ACCT chap 2

At September 1, 2017, Oriole Company reported a cash balance of $156800. During the month, Oriole collected cash of $67200 and made disbursements of $112000. At September 30, 2017, the cash balance is

112,000 debit

Whispering Winds Corp. began the year with $115900 in its Common Stock account and a debit balance in Retained Earnings of $49700. During the year, the company earned net income of $24800 and declared and paid $8300 of dividends. In addition, the company sold additional common stock amounting to $30400. Based on this information, what should the transaction analysis show for the ending total of all stockholders' equity accounts?

113,100

Ayayai Corp. has assets of $4424000, common stock of $1086000, and retained earnings of $626000. What are the creditors' claims on their assets?

2,712,000

Use the following data to calculate the current ratio. Novak Corp. Balance Sheet December 31, 2017 Cash $129700 Accounts payable $164000 Accounts receivable 120300 Salaries and wages payable 32400 Inventory 201800 Mortgage payable 266200 Prepaid insurance 86500 Total liabilities $462600 Stock Investments (long-term) 251000 Land 286000 Buildings $336500 Common stock $364500 Less: Accumulated depreciation (59900) 276600 Retained earnings 737500 Trademarks 212700 Total stockholders' equity $1102000 Total assets $1564600 Total liabilities and stockholders' equity $1564600

2.74

Use the following data to calculate the current ratio. Concord Corporation Balance Sheet December 31, 2017 Cash $128300 Accounts payable $156000 Accounts receivable 120000 Salaries and wages payable 34500 Inventory 213900 Mortgage payable 273400 Prepaid insurance 89000 Total liabilities $463900 Stock Investments (long-term) 251000 Land 289500 Buildings $338000 Common stock $363000 Less: Accumulated depreciation (64800) 273200 Retained earnings 751300 Trademarks 213300 Total stockholders' equity $1114300 Total assets $1578200 Total liabilities and stockholders' equity $1578200

2.89:1

Bramble Corp. has assets of $4355000, common stock of $1023000, and retained earnings of $688000. What are the creditors' claims on their assets? 1.$4828000 2.$2644000 3.$3974000 4.$1958000

2644000

Sheffield Corp. showed the following balances at the end of its first year: Cash $11660 Prepaid insurance 530 Accounts receivable 2650 Accounts payable 2120 Notes payable 3180 Common stock 5300 Dividends 530 Revenues 23320 Expenses 13250 What amount did Sheffield Corp. show as total credits?

33,920

Use the following data to determine the total dollar amount of assets to be classified as current assets. Bramble Corp. Balance Sheet December 31, 2017 Cash $72000 Accounts payable $130000 Accounts receivable 97500 Salaries and wages payable 16500 Inventory 144500 Mortgage payable 161500 Prepaid insurance 77500 Total liabilities $308000 Stock Investments (long-term) 196000 Land 192000 Buildings $227500 Common stock $257000 Less: Accumulated depreciation (68500) 159000 Retained earnings 482000 Trademarks 108500 Total stockholders' equity $739000 Total assets $1047000 Total liabilities and stockholders' equity $1047000

391,500

Use the following data to determine the total dollar amount of assets to be classified as current assets. Concord Corporation Balance Sheet December 31, 2017 Cash $73500 Accounts payable $125000 Accounts receivable 100500 Salaries and wages payable 15600 Inventory 147500 Mortgage payable 171000 Prepaid insurance 75500 Total liabilities $311600 Stock Investments (long-term) 192500 Land 188500 Buildings $215500 Common stock $251900 Less: Accumulated depreciation (53500) 162000 Retained earnings 490000 Trademarks 113500 Total stockholders' equity $741900 Total assets $1053500 Total liabilities and stockholders' equity $1053500

397,000

Windsor, Inc. has current assets of $1750000 million and current liabilities of $710000. If they pay $373000 of their accounts payable what will their new current ratio be?

4.1:1

Pharoah Company showed the following balances at the end of its first year: Cash $17360 Prepaid insurance 870 Accounts receivable 4340 Accounts payable 3470 Notes payable 5210 Common stock 6700 Dividends 870 Revenues 35960 Expenses 21700 What amount did Pharoah Company show as total credits?

51,340

Kingbird, Inc. started the year with $68400 in its Common Stock account and a credit balance in Retained Earnings of $50200. During the year, the company earned net income of $54700 and declared and paid $22800 of dividends. In addition, the company sold additional common stock amounting to $31900. As a result, the amount of its retained earnings at the end of the year would be

82,100

Which one of the following represents the expanded basic accounting equation? 1.Assets = Liabilities + Common Stock + Dividends - Revenue - Expenses 2.Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues 3.Assets - Liabilities - Dividends = Common Stock + Revenues - Expenses 4.Assets = Revenues + Expenses - Liabilities

Assets + Dividends + Expenses = Liabilities + Common Stock + Revenues

The agency of the United States Government that oversees the U.S. financial markets is the? 1.Security Exchange Commission. 2.International Auditing Standards Committee. 3.Internal Revenue Service. 4.Financial Accounting Standards Board.

Security exchange commission

Which of the following is not classified properly as a current asset? 1.Debt investments. 2.Supplies. 3.A fund to be used to purchase a building within the next year. 4.A receivable from the sale of an asset to be collected in two years.

a receivable from the sale of an asset to be collected in two years

Different companies using the same accounting principles is an application of 1.full disclosure. 2.comparability. 3.materiality. 4.consistency.

comparability

Accounting information is relevant to business decisions because it 1.confirms prior expectations. 2.is neutral in its representations. 3.has been verified by external audit. 4 is prepared on an annual basis.

confirms prior expectations

An accountant has debited an asset account for $1160 and credited a liability account for $580. What can be done to complete the recording of the transaction? 1.Debit another asset account for $580. 2.Credit a different asset account for $580. 3.Nothing further must be done. 4.Debit a stockholders' equity account for $580

credit a different asset account for 580

In a classified balance sheet, assets are usually classified as? 1.current assets; long-term investments; property, plant, and equipment; and intangible assets. 2.current assets; long-term assets; property, plant, and equipment; and intangible assets. 3.current assets; long-term investments; property, plant, and equipment; and common stocks. 4.current assets; long-term investments; tangible assets; and intangible assets.

current assets; long-term investments; property, plant, and equipment; and intangible assets.

Liabilities are generally classified on a balance sheet as 1.current liabilities and long-term liabilities. 2.tangible liabilities and intangible liabilities. 3.small liabilities and large liabilities. 4.present liabilities and future liabilities.

current liabilities and long-term liabilities

Liabilities are generally classified on a balance sheet as 1.tangible liabilities and intangible liabilities. 2.current liabilities and long-term liabilities. 3.small liabilities and large liabilities. 4.present liabilities and future liabilities.

current liabilities and long-term liabilities Use the following data to determine the total dollar amount of assets to be classified as current assets.

Current assets divided by current liabilities is known as the 1. capital structure. 2.working capital. 3. current ratio. 4.profit margin.

current ratio

When a company receives a utility bill but will not pay it right away, it should 1.debit Accounts Payable and credit Utilities Expense. 2.debit Utilities Expense and credit Accounts Payable. 3.make no entry until the bill is paid. 4.debit Utilities Expense and credit Accounts Receivable.

debit Utilities Expense and credit Accounts Payable.

Equipment costing $16000 is purchased by paying $4000 cash and signing a note payable for the remainder. The journal entry should include a 1.debit to Cash. 2.credit to Notes Payable. 3.credit to Notes Receivable. 4.credit to Equipment.

debit to notes payable

When a company has performed a service but has not yet received payment, it 1. debits revenue from services and credits accounts payable. 2.makes no entry until the cash is received. 3.debits accounts receivable and credits service revenue. 4.debits revenue from services and credits accounts receivable.

debits accounts receivable and credits service revenue

A company that receives money in advance of performing a service? 1.debits cash and credits accounts receivable. 2.debits unearned fees and credits accounts payable. 3.debits cash and credits unearned service revenue. 4.debits cash and credits prepaid services.

debits cash and credits unearned service revenue

A measure of profitability is the 1.earnings per share. 2.working capital. 3.current ratio. 4debt to assets ratio.

earnings per share

The Dividends account 1.is not a proper subdivision of stockholders' equity. 2.appears on the income statement along with the expenses of the business. 3.must show transactions every accounting period. 4.is increased with debits and decreased with credits.

is increased with debits and decreased with credits

After transaction information has been recorded in the journal, it is transferred to the 1.ledger. 2.general journal. 3.trial balance. 4.income statement.

ledger

Garrison Company prepares quarterly reports, which it distributes to all stockholders and other entities that rely on its accounting information. Which of the following is the best term for the key assumption in financial reporting that Garrison is following? 1.Economic entity assumption 2.Periodicity assumption 3.Going concern assumption 4.Monetary unit assumption

periodicity assumption

Which of the following accounts is increased with a credit? 1.Supplies 2.Sales Revenue 3.Supplies expense 4.Dividends

sales revenue

When a service has been performed, but no cash has been received, which of the following statements is true? 1.The entry includes a debit to accounts receivable. 2.No journal entry is made. 3.The entry includes a debit to accounts payable. 4.The entry includes a credit to unearned revenue.

the entry includes a debit to accounts receivable

If accounting information has relevance, it is useful in making predictions about 1.foreign currency exchange rates. 2.the future events of a company. 3.new accounting principles. 4.future IRS audits.

the future events of a company

Information presented in a clear and concise fashion so that users can comprehend its meaning is an application of 1.timeliness. 2. verifiability. 3.consistency. 4.understandability.

understandability