Jeffery 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 […]
By looking at a statement of retained earnings, the effect of dividends on the ending balance of retained earnings can be determined. Indicate whether the statement is true or false ANSWER TRUE
The balance of stockholders’ equity at the beginning of the year and the end of the year was $50,000 and $60,000, respectively. The company issued no common stock during the year. Dividends were $20,000. What was the net income or loss for the year? A) Net income of $80,000 B) Net loss of $80,000 C) […]
The net income of Edwards Corporation amounted to $73,000 for this year. The beginning balance of stockholders’ equity was $30,000 and the ending balance was $70,000. The company issued no common stock during the year What was the amount of dividends distributed during the year? A) $70,000 B) $33,000 C) $143,000 D) $30,000 ANSWER B […]
Which of the following transactions will affect the balance of Retained Earnings? A) issued common stock for cash B) paid rent expense for the month C) purchased land for cash D) collection on account ANSWER B
In a statement of retained earnings, decreases in retained earnings result from ________. A) issuance of stock B) net losses C) net income D) revenues earned ANSWER B
Which of the following statements best defines financial statements? A) Financial statements are the information systems that record monetary and nonmonetary business transactions. B) Financial statements are the verbal statements made to business news organizations by chief financial officers. C) Financial statements are documents that report on a business in monetary terms, providing information to […]
The amount of net income is transferred from ________ to ________. A) the income statement; the statement of retained earnings B) the balance sheet; the statement of cash flows C) the balance sheet; the income statement D) the income statement; the statement of expenditures ANSWER A
Financial statements are business documents used to communicate information needed to make business decisions. Indicate whether the statement is true or false ANSWER TRUE
Which of the following financial statements shows the dividends distributed to stockholders? A) Income statement B) Statement of retained earnings C) Budgeted balance sheet D) Balance sheet ANSWER B
