital

Question 2

True or false: An external event is a transaction the firm conducts with a separate economic entity.

Answer 2

true

Question 3

a ___________transaction is an event that affects the financial position of the company but does not include an exchange with a separate economic entity.

Answer 3

internal

Question 4

Record the issuance of additional shares for $1,498 cash; total par value was $1 and the rest was in excess of par value.

Answer 4

Cash - D 1494
additional share - C 1797
common stock -1

Question 5

Represents the shares issued at par value.

Answer 5

common stock

Question 6

Accounting information should be measured and reported in the national monetary unit without adjustment for changes in purchasing power.

Answer 6

monetary unit assumption

Question 7

. The concept that assets should be recorded at the cash-equivalent value on the exchange date.

Answer 7

Historical cost principle

Question 8

Cumulative earnings of a company that are not distributed to the owners.

Answer 8

retained earnings

Question 9

Financing provided by owners and by business operations.

Answer 9

stockholders equity

Question 10

. A legal amount per share.

Answer 10

par value

Question 11

when common stock is repurchased what account is this

Answer 11

treasury stock