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.
