Question 1
Items from Income Statement, Balance Sheet and Statement of Retained Earnings for the same company are listed below. Solve for the missing amount of end-of-year Total Assets.
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ABC Corp.
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Common Stock
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22
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Dividends
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6
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Net Income
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51
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Retained Earnings, Beginning of Year
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105
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Retained Earnings, End of Year
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?
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Total Assets
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?
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Total Expenses
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117
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Total Liabilities
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88
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Total Revenues
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176
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Question 2
Using the following information, calculate the Net Income:
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Admissions Revenue
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385
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Concessions Expenses
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12
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Concessions Revenue
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79
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Film Rental Expenses
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40
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Office Expenses
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54
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Rent Expense
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33
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Salaries and Wages Expense
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46
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Assume no income tax.
Question 3
Using the following, sovle for the shareholders equity:
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Accounts Payable
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90
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Accounts Receivable
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95
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Cash
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88
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Equipment
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270
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Inventory
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96
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Notes Payable
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189
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Question 4
Using the following information, solve for the Retained Earnings:
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Accounts Payable
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16
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Common Stock
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128
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Notes Payable
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70
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Retained Earnings
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?
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Total Assets
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482
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Question 5
Using the following Balance Sheet items, find the Total Asset value:
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Accounts Payable
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63
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Common Stock
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159
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Notes Payable
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53
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Retained Earnings
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80
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Total Assets
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?
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Question 6
To determine whether generally accepted accounting principles (GAAP) were followed in the preparation of financial statements, an examination of:
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tax documents would be performed by the IRS.
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the company's accounting records would be performed by the SEC.
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the financial statements and related documents would be performed by an independent auditor.
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the financial statements and related documents would be performed by the FASB.
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Question 7
The following accounts are taken from the December 31, Year 4 financial statements of a company.
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Accounts Payable
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$2,075
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Accounts Receivable
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800
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Selling & Administrative Expenses
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2,500
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Cash
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2,200
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Common Stock
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2,000
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Dividends
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1,900
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Income Tax Expense
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400
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Interest Expense
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75
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Other Expenses
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500
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Notes Payable
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5,000
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Other Assets
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2,500
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Other Liabilities
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3,000
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Other Operating Expenses
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2,000
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Other Revenue
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300
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Property and Equipment
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11,000
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Retained Earnings, December 31, Year 3
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4,800
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Salaries and Wages Expense
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3,000
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Supplies
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300
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Service Revenue
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10,000
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Use the information above to answer the following question. What is the amount of total liabilities at the end of Year 4?
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$7,075.
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$10,075.
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$9,075.
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$12,975.
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Question 8
The Don't Bite Me Pest Control Company has 10,000 gallons of insecticide supplies on hand that cost $300,000; a bill from the vendor for $100,000 of these supplies has not yet been paid. The company expects to earn $800,000 for its services when it uses the insecticide supplies. The company's balance sheet would include an asset, Supplies, in the amount of:
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$10,000.
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$200,000.
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$300,000.
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$800,000.
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Question 9
A company started the year with the following: Assets $100,000; Liabilities $30,000; Common Stock $60,000; Retained Earnings $10,000. During the year, the company earned revenue of $5,000, all of which was received in cash, and incurred expenses of $3,000, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,000 to owners. Assume no other activities occurred during the year.Use the information above to answer the following question. The amount of assets at the end of the year is
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$105,000.
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$108,000.
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$104,000.
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$107,000.
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Question 10
Financing that individuals or institutions have provided to a corporation is:
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always classified as a liability.
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classified as a liability when provided by creditors and as stockholders' equity when provided by owners.
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always classified as equity.
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classified as a stockholders' equity when provided by creditors and a liability when provided by owners.
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Question 11
A company's financial records at the end of the year including the following amounts:
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Cash
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$70,000
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Accounts Receivable
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28,000
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Supplies
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4,000
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Accounts Payable
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10,000
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Notes Payable
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5,000
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Retained Earnings, beginning of year
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17,000
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Common Stock
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40,000
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Service Revenue
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53,000
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Wages Expense
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8,000
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Advertising Expense
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5,000
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Rent Expense
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10,000
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Use the information above to answer the following question. What is the amount of total stockholders' equity that would be reported on the Balance Sheet at the end of the year?
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$30,000.
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$57,000.
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$87,000.
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$102,000.
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Question 12
A company's balance sheet contained the following information:
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Common Stock
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$12,000
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Total Assets
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$176,000
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Accounts Payable
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64,000
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Retained Earnings
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28,000
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Notes Payable is the only other item on the balance sheet. Notes Payable must equal:
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$200,000.
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$8,000.
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$72,000.
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$344,000.
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Question 13
Which of the following would not be reported as a liability on the balance sheet?
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Accounts Payable
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Common Stock
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Notes Payable
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Salaries and Wages Payable
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Question 14
A company's financial records at the end of the year including the following amounts:
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Cash
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$70,000
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Accounts Receivable
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28,000
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Supplies
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4,000
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Accounts Payable
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10,000
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Notes Payable
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5,000
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Retained Earnings, beginning of year
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17,000
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Common Stock
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40,000
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Service Revenue
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53,000
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Wages Expense
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8,000
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Advertising Expense
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5,000
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Rent Expense
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10,000
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Use the information above to answer the following question. What is the amount of net income on the income statement for the year?
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$30,000.
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$38,000.
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$88,000.
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$47,000.
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Question 15
Which of the following statements about financial statement information is correct?
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If a company has total revenues of $80,000, total expenses of $50,000 and dividends of $10,000, they will have net income of $20,000.
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A company with total stockholders' equity of $45,000 and total assets of $75,000 must have total liabilities of $120,000.
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A company with liabilities of $80,000 and stockholders' equity of $50,000 will have Assets of $30,000.
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A company with total stockholders' equity of $120,000 and common stock of $75,000 must have total retained earnings of $45,000.
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Question 16
The following accounts are taken from the December 31, Year 4 financial statements of a company.
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Accounts Payable
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$2,075
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Accounts Receivable
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800
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Selling & Administrative Expenses
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2,500
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Cash
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2,200
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Common Stock
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2,000
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Dividends
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1,900
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Income Tax Expense
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400
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Interest Expense
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75
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Other Expenses
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500
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Notes Payable
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5,000
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Other Assets
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2,500
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Other Liabilities
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3,000
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Other Operating Expenses
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2,000
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Other Revenue
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300
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Property and Equipment
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11,000
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Retained Earnings, December 31, Year 3
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4,800
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Salaries and Wages Expense
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3,000
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Supplies
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300
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Service Revenue
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10,000
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Use the information above to answer the following question. What is the amount of net income for Year 4?
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$3,825.
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$1,825.
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$10,300.
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$5,625.
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Question 17
Generally accepted accounting principles (GAAP) were (are) established by:
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an Italian monk in 1494.
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the U.S. Congress and the SEC.
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the PCAOB.
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the FASB on an ongoing basis.
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Question 18
Net income appears on which of the following financial statements?
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Balance sheet and income statement
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Balance sheet and statement of retained earnings
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Balance sheet and statement of cash flows
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Income statement and statement of retained earnings
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Question 19
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GIL'S FISHING EQUIPMENT, INC.
Statement of Cash Flows
For the Year Ended December 31, Year 3
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Cash flows from operating activities
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Cash collected from customers
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A
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$12,000
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Cash paid to suppliers and employees
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B
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(7,000)
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Cash paid for other operating activities
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C
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Unknown
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Net cash flow from operating activities
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D
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$5,000
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Cash flows from investing activities
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Cash paid to purchase equipment and other assets
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E
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(45,000)
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Cash received from selling equipment and other assets
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F
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Unknown
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Net cash flow from (used by) investing activities
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G
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Unknown
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Cash flows from financing activities
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Cash paid on notes payable
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H
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(32,000)
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Cash paid for dividends
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I
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(10,000)
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Net cash flow from (used by) financing activities
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J
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Unknown
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Net change in cash during the year
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K
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37,000
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Beginning cash, January 1, Year 3
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L
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Unknown
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Ending cash, December 31, Year 3
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M
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122,000
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Use the information above to answer the following question. What amount is represented by letter L in the statement of cash flows?
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$159,000
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$85,000
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($85,000)
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($159,000)
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Question 20
The Whackem-Smackem Software Company sold $11 million of computer games in its first year of operations. The company received payments of $7.5 million for these computer games. The company's income statement would report:
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Accounts Receivable of $3.5 million.
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expenses of $3.5 million.
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Sales Revenue of $7.5 million.
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Sales Revenue of $11 million.
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