Provide an explanation for each of the follow asset accounts. Account Name Explanation Accounts Receivable Prepaid Expense Notes Receivable What will be an ideal response ANSWER Account Name Explanation Accounts Receivable A customer’s promise to pay in the future for services or goods sold. Often described as “On Account.” Prepaid Expense A payment of an […]
Which of the following financial statements lists the entity’s assets, liabilities, and stockholders’ equity as of a specific date? A) Balance sheet B) Statement of retained earnings C) Income statement D) Statement of cash flows ANSWER A
Following is an extract of account balances of Wilson Mowing Services as of December 31 of the first year of operation Accounts Receivable $4,000 Accounts Payable 7,000 Salaries Expense 5,000 Repairs Expense 500 Truck 8,000 Equipment 8,000 Notes Payable 8,100 Cash 7,300 Supplies Expense 1,500 Service Revenue 31,000 Gasoline Expense 3,900 Salaries Payable 100 What […]
Following is a list of account balances of Surburban Lawn Services as of December 31 of the first year of operation Accounts Receivable $4,000 Accounts Payable 6,000 Salaries Expense 7,000 Repairs Expense 600 Truck 10,000 Equipment 9,000 Notes Payable 8,300 Cash 7,200 Supplies Expense 1,500 Service Revenue 31,000 Gasoline Expense 3,100 Salaries Payable 300 What […]
Financial statements are prepared after an entity’s transactions are analyzed and recorded. Which of the following reports is one of the required financial statements? A) Statement of cash flows B) Statement of return on assets C) Statement of dividends D) Expense statement ANSWER A
Felix Company has just completed operations for the year ended December 31, 2016. This is the second year of operations for the company. The following data have been assembled for the business Accounts Payable $ 12,200 Office Expense $ 6,500 Accounts Receivable 14,500 Rent Expense 9,600 Cash 8,200 Retained Earnings, Jan. 1, 2016 8,300 Common […]
Which of the following financial statements reports cash receipts and cash payments during a period of time? A) Statement of cash flows B) Balance sheet C) Cash receipts budget D) Statement of retained earnings ANSWER A
Which of the following financial statements reports an increase or decrease in net cash during the time period covered? A) Income statement B) Statement of retained earnings C) Statement of cash flows D) Cash budget ANSWER C
Which of the following will be categorized as an operating activity on the statement of cash flows? A) Cash received by selling old equipment B) Cash paid for purchase of new machinery C) Cash paid for purchase of office supplies D) Cash received from issuance of shares of common stock ANSWER C
Which of the following will be categorized as a financing activity on the statement of cash flows? A) Cash received by selling old equipment B) Cash paid for purchase of new machinery C) Cash paid for purchase of office supplies D) Cash received from issuance of shares of common stock ANSWER D
