ch 1 quiz

If assets are $299,000 and liabilities are $191,000, then equity equals:

$108,000

If assets are $399,000 and equity is $137,000, then liabilities are:

$262,000

If a company is considering the purchase of a parcel of land that was acquired by the seller for $98,000 is offered for sale at $176,000, is assessed for tax purposes at $108,000, is considered by the purchaser as easily being worth $166,000, and is purchased for $163,000, the land should be recorded in the purchaser's books at:

$163,000

Determine the net income of a company for which the following information is available Employee salaries expense: $190,000 Interest expense: $20,000 Rent expense: $30,000 Consulting Revenue: $440,000 Expenses: $190,000+$20,000 + $30,000 = $240,000 Net Income: $440,000 - $240,000 = $200,000

$200,000

Use the following information for Meeker Corp. to determine the amount of equity to report. cash $58,000 buildings $118,500 land $199,500 Assets= $58,000+118,500+199,500 Equity= 376,000-124,500

$251,500

Use the following information as of December 31 to determine equity. cash $71,000 equipment $220,000 buildings $189,000 Assets = $71,000 +$220,000 +$189,000 = $480,000 Equity = $480,000 - $155,000 = $325,000

$325,000

A company's balance sheet shows: cash $27,000, accounts receivable $33,000, equipment $56,000, and equity $75,000. What is the amount of liabilities? Assets= 27,000+33,000+56,000 =116,000 equity=75,000 liability=116,000-75,000

$41,000

The assets of a company total $738,000; the liabilities, $219,000. What is the amount of equity?

$519,000

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

$631,000

If assets are $105,000 and liabilities are $35,000, then equity equals:

$70,000

Rushing had income of $207 million and average total assets of $2,000 million. Its return on assets is:

10.4%

Cage Company had income of $353 million and average total assets of $2,010 million. Its return on assets (ROA) is:

17.6%

If a company purchases equipment costing $3,500 on credit, the effect on the accounting equation would be:

Assets increase $3,500 and liabilities increase $3,500.

Alpha Company has assets of $640,000, liabilities of $270,000, and equity of $370,000. It buys office equipment on credit for $95,000. What would be the effects of this transaction on the accounting equation?

Assets increase by $95,000 and liabilities increase by $95,000.

Saddleback Company paid off $42,000 of its accounts payable in cash. What would be the effects of this transaction on the accounting equation?

Assets, $42,000 decrease; liabilities, $42,000 decrease; equity, no effect.

If a company uses $1,390 of its cash to purchase supplies, the effect on the accounting equation would be:

One asset increases $1,390 and another asset decreases $1,390, causing no effect.

If Houston Company billed a client for $15,000 of consulting work completed, the accounts receivable asset increases by $15,000 and:

Revenue increases $15,000

If a company receives $13,100 from a stockholder, the effect on the accounting equation would be:

liabilities increase $13,100 and equity decreases $13,100