hanks corporation acquired $150,000 cash by issuing common stock to investors. as a result of this event
retained earnings increased
if a company's expenses are greater than it's revenue for the year
the company incurred a net loss during the period
liabilities are shown on the
balance sheet
generally accepted accounting principles (GAAP) are measurement rules for
financial accounting
accounting information focused on the needs of external users is
financial accounting
liabilities are
claims of creditors
the accounting equation may be written
assets=claims
retained earnings is
a part of stockholders equity
ohio company provided services to a customer for $1,700 cash. as a result of this event
retained earnings increased
which of the following items would be an example of revenue
cash received from customers for services provided
in 1998, parker corporation purchased land for $130,000. in 2010, parker company had the land appraised and its value was estimated to be $190,000. also during 2010, another company offered parker $145,000 for the parcel of land. when the balance sheet is
$130,000
which of the flowing items would appear on a balance sheet?
notes payable
wayne company purchased equipment for $45,000 cash. as a result of this even, wayne had a
$45,000 cash outflow from investing activities
bridges company earned $4,000 in cash revenues, paid cash expenses of $3,450, and paid a cash dividend of $300 to its owners. it engaged in no other transactions during the period. which of the following statements is true?
the net cash of flow from operating activities was an inflow or increase of $550
which of the following items would appear in the financings activities section of a statement of cash flows?
paid cash for dividends
dividends paid by a company are shown on the
statement of changes in stockholders' equity
expenses are shown on the
income statement
cash $8000
accounts payable $5500
common stock $4000
land $18,000
accounts receivable $2,000
based on this information, the amount of retained earnings was
$18,500
nez company provided services for $7,500 cash during the 2010 accounting period. nez incurred $6000 expenses on account during 2010, and by the end of the year, $3,000 of that amount had been paid off with cash. nez paid dividends of $900 to stockholders
$1,500
harrison and sons is a law firm. on september 1, 2010, harrison contracted to provide 12 months of legal services to a client. on that date, harrison collected $36,000 retainer and began providing services. how much revenue would harrison report from that
$12,000
the greenwood company purchased equipment costing $900. greenwood paid $400 in cash and agreed to pay the remaining amount in thirty days. as a result of this transaction:
liabilities increased by $500
recording accrued salary expense at the end of an accounting period causes an increase in salaries expense and
an increase in a liability
if a company purchases supplies on account this transaction would cause
liabilities to increase
on may 1, 2010, perez company paid $12,000 rent for a one year lease on equipment it uses in its operations. the adjusting entry at the end of the year
decreases assets and stockholders' equity
dale company purchased land costing $2,400 by paying cash. the company earned $2,000 revenue on account and incurred $1,100 of operating expenses on account. as a result of these transactions
liabilities increased by $1,100
bloomfield company issued stock for $30,000 cash on january 20, 2010. during 2010, the company recorded revenue on account of $12,000 and expenses on account of $5,500. bloomsfield received $8,200 cash from account receivable and paid $4,500 on the accoun
$28,700
jaycox company received $1,000 cash from the issue of stock on january 1, 2010. during 2010, the jaycox company earned $3,500 of revenue on account. the company collected $2,400 from accounts receivable and paid $3,000 cash for operating expenses. based o
total assets increased by $1,500
cash $1,000
dividends $100
land $800
accounts payable $450
accounts receivable $850
common stock $975
revenues $800
expenses $550
total assets not the december 31, 2009 balance sheet amounted to
$2,650
the amount of net income shown on the december 31, 2009 income statement would amount to
$250
which of the following would be included in the "cash flows from investing activities" section of the statement of cash flows
sold land for cash
which of the following would be included in the "cash flows from financing activities" section of the statement of cash flows
paid cash dividend to stockholders
which of the following accounts would not be closed at the end of an accounting cycle
common stock
the matching concept refers to the "matching" of
expenses and revenues
lemars company signed a three year contract to perform consulting serves for a local manufacturer on september 1, 2009. lemars received $48,000 cash as an advance payment for these services and agreed the work would begin immediately.
the amounts of reven
$5,333/$16,000
lemurs company signed a three year contract to perform consulting serves for a local manufacturer on september 1, 2009. lemars received $48,000 cash as an advance payment for these services and agreed the work would begin immediately.
the amounts of cash
$48,000/$-0-
the balance sheet for raymond company shows total assets of $4,000, liabilities of $1,500, and retained earnings of $1,200. based on this information, the amount of common stock must be
$1,300
the amount of insurance expense reported on the income statement for 2010 would be
$900
the amount of cash flow from operating activities would be
$1,900
for grace company, revenue on account amounted to $5,000. cash collections of accounts receivable amounted to $2,300. expenses incurred on account were $2,100. cash paid on accounts payable was $1,950.
grace's net income was
$2,900
which of the following is NOT an accurate description of the Allowance for Doubtful Accounts?
an income statement account
the net realizable value of accounts receivable is calculated
accounts receivable - allowance for doubtful accounts
to estimate the amount of its uncollectible accounts receivable, a company might
consult industry publications
look at its past history of uncollectible accounts
take into account the current condition of the economy
ALL OF THE ABOVE
the stevens company provided $45,000 of services on account during 2011, its first year in operation. during 2011, stevens collected $34,000 of cash from its receivable accounts. the company estimates that it will be unable to collect 2% of its revenues o
$900
the entry required to recognize the uncollectible accounts expense for 2010 will
decrease total assets and retained earnings
which of the following would be classified as a long-term operational asset?
office equipment
which of the following would NOT be classified as a tangible long-term asset?
trademarks
which of the following is NOT classified as property, plant, and equipment?
goodwill
which of the following terms is used to identify the process of expense recognition for buildings and equipment?
depreciation
mobley company purchased an asset with a list price of $35,000. mobley received a 2% cash discount. the asset was delivered under the terms FOB shipping point, and the freight costs amounted to $700. mobley paid $1,500 to have the asset installed. insuran
$36,500
which of the following is considered an accelerated depreciation method?
double declining balance
on january 1, 2009, racine company purchased equipment that cost $55,000 cash. the equipment had an expected useful life of six years and an estimated salvage value of $4,000. assuming that racine depreciates its assets under the straight line method, the
D/E : $8,500
A/D : $17,000
clark company paid cash to purchased equipment on january 1, 2009. select the answer that shows how the recognition of depreciation expense in 2009 would affect assets, liabilities, equity, net income, and cash flow.
assets = liabilities + equity net income cash flow
- NA - - NA
philips corporation purchased a truck that cost $26,000. the company expected to drive the truck 100,000 miles. the truck had an estimated salvage value of $2,000. if the truck is driven 36,000 miles in the current accounting period, which of the followin
$8,640
on january 1, 2008 morgan co. purchased a truck that cost $32,000. the truck had an expected useful life of 10 years and a $5,000 salvage value. the amount of depreciation expense recognized in 2009 assuming that morgan uses the double declining balance m
$5,120
at the end of the current accounting period, washta co. recorded depreciation of $25,000 on its equipment. the effect of this entry on the company's balance sheet is to:
decrease owners' equity and decrease assets
on january 1, 2008, desmet company purchased office equipment that has a cost of $15,000 cash. the equipment was delivered under terms FOB shipping point, and transportation cost was $1,000. the equipment had a 5 year useful life and a $1,200 expected sal
$2,960/$8,880
rouse company owned an asset that had cost $32,000. the company sold the asset on january 1, 2009 for $8,000. accumulated depreciation on the day of sale amounted to $26,000. based on this information, the sale would result in:
an $8,000 cash inflow in the investing activities section of the cash flow statement
which of the following terms is used to identify the expense recognition for intangible assets?
amortization
the fair value of the assets and liabilities for zane's restaurant were $450,000 and $160,000, respectively. if reiner company pays $325,000 cash for the restaurant and assumes its existing liabilities, what amount of goodwill would reiner record?
$35,000
on january 1, 2008, stetson company paid $160,000 to obtain a patent. stetson expected to use the patent for 5 years before it became technologically obsolete. based on this information, the amount of amortization expense on the december 31, 2010 income s
$32,000/$96,000
the harlow company purchased the hampton company for $600,000 cash. the fair market value of hampton's assets was $520,000 and the company had liabilities of $30,000. what amount of goodwill should harlow record related to the purchase of hampton company
$110,000
which of the following terms is applied to long-term assets that have no physical substance and provide rights, privileges and special opportunities
intangible assets
which of the following should be the main determinant in the selection of the depreciation method for long-term operational assets?
the method that best matches the pattern of asset use
regardless of the specific time of long-term debt, which of the following are normally required with debt transactions?
to repay the debt
to pay interest
A AND C ARE BOTH CORRECT
bonds payable are usually classified on the balance sheet as
long-term liabilities
a current asset is
an asset that is expected to be used or converted to cash within one year or the operating cycle, whichever is longer
current liabilities include
some notes payable
taxes payable
the current portion of some long-term liabilities
ALL OF THESE
liquidity refers to a company's ability to
generate cash flows to pay current liabilities
which of the following items is NOT classified as a current asset?
a patent
current liabilities as of december 31, 2009 are the
debts on december 31, 2009 that are expected to be paid using current assets during 2010
which of the following items would be lease likely to appear in the current liabilities section of a classified balance sheet
bonds payable
current assets $750
concurrent assets $1,300
total assets $2,050
current liabilities $300
noncurrent liabilities $800
total liabilities $1,100
aslan company's current ratio is:
2.5/1
the december 31, 2009 balance sheet of juneau company showed current assets of $16,000 and current liabilities of $10,000. on january 1, 2010, the company issued common stock for $5,000 cash and collected $3,000 of its accounts receivable. following these
2.1/1