Accounting 209 Test 1
What annual report would the company's total revenue for the period
Income statement
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Net change in cash
Net change in cash is on the statement of cash flows (SCF)
True or False: On November 1, a company paid $6,000 for 6 months of insurance, to cover the period November 1 - April 30. The company's December 31st balance sheet should include Prepaid Insurance of $2,000.
false
A major purpose of closing entries is to: Select one: a. zero out the Retained Earnings account b. adjust the asset accounts to their current balances c. transfer the net income and dividends of the period to Retained Earnings d. close out the accounts payable account e. none of the above
c. transfer the net income and dividends of the period to Retained Earnings
Which of the following accounts would show a balance in a post-closing trial balance? Select one: a. Dividends b. Rent Expense c. Sales Revenue d. Accumulated Depreciation e. None of the above
d. Accumulated Depreciation
Is accounts receivable debit or credit?
debit
Is administrative expenses debit or credit?
debit
Is cash debit or credit?
debit
Is dividends credit or debit?
debit
The stockholders' equity of a corporation that has assets of $600,000 and liabilities of $306,000.
$600,000-$306,000= $294,000
What annual report would the sources of cash during the period
Statement of cash flows
Income stamens include
Total Revenue - Total Expenses = Net Income
Paul Company has total liabilities of $170,000 and total stockholders' equity of $105,000. How much total assets does the company have?
$275,000
Land is an asset or liability?
Asset
What annual report would the company's total liabilities
Balance sheet
Stockholders equity on a balance sheet includes
Common stock and retained earnings
True or False: All accounts must be adjusted at the end of the period
false
Assets equation
liabilities + stockholders equity
True or False: Every adjusting entry will affect both the Income Statement and the Balance Sheet.
true
Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. If during the year total assets increased by $15,000 and total liabilities increased by $40,000, what is the end-of-year total stockholders' equity?
$115,000
Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. If during the year total assets increased by $60,000 and total liabilities decreased by $5,000, what is the end-of-year total stockholders' equity?
$205,000
Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. If during the year total liabilities increased by $40,000 and total stockholders' equity increased by $35,000, what are the end-of-year total assets?
$395,000
Hawkins Company has total assets of $150,000 and total liabilities of $110,000. How much is the company's total stockholders' equity?
$40,000
The net income reported on the ABC Co.'s income statement is $150,000. However, adjusting entries were not recorded at the end of the period for depreciation on fixed assets of $8,000, supplies used of $2,000, unearned gift card revenue EARNED during the period of $6,000, and for accrued salaries of $1,200. The correct amount of net income is
150,000 - 8,000 - 2,000 + 6,000 - 1,2000 --------- = $144,800
Accounts RECEIVABLE is an asset or liability?
Asset
Cash is an asset or liability?
Asset
Equipment is an asset or liability?
Asset
Supplies is an asset or liability?
Asset
Stockholder's equity equation
Assets - Liabilities
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Assets
Assets are on the Balance Sheet (BS)
The assets of a corporation that has liabilities of $250,000, common stock of $125,000, and retained earnings of $85,000.
Assets= $250,000+($125,000+$85000)=$435,000. [equity=common stock+retained earnings].
What annual report would an opinion about whether the financial statements are fairly stated
Auditor's report
Aggie Fitness began business in College Station, TX on June 1, 2018. At that time, the company collected $6,000 in advance payments from customers for 12-month gym memberships. At December 31, 2018, after the adjusting entries are recorded and posted, the balances in Unearned Revenue and Membership Revenue should be, respectively
Balance in unearned revenue account = 6000*5/12 = $2500 Balance in membership revenue = 6000*7/12 = $3500 So answer is b) $2500, $3500
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Cash flow from investing activities
Cash flow from investing activities are on the statement of cash flows (SCF)
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Expenses
Expenses is on the income statement (IS)
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Liabilities
Liabilities are on the balance;ance sheet (BS)
At the end of the fiscal year, the usual adjusting entry to update Prepaid Rent for the portion of the benefit that was used up / expired was accidentally omitted.
Net Income for the year will be overstated.
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Net income
Net income is on the income statement (IS) and the statement of stockholders' equity (SSE)
What annual report would the information regarding accounting methods used
Notes to the financial statements
The following information appears in the records of Becker Corporation at year-end: Accounts Receivable $32,000 Retained Earnings $ ? Accounts Payable $12,000 Supplies $8,000 Cash $7,000 Equipment, net $145,000 Common Stock $115,000 a. Calculate the balance in Retained Earnings at year-end.
Retained earnings = Total assets - Total liabilities - Common stock (Cash+Accounts Receivable+Supplies+Equipment)-(Accounts Payable)-(Common Stock) (7,000+32,000+8,000+145,000)-(12,000)-(115,000) $65,000
What annual report would the amount of dividends that are distributed to a company's stockholders
Statement of Stockholders' Equity
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Stockholders' equity
Stockholder equity is on the balance sheet (BS) and the statement of stockholder's equity (SSE)
Is accounts payable debit or credit?
credit
Is common stock credit or debit?
credit
Is sales revenue debit or credit?
credit
Is equipment debit or credit?
debit
Is utilities expenses debit or credit?
debit
True or False: Prepaid Insurance and Unearned Revenue are accounts that generally do not need to be adjusted at the end of the accounting period.
false
If Black Company's total assets increased by $35,000 during the year, and its total liabilities decreased during the same year by $20,000, what was the change in the company's total stockholders' equity?
$55,000 increase
Retained Earnings Equation
Retained earnings = Total assets - Total liabilities - Common stock
The following information appears in the records of Becker Corporation at year-end: Accounts Receivable $32,000 Retained Earnings $ ? Accounts Payable $12,000 Supplies $8,000 Cash $7,000 Equipment, net $145,000 Common Stock $115,000 b. If the amount of the retained earnings at the beginning of the year was $38,000 and $13,000 in dividends is paid during the year, calculate net income for the year.
Retained earnings at the end of the year = retained earnings at the beginning of the year + net income - dividends Therefore net income = Retained earnings at the end - retained earnings at the beginning + dividends 65,000-38,000+13,000
Identify the financial statement (or statements) in which each of the following items would appear: income statement (IS), statement of stockholders' equity (SSE), balance sheet (BS), or statement of cash flows (SCF). Revenues
Revenues are on the income statement (IS)
Dallas Company's current ratio is 4 to 3. The company is negotiating a loan, and the company's management understands that a higher (i.e., better) current ratio will reduce the company's cost of borrowing (interest rate). Which of the following transactions will improve Houston Company's current ratio? Select one: a. making a payment on a long-term debt b. using cash to pay current liabilities c. purchasing inventory on account d. collecting on some of the company's accounts receivable e. none of the above
b. using cash to pay current liabilities
On a balance sheet assets are equal to:
liabilities + stockholder equity
Accounts PAYABLE is an asset or liability?
liability
Notes payable is an asset or liability?
liability
Stockholders Equity is an asset or liability?
liability