Chapter 1 MCQ

Nexis had beginning equity of $86,000; revenues of $132,000, and expenses of $89,400. The company had no other transactions impacting equity. Calculate the ending equity.

$128,600.

Lito Company had cash inflows from operating activities of $33,000; cash outflows from investing activities of $28,000, and cash outflows from financing activities of $18,000. Calculate the net increase or decrease in cash.

$13,000 decrease.

Determine the net income of a company for which the following information is available for the month of September. Service revenue $ 302,000 Rent expense 49,000 Utilities expense 3,300 Salaries expense 82,000

$167,700.

A company is considering purchasing a parcel of land that was originally acquired by the seller for $101,000. While the land is currently offered for sale at $182,000, it is considered by the purchaser as easily being worth $172,000, and is finally purchased for $169,000, the land should be recorded in the purchaser's books at:

$169,000

Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 199,000 Interest expense 29,000 Rent expense 39,000 Consulting revenue 476,000

$209,000.

If assets are $430,000 and liabilities are $201,000, then equity equals:

$229,000.

Charlie's Chocolates' has accounts receivable of $58,000 and accounts payable of $24,000. The company has revenues of $91,000 and expenses of $68,000. Calculate its net income.

$23,000.

If assets are $387,000 and equity is $131,000, then liabilities are:

$256,000.

Use the following information for Meeker Corporation to determine the amount of equity to report. Cash$ 78,000 Buildings 129,500 Land 215,800 Liabilities 135,000

$288,300.

Zinc has beginning equity of $267,000, total revenues of $67,000, and total expenses of $45,000. The company has no other transactions impacting equity. Its ending equity is:

$289,000.

Darden has beginning equity of $281,000, total revenues of $67,000, and total expenses of $29,000. The company has no other transactions impacting equity. The company's ending equity is:

$319,000.

On August 31 of the current year, the assets and liabilities of Gladstone, Incorporated are as follows: Cash $30,900; Supplies, $670; Equipment, $10,600; Accounts Payable, $9,300. What is the amount of equity as of August 31 of the current year?

$32,870.

Use the following information as of December 31 to determine equity. Cash $ 70,000 Buildings 188,000 Equipment 219,000 Liabilities 154,000

$323,000.

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.

On May 31 of the current year, the assets and liabilities of Riser, Incorporated 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 equity as of May 31 of the current year?

$37,200.

Zippy had cash inflows from operating activities of $68,500; cash outflows from investing activities of $53,000; and cash inflows from financing activities of $31,000. The net change in cash was:

$46,500 increase.

A company's balance sheet shows cash of $29,000, accounts receivable of $35,000, equipment of $60,000, and equity of $77,000. What is the amount of liabilities?

$47,000.

I f equity is $298,000 and liabilities are $191,000, then assets equal:

$489,000.

The assets of a company total $726,000; the liabilities, $213,000. What is the amount of equity?

$513,000.

If assets are $90,000 and liabilities are $28,800, then equity equals:

$61,200.

A company's balance sheet shows: Cash $30,000, Accounts receivable $20,000, Office equipment $54,000, and Accounts payable $21,000. What is the amount of total equity?

$83,000.

Doc's Ribhouse had beginning equity of $65,500; net income of $23,000. The company has no other transactions impacting equity. Calculate the ending equity.

$88,500.

Cruz Company had revenues of $114,000 and expenses of $67,000 for the year. Its assets at the beginning of the year were $417,000. At the end of the year, assets were worth $467,000. Calculate its return on assets.

10.6%.

Speedy Company has net income of $31,955, and assets at the beginning of the year of $213,000. Assets at the end of the year total $259,000. Compute its return on assets.

13.5%.

Cage Company had net income of $420 million and average total assets of $2,180 million. Its return on assets (ROA) is:

19.3%.

Chou Company has a net income of $57,000, assets at the beginning of the year are $264,000 and assets at the end of the year are $314,000. Compute its return on assets.

19.7%.

Flitter reported net income of $25,000 for the past year. At the beginning of the year the company had $215,000 in assets and $65,000 in liabilities. By year end, assets had increased to $315,000 and liabilities were $90,000. Calculate its return on assets:

9.4%.

Rush Company had net income of $180 million and average total assets of $1,910 million. Its return on assets (ROA) is:

9.4%.

Saddleback Company paid off $41,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Assets decrease $41,000; liabilities decrease $41,000.

If a company receives $13,500 from a client for services provided, the effect on the accounting equation would be:

Assets increase $13,500 and equity increases $13,500.

If a company purchases equipment costing $6,000 on credit, the effect on the accounting equation would be:

Assets increase $6,000 and liabilities increase $6,000

Echo Company has assets of $632,000, liabilities of $266,000, and equity of $366,000. It buys office equipment on credit for $91,000. What would be the effects of this transaction on the accounting equation?

Assets increase by $91,000 and liabilities increase by $91,000.

If the liabilities of a company increased $98,000 during a period of time and equity in the company decreased $31,000 during the same period, what was the effect on the assets?

Assets would have increased $67,000

If the assets of a business increased $119,000 during a period of time and its liabilities increased $82,000 during the same period, equity in the business must have:

Increased $37,000.

If the liabilities of a business increased $95,000 during a period of time and equity in the business decreased $40,000 during the same period, the assets of the business must have:

Increased $55,000.

If a company uses $1,350 of its cash to purchase supplies, the effect on the accounting equation would be:

One asset increases $1,350 and another asset decreases $1,350, causing no effect.

If Dallas Company billed a client for $25,000 of consulting work completed, the accounts receivable asset increases by $25,000 and:

Revenue increases $25,000.