Quiz 1

Inventory

Asset

Will I get a raise this year?

Employees

Cash

asset

Supplies

asset

Accounts Receivable

assets

Retained Earnings

equity

Utilities Expense

expense

Accounts Payable

liabilities

Notes Payable

liability

Fundamental Accounting Equation

Assets = Liabilities + Equity

The effectiveness of the last advertising campaign.

Management

The exact amount of profit on each product of the company.

Management

Which of the following is not a form of a business entity?

Financing, Investing, Operating Cash, Credit, Non-cash Financing, Credit, Operating Financing, Management, Operating Correct: Financing, Investing, Operating

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?

$2,000,000

The prospects for future dividend payments.

Investors

Sales

Revenue

Common Stock

Equity

Interest Income

Revenues

Which of the following best describes the term "expenses"?

The cost of assets used in the investing activities of a business. The cost of selling goods or services. The amount of interest or claim that the owners have in the business. The future economic resources of a business entity. Correct: The cost of selling goods or services.

Bay Camera The 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 expense 20,000 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?

$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?

$850,000

Which financial statement would you refer to in order to determine how much resources (assets) the company owned?

Balance Sheet Statement of Retained Earnings Income Statement Statement of Cash Flows Correct: Balance Sheet

The profitability of the company based upon the Internal Revenue Code (i.e. tax laws).

Government

The ability of the company to pay its debts as they become due.

Supplier and Banker

"Revenues" are best described as

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. Correct: earnings that result from delivering products or services to customers.