Chapter 1: Quiz (80%)

If the liabilities of a business increased $81,000 during a period of time and the stockholders' equity in the business decreased $33,000 during the same period, the assets of the business must have:

Increased $48,000

Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense: $182,000 Interest expense: $12,000 Rent expense: $22,000 Consulting revenue: $408,000

$192,000

A company's balance sheet shows: cash $50,000, accounts receivable $30,000, office equipment $64,000, and accounts payable $31,000. What is the amount of stockholders' equity?

$113,000

If assets are $108,000 and liabilities are $37,000, then equity equals:

$145,000

If a company is considering the purchase of a parcel of land that was acquired by the seller for $103,000 is offered for sale at $186,000, is assessed for tax purposes at $113,000, is considered by the purchaser as easily being worth $176,000, and is purchased for $173,000, the land should be recorded in the purchaser's books at:

$173,000

Zippy had cash inflows from operations of $80,500; cash outflows from investing activities of $65,000; and cash inflows from financing of $43,000. The net change in cash was:

$188,500

If equity is $389,000 and liabilities are $185,000, then assets equal:

$204,000

If assets are $401,000 and equity is $138,000, then liabilities are:

$263,000

Use the following information for Meeker Corp. to determine the amount of equity to report. Cash: $76,000 Buildings: $129,000 Land: $214,600 Liabilities: $134,000

$285,600

Zapper has beginning equity of $271,000, net income of $58,000, dividends paid of $47,000 and stockholder investments of $13,000. Its ending equity is:

$295,000

A company reported total equity of $169,000 at the beginning of the year. The company reported $234,000 in revenues and $177,000 in expenses for the year. Liabilities at the end of the year totaled $104,000. What are the total assets of the company at the end of the year?

$330,000

Charlie's Chocolates' had stock issuances of $80,000 and dividends of $35,000. The company has revenues of $113,000 and expenses of $79,000. Calculate its net income.

$34,000

On May 31 of the current year, the assets and liabilities of Riser, Inc. are as follows: Cash $25,500; Accounts Receivable, $7,800; Supplies, $1,150; Equipment, $12,600; Accounts Payable, $9,850. What is the amount of stockholders' equity as of May 31 of the current year?

$37,200

Use the following information as of December 31 to determine equity. Cash: $65,000 Buildings: $ 183,000 Equipment:$214,000 Liabilities: $149,000

$462,000

Dawson Electronic Services had revenues of $116,000 and expenses of $68,000 for the year. Its assets at the beginning of the year were $418,000. At the end of the year assets were worth $468,000. Calculate its return on assets.

10.8%

Flitter reported net income of $24,500 for the past year. At the beginning of the year the company had $214,000 in assets and $64,000 in liabilities. By the end of the year, assets had increased to $314,000 and liabilities were $89,000. Calculate its return on assets:

9.3%

Rushing had income of $180 million and average total assets of $1,910 million. Its return on assets is:

9.4%

Speedy has net income of $21,955, and assets at the beginning of the year of $203,000. Assets at the end of the year total $249,000. Compute its return on assets.

9.7%

If the liabilities of a company increased $114,000 during a period of time and equity in the company decreased $39,000 during the same period, what was the effect on the assets?

Assets would have increased $75,000

If Houston Company billed a client for $24,000 of consulting work completed, the accounts receivable asset increases by $24,000 and:

Revenue increases $24,000