Question 1

Determine the net income of a company for which the following information is available for the month of September. 
A)$263,800.
B)$432,200.
C)$171,000.
D)$167,800.
E)$252,000.

Accepted Answer

The answer of Determine the net income of a company...

Question 2

Zapper has beginning equity of $257,000,net income of $51,000,dividends of $40,000 and stockholder investments of $6,000.Its ending equity is:
A)$223,000.
B)$240,000.
C)$268,000.
D)$274,000.
E)$208,000.

Accepted Answer

Ending equity is calculated by starting with the beginning equity, adding net income, adding stockholder investments, and subtracting dividends. So, $257,000 + $51,000 + $6,000 - $40,000 = $274,000.

Question 3

The income statement reports all of the following except:
A)Revenues earned by a business.
B)Expenses incurred by a business.
C)Assets owned by a business.
D)Net income or loss earned by a business.
E)The time period over which the earnings occurred.

Accepted Answer

The income statement reports information related to revenues earned and expenses incurred by a business during a specific time period. It also reports the net income or loss earned during that period. However, it does not report information related to the assets owned by a business; this information is reported on the balance sheet.

Question 4

A financial statement providing information that helps users understand a company's financial status,and which lists the types and amounts of assets,liabilities,and equity as of a specific date,is called a(n):
A)Balance sheet.
B)Income statement.
C)Statement of cash flows.
D)Statement of retained earnings.
E)Financial Status Statement.

Accepted Answer

A balance sheet is the only financial statement among the given options that provides information about a company's financial status, lists types and amounts of assets, liabilities, and equity as of a specific date. The Income statement shows the revenue and expenses for a certain period. The Statement of Cash Flows describes the cash inflows and outflows for a certain period. The Statement of Retained Earnings shows changes in retained earnings during a certain period. There is no such financial statement as a Financial Status Statement.

Question 5

The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:
A)Statement of financial position.
B)Statement of cash flows.
C)Balance sheet.
D)Income statement.
E)Statement of retained earnings.

Accepted Answer

The statement that identifies the company's cash receipts and cash payments over a period of time is the statement of cash flows. The other options do not focus specifically on cash transactions. The balance sheet is a snapshot of assets, liabilities, and equity at a given point in time. The income statement shows revenues and expenses over a period of time. The statement of retained earnings shows changes in retained earnings over a period of time.

Question 6

Use the following information as of December 31 to determine equity. 
A)$57,000.
B)$141,000.
C)$297,000.
D)$438,000.
E)$579,000.

Accepted Answer

The answer of Use the following information as of December...

Question 7

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n):
A)Revenue activity.
B)Operating activity.
C)Expense activity.
D)Investing activity.
E)Financing activity.

Accepted Answer

Borrowing money from a bank represents a financing activity, as it involves obtaining funds from external sources to support a company's operations.

Question 8

The financial statement that shows the beginning balance of retained earnings; the changes in equity that resulted from net income (or net loss); dividends; and the ending retained earnings balance,is the:
A)Statement of financial position.
B)Statement of cash flows.
C)Balance sheet.
D)Income statement.
E)Statement of retained earnings.

Accepted Answer

The statement that shows the beginning balance of retained earnings and the changes in equity resulting from net income, dividends, and the ending balance of retained earnings is the Statement of Retained Earnings.

Question 9

The basic financial statements include all of the following except:
A)Balance Sheet.
B)Income Statement.
C)Statement of Retained Earnings.
D)Statement of Cash Flows.
E)Statement of Changes in Assets.

Accepted Answer

The basic financial statements include the Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows. The Statement of Changes in Assets is not a commonly recognized financial statement.

Question 10

Accounts payable appear on which of the following statements?
A)Balance sheet.
B)Income statement.
C)Statement of retained earnings.
D)Statement of cash flows.
E)Transaction statement.

Accepted Answer

Accounts payable appear on the balance sheet as a current liability, reflecting the amount a company owes to its creditors for goods or services received but not yet paid for.

Question 11

Cash investments by stockholders are listed on which of the following statement(s)?
A)Balance sheet.
B)Income statement.
C)Statement of retained earnings only.
D)Statement of cash flows only.
E)Statement of retained earnings and statement of cash flows.

Accepted Answer

The answer of Cash investments by stockholders are listed on...

Question 12

The statement of cash flows:
A)Reports how equity changes at a point in time.
B)Reports how equity changes over a period of time.
C)Reports on cash flows for operating,financing,and investing activities over a period of time.
D)Reports on cash flows for operating,financing,and investing activities at a point in time.
E)Reports on amounts for assets,liabilities,and equity at a point in time.

Accepted Answer

The statement of cash flows reports on the cash flows for operating, financing, and investing activities over a period of time. It does not report on changes in equity at a point in time, changes in equity over a period of time, cash flows at a point in time, or amounts for assets, liabilities, and equity at a point in time.

Question 13

Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000.The net change in cash was:
A)$38,500 increase.
B)$38,500 decrease.
C)$132,500 decrease.
D)$132,000 increase.
E)$11,500 decrease.

Accepted Answer

Net change in cash = cash inflows from operations - cash outflows from investing activities + cash inflows from financing activities
Net change in cash = $60,500 - $47,000 + $25,000
Net change in cash = $38,500 increase

Question 14

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:
A)$365,000.
B)$239,000.
C)$189,000.
D)$315,000.
E)$277,000.

Accepted Answer

Ending equity is calculated by starting with the beginning equity, adding net income, and subtracting dividends. Therefore, $277,000 + $63,000 - $25,000 = $315,000.

Question 15

Use the following information for Meeker Corp to determine the amount of equity to report. 
A)$390,000.
B)$140,000.
C)$20,000.
D)$530,000.
E)$270,000.

Accepted Answer

The answer of Use the following information for Meeker Corp...

Question 16

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
A)Balance sheet.
B)Statement of retained earnings.
C)Statement of cash flows.
D)Income statement.
E)Statement of financial position.

Accepted Answer

The income statement is the financial statement that reports whether the business earned a profit and also lists the revenues and expenses. The balance sheet reports the assets, liabilities, and equity at a point in time, whereas the statement of retained earnings reports changes in the business's earnings that have been kept in the company rather than paid out as dividends. The statement of cash flows reports the inflows and outflows of cash during a period, and the statement of financial position is another term for the balance sheet.

Question 17

A balance sheet lists:
A)The types and amounts of the revenues and expenses of a business.
B)Only the information about what happened to equity during a time period.
C)The types and amounts of assets,liabilities,and equity of a business as of a specific date.
D)The inflows and outflows of cash during the period.
E)The assets and liabilities of a company but not the stockholders' equity.

Accepted Answer

A balance sheet lists the types and amounts of assets, liabilities, and equity of a business as of a specific date.

Question 18

Determine the net income of a company for which the following information is available for the month of July. 
A)$190,000.
B)$210,000.
C)$230,000.
D)$400,000.
E)$610,000.

Accepted Answer

The answer of Determine the net income of a company...

Question 19

Rent expense appears on which of the following statements?
A)Balance sheet.
B)Income statement.
C)Statement of retained earnings.
D)Statement of periodic expenses.
E)Statement of cash flows only.

Accepted Answer

Rent expense appears on the income statement as it is a part of operating expenses.

Question 20

A company acquires equipment for $75,000 cash.This represents a(n):
A)Operating activity.
B)Investing activity.
C)Financing activity.
D)Revenue activity.
E)Expense activity.

Accepted Answer

Acquiring equipment is an investing activity because it involves the purchase of long-term assets that will be used in the company's operations.

Quiz 1: Introducing Financial Statements

Determine the net income of a company for which the following information is available for the month of September.

Zapper has beginning equity of $257,000,net income of $51,000,dividends of $40,000 and stockholder investments of $6,000.Its ending equity is:

The income statement reports all of the following except:

A financial statement providing information that helps users understand a company's financial status,and which lists the types and amounts of assets,liabilities,and equity as of a specific date,is called a(n) :

The financial statement that identifies a company's cash receipts and cash payments over a period of time is the:

Use the following information as of December 31 to determine equity.

A company borrows $125,000 from the Northern Bank and receives the loan proceeds in cash.This represents a(n) :

The financial statement that shows the beginning balance of retained earnings; the changes in equity that resulted from net income (or net loss) ; dividends; and the ending retained earnings balance,is the:

The basic financial statements include all of the following except:

Accounts payable appear on which of the following statements?

Cash investments by stockholders are listed on which of the following statement(s) ?

The statement of cash flows:

Zippy had cash inflows from operations $60,500; cash outflows from investing activities of $47,000; and cash inflows from financing of $25,000.The net change in cash was:

Cragmont has beginning equity of $277,000,net income of $63,000,dividends of $25,000 and no additional investments by stockholders during the period.Its ending equity is:

Use the following information for Meeker Corp to determine the amount of equity to report.

The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:

A balance sheet lists:

Determine the net income of a company for which the following information is available for the month of July.

Rent expense appears on which of the following statements?

A company acquires equipment for $75,000 cash.This represents a(n) :