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
Date: September 2nd, 2020
Which of the following is the correct order of preparation of financial statements? A) Income statement ↑ statement of retained earnings ↑ balance sheet ↑ statement of cash flows B) Statement of retained earnings ↑ balance sheet ↑ income statement ↑ statement of cash flows C) Balance sheet ↑ statement of retained earnings ↑ income […]
Date: September 2nd, 2020
Which of the following appears on both the income statement and statement of retained earnings? A) Ending stockholders’ equity B) Total revenues C) Net income D) Dividends ANSWER C
Date: September 2nd, 2020
Prepare an income statement and a statement of retained earnings for the month of June. Also, prepare a balance sheet at June 30 The transactions of Magna Designer Corporation for the first month of their operations are as follows: †¢ On June 1, 2017, Magna Designer Corporation received $25,000 cash from its stockholders and […]
Date: September 2nd, 2020
The income statement also is called the statement of financial position. Indicate whether the statement is true or false ANSWER FALSE
Date: September 2nd, 2020
The income statement presents a summary of an entity’s revenues and expenses for a period of time. Which of the following statements is true of an income statement? A) There is net income when total expenses are greater than total revenues. B) There is a net loss when total expenses are less than total revenue. […]
Date: September 2nd, 2020
Which of the following financial statements reports expenses in decreasing order of their amounts, by stating the largest expense first? A) Statement of cash flows B) Income statement C) Statement of retained earnings D) Balance sheet ANSWER B
Date: September 2nd, 2020
Following is a list of account balances of Morris Mowing Services as of December 31 of the first year of operations Accounts Receivable $6,000 Accounts Payable 7,000 Salaries Expense 6,000 Repairs Expense 900 Truck 12,000 Equipment 9,000 Notes Payable 24,000 Cash 12,000 Supplies Expense 9,000 Service Revenue 24,000 Gasoline Expense 7,100 Salaries Payable 1,500 Calculate […]
Date: September 2nd, 2020
Best Plumbing Corporation provides plumbing services. Selected transactions of Best Plumbing Corporation are described as follows: a) Received $9,000 cash and issued common stock to Sharon b) Paid $5,000 cash for equipment to be used for plumbing repairs. c) Borrowed $10,000 from a local bank and deposited the money in the checking account. d) Paid […]
Date: September 2nd, 2020
The total assets and the total liabilities of Smart Financial Services are shown below. The company issued no common stock and paid no dividends during the year Assets Liabilities Beginning of year $405,000 $270,000 End of year 455,000 300,000 What was the amount of net income for the year? A) $50,000 B) $30,000 C) $20,000 […]
Date: September 2nd, 2020
