ACCT. 1210-JWU
Which of the following best describes the term "expenses"? Answers: The cost of assets used in the investing activities of a business. The amount of interest or claim that the owners have in the business. The future economic resources of a business entity. The cost of selling goods or services.
The cost of selling goods or services.
Revenues" are best described as Answers: decreases in assets resulting from the sale of goods or services. earnings that result from delivering products or services to customers. assets used or consumed in the sale of products or services. an increase in the financing activities.
earnings that result from delivering products or services to customers.
If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity? Answers: $ 800,000 $2,000,000 $3,800,000 $1,800,000
$2,000,000
Bay CameraThe company reported the following items on its financial statements for the year ended December 31, 2013: Sales$780,000 Cost of Sales $700,000 Selling, general & administrative expense20,000 Other Expense 15,000 Dividends 5,000 Income Tax Expense 12,500 Refer to Bay Camera. What is the company's Net Income for the current year? Answers: $22,500 $32,500 $42,500 $80,000
$32,500
Bargain Spot Fabrics This company's end-of-year balance sheet consisted of the following amounts: Cash $ 75,000 Accounts Receivable $250,000 Property, plant & equipment 350,000 Long-term debt 200,000 Common Stock 500,000 Accounts payable 100,000 Retained earnings ? Inventory 175,000 Refer to Bargain Spot Fabrics. What amount should the company report on its Balance Sheet for Total Assets? Answers: $550,000 $775,000 $850,000 $950,000
$850,000
Which of the following is not a form of a business entity? Answers: sole proprietorship partnership cooperative corporation
cooperative
Several items from the financial statements of Fireside Tires are listed. Use the following choices to identify the type of account for each item listed. (Choices may be used more than once.) Inventory Sales Accounts payable Interest Income Utilities expense Accounts receivable Common stock Notes payable Cash Retained earnings Supplies
A. Assets D. Revenues B. Liabilities D. Revenues E. Expense A. Assets C. Equity B. Liabilities A. Assets C. Equity A. Assets
Which one of the following is a correct fundamental accounting equation? Answers: Assets + Liabilities = Equity Assets + Retained Earnings = Equity Assets + Equity = Liabilities Assets = Liabilities + Equity
Assets = Liabilities + Equity
Which financial statement would you refer to in order to determine how much resources (assets) the company owned? Answers: Balance Sheet Statement of Retained Earnings Income Statement Statement of Cash Flows
Balance Sheet
Provided is a list of important users of accounting information. Also provided are descriptions of a major need for accounting information that may be experienced by the various users. Identify the one user group that is most likely to have the need described. (Choices may be used more than once.) Questions: The prospects for future dividend payments. Will I get a raise this year? The profitability of the company based upon the Internal Revenue Code (i.e. tax laws). The effectiveness of the last advertising campaign. The exact amount of profit on each product of the company. The ability of the company to pay its debts as they become due.
D. Investors E. Employees B. Government A. Management A. Management C. Supplier and Banker
Businesses engage in which of the following three main activity categories? Answers: Financing, Investing, Operating Cash, Credit, Noncash Financing, Credit, Operating Financing, Management, Operating
Financing, Investing, Operating