Comments on: The primary objective of financial accounting is to? http://smallbusinessmerchantaccounts.org/the-primary-objective-of-financial-accounting-is-to.htm Thu, 09 Sep 2010 17:25:25 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: capwest5a http://smallbusinessmerchantaccounts.org/the-primary-objective-of-financial-accounting-is-to.htm/comment-page-1#comment-2162 capwest5a Thu, 25 Feb 2010 14:26:03 +0000 http://smallbusinessmerchantaccounts.org/the-primary-objective-of-financial-accounting-is-to.htm#comment-2162 I don't have time to do them all; but I'll get you started: 1. A) debit accounts receivable for $2,000 (the merchant's fee doesn't affect the cutomer's tranaction). 18. C) assets, liabilities, and stockholders' equity. 19. A) Recording revenue in December 2006 for units manufactured but not yet sold to customers. (Even if the items have been manufactured, you can't record them as revenue until thay are sold). 22. E) None are correct. Started the year with a $200,000 credit balance in its retained earnings account. During 2007, the company earned net income of $70,000 and declared and paid dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. So the year-end retained earnings balance is ($200,000 + $70,000 - $10,000 + $15,000) = $275,000 23.A) Not change total assets. I don’t have time to do them all; but I’ll get you started:

1. A) debit accounts receivable for $2,000 (the merchant’s fee doesn’t affect the cutomer’s tranaction).

18. C) assets, liabilities, and stockholders’ equity.

19. A) Recording revenue in December 2006 for units manufactured but not yet sold to customers. (Even if the items have been manufactured, you can’t record them as revenue until thay are sold).

22. E) None are correct. Started the year with a $200,000 credit balance in its retained earnings account. During 2007, the company earned net income of $70,000 and declared and paid dividends of $10,000. Also, the company received cash of $15,000 as an additional investment by its owners. So the year-end retained earnings balance is ($200,000 + $70,000 - $10,000 + $15,000) = $275,000

23.A) Not change total assets.

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