q1q2q3q4q5q6q78/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 2/21.Award: 0.90 out of 0.90 pointsExercise 1-2 Identifying accounting users and uses LO C2Part AIdentify the following questions as most likely to be asked by an internal or an external user. Questions External/Internal1. What are reasonable payroll benefits and wages? Internal2. Should we make a five-year loan to that business? External3. What are the costs of our product’s ingredients? Internal4. Do income levels justify the current stock price? External 5.Should we spend additional money for redesign of our product?Internal6. Which firm reports the highest sales and income? External7. What are the costs of our service to customers? InternalPart BIdentify the following users of accounting information as either an internal or an external user. Accounting information user External/Internal1.Research and development directorInternal 2. Human resources director Internal3. Nonexecutive employee External4. Shareholders External5. Distribution managers Internal6. Creditors External7. Production supervisors Internal8. Purchasing manager InternalReferencesWorksheet Exercise 1-2Identifyingaccounting usersand uses LO C2Learning Objective: 01-C2 Identify usersand uses of, and opportunities in,accounting.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/12.Award: 0.90 out of 0.90 pointsScore: 9.98/10 Points 99.80 %Exercise 1-6 Distinguishing business organizations LO C4Consider the following separate situations, identify each as being a sole proprietorship, partnership orcorporation. Description Business Organizationa.Micah Douglas and Nathan Logan own Financial Services, a financial services provider. Neither Douglas nor Logan has personal responsibility for the debts of Financial Services.Corporationb.Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business.Partnershipc.IBC Services does not have separate legal existence apart from the one person who owns it.Sole proprietorshipd. Trent Company is owned by Trent Malone, who is personally liable for the company’s debts. Sole proprietorshipe. Ownership of Zander Company is divided into 1,000 shares of stock. Corporationf. Physio Products does not pay income taxes and has one owner. Sole proprietorshipg. AJ Company pays its own income taxes and has two owners. CorporationReferencesWorksheet Exercise 1-6 Distinguishingbusiness organizations LOC4Learning Objective: 01-C4 Explain generally acceptedaccounting principles and define and apply severalaccounting principles.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/13.Award: 0.90 out of 0.90 pointsScore: 9.98/10 Points 99.80 %Exercise 1-7 Identifying accounting principles and assumptions LO C4Match each of the numbered descriptions with the principle or assumption it best reflects. Description Principle/Assumption1. A company reports details behind financial statements that would impact users’ decisions. Full disclosure principle2. Financial statements reflect the assumption that the business continues operating. Going-concern assumption3. A company records the expenses incurred to generate the revenues reported. Matching (expense recognition) principle4. Derived from long-used and generally accepted accounting practices. General accounting principle5. Every business is accounted for separately from its owner or owners. Business entity assumption6. Revenue is recorded only when the earnings process is complete. Revenue recognition principle7. Usually created by a pronouncement from an authoritative body. Specific accounting principle8. Information is based on actual costs incurred in transactions. Cost principleReferencesWorksheet Exercise 1-7 Identifyingaccounting principles andassumptions LO C4Learning Objective: 01-C4 Explain generally acceptedaccounting principles and define and apply severalaccounting principles.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/14.Award: 0.90 out of 0.90 pointsScore: 9.98/10 Points 99.80 %Exercise 1-9 Using the accounting equation LO A1[The following information applies to the questions displayed below.]Answer the following questions. (Hint: Use the accounting equation.)ReferencesSection Break Exercise 1-9 Usingthe accountingequation LO A1Exercise 1-9 Part bb. Office Store has assets equal to $123,000 and liabilities equal to $47,000 at year-end. What is the totalequity for Office Store at year-end? Assets = Liabilities + Equity$ 123,000 = $ 47,000 + $ 76,000ReferencesWorksheet Exercise 1-9 Part b Learning Objective: 01-A1 Define andinterpret the accounting equation andeach of its components.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/15.Award: 0.90 out of 0.90 pointsScore: 9.98/10 Points 99.80 %Exercise 1-14 Analysis of return on assets LO A2Swiss Group reports net income of $34,000 for 2015. At the beginning of 2015, Swiss Group had $127,000in assets. By the end of 2015, assets had grown to $177,000. What is Swiss Group's 2015 return on assets? Return on AssetsChoose Numerator: / Choose Denominator: = Return on AssetsNet income/ Average total assets= Return on assets$ 34,000/ $ 152,000= 22.4% ReferencesWorksheet Exercise 1-14 Analysisof return on assets LOA2Learning Objective: 01-A2 Compute andinterpret return on assets.8/2/2017 Assignment Print Viewhttp://ezto.mheducation.com/hm_accounting.tpx?todo=printviewSingle 1/4Score: 9.98/10 Points 99.80 %Use the following information for exercise 15 to 18 LO P2[The following information applies to the questions displayed below.]On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,890 inassets to launch the business. On October 31, the company’s records show the following items and amounts.Cash $ 15,140 Cash withdrawals by owner $ 830 Accounts receivable  12,720 Consulting fees earned  12,720 Office supplies  2,110 Rent expense  2,380 Land  46,010 Salaries expense  5,620 Office equipment  16,780 Telephone expense  780 Accounts