Question 1

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

Accepted Answer

The income statement is the financial statement that reports the revenues and expenses and whether the business earned a profit or not. The other options are not concerned with profit and loss reporting - the statement of cash flows reports cash inflows and outflows, the statement of financial position (also known as the balance sheet) reports assets, liabilities, and equity at a point in time, and the statement of owner's equity reports changes in the owner's investment in the business.

Question 2

Accounts payable appear on which of the following statements?

Accepted Answer

Accounts payable are a liability and appear on the balance sheet, which is a statement that shows a company's assets, liabilities, and equity at a given point in time. They don't appear on the statement of cash flows, the transaction statement, the statement of owner's equity, or the income statement.

Question 3

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

Accepted Answer

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

Question 4

Determine the net income of a company for which the following information is available for the month of September. $\begin{array}{lr}
\text { Service revenue } & \$ 300,000 \
\text { Rent expense } & 48,000 \
\text { Utilities expense } & 3,200 \
\text { Salaries expense } & 81,000
\end{array}$

Accepted Answer

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

Question 5

The income statement reports all of the following except:

Accepted Answer

The income statement reports revenues and expenses for a specific time period in order to determine net income or loss. It does not report on any assets owned by the business.

Question 6

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

Accepted Answer

Ending Equity = Beginning Equity + Net Income - Withdrawals 
Ending Equity = $277,000 + $63,000 - $25,000 
Ending Equity = $315,000

Question 7

A balance sheet lists:

Accepted Answer

A balance sheet is a financial statement that lists the types and amounts of assets, liabilities, and equity of a business as of a specific date. It does not show the inflows and outflows of cash during a period, the information about what happened to equity during a time period, or the revenues and expenses of a business. It does, however, include information about the owner's equity as a component of the overall equity of the business.

Question 8

Determine the net income of a company for which the following information is available for the month of July. $\begin{array}{lr}
\text { Employee salaries expense } & \$ 180,000 \
\text { Interest expense } & 10,000 \
\text { Rent expense } & 20,000 \
\text { Consulting revenue } & 400,000
\end{array}$

Accepted Answer

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

Question 9

Use the following information as of December 31 to determine equity. $$\begin{array} { l l } 
\text { Cash } & \$ 57,000 \
\text { Buildings } & 175,000 \
\text { Equipment } & 206,000 \
\text { Ijabilities } & 141,000
\end{array}$$

Accepted Answer

Equity is calculated as total assets minus liabilities. Total assets are the sum of cash, buildings, and equipment, which equals $438,000. Subtracting liabilities of $141,000 from total assets gives equity of $297,000.

Question 10

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:

Accepted Answer

The answer of Zippy had cash inflows from operations $60,500;...

Question 11

The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner, net income (or net loss); withdrawals; and the ending balance, is the:

Accepted Answer

The statement that shows the beginning balance, changes, and ending balance of owner's equity is the statement of owner's equity. This statement is separate from the income statement, which shows net income/loss, and the balance sheet, which shows the assets, liabilities, and equity at a specific point in time.

Question 12

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

Accepted Answer

Beginning equity + investments by owners + net income - withdrawals = ending equity
$257,000 + $6,000 + $51,000 - $40,000 = $274,000

Question 13

Use the following information for Meeker Corp. to determine the amount of equity to report. $\begin{array}{lr}
\text { Cash } & \$ 70,000 \
\text { Buildings } & 125,000 \
\text { Land } & 205,000 \
\text { Liabilities } & 130,000
\end{array}$

Accepted Answer

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

Question 14

The basic financial statements include all of the following except:

Accepted Answer

The basic financial statements include Income Statement, Statement of Owner's Equity, Statement of Cash Flows, and Balance Sheet. The Statement of Changes in Assets is not a basic financial statement.

Question 15

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

Accepted Answer

Borrowing money represents a financing activity, as it involves obtaining funds from an external source to support the company's operations. Operating activities would include cash receipts and payments related to the day-to-day business, investing activities would involve the purchase or sale of long-term assets, revenue activities would involve the sale of goods or services, and expense activities would involve the payment of operating expenses.

Question 16

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

Accepted Answer

The statement of cash flows identifies a company's cash receipts and cash payments over a period of time, providing information on both the sources and uses of cash. The balance sheet shows a company's assets, liabilities, and equity at a given point in time, while the statement of financial position is another term for the balance sheet. The statement of changes in owner's equity shows how the equity section of the balance sheet changes over time, and the income statement shows a company's revenues, expenses, and net income over a period of time.

Question 17

Cash investments by owners are listed on which of the following statements?

Accepted Answer

Cash investments by owners are reported on both the statement of owner's equity (as a component of owner's equity changes) and the statement of cash flows (under the financing activities section). Therefore, the best choice is E, which includes both statements.

Question 18

The statement of owner's equity:

Accepted Answer

The statement of owner's equity reports how equity changes over a period of time, reflecting the changes in the owner's investments, distributions, and net income or loss for a given accounting period. It does not report on cash flows or amounts of assets, liabilities, and equity at a point in time.

Question 19

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):

Accepted Answer

A balance sheet lists a company's assets, liabilities, and equity as of a specific date. It provides information on the financial status of the company and helps users understand its overall financial health. The other options listed are different types of financial statements that provide information on a company's performance and financial activities, but not necessarily its financial status.

Question 20

Rent expense appears on which of the following statements?

Accepted Answer

Rent expense is a type of operating expense and appears on the income statement, which reports the company's revenues and expenses over a specific period of time.

Quiz 1: Accounting in Business

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

Accounts payable appear on which of the following statements?

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

Determine the net income of a company for which the following information is available for the month of September. $\begin{array}{lr}\text { Service revenue } & \$ 300,000 \\\text { Rent expense } & 48,000 \\\text { Utilities expense } & 3,200 \\\text { Salaries expense } & 81,000\end{array}$

The income statement reports all of the following except:

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

A balance sheet lists:

Use the following information as of December 31 to determine equity. $\begin{array} { l l } \text { Cash } & \$ 57,000 \\\text { Buildings } & 175,000 \\\text { Equipment } & 206,000 \\\text { Ijabilities } & 141,000\end{array}$

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:

The financial statement that shows the beginning balance of owner's equity; the changes in equity that resulted from new investments by the owner, net income (or net loss) ; withdrawals; and the ending balance, is the:

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

Use the following information for Meeker Corp. to determine the amount of equity to report. $\begin{array}{lr}\text { Cash } & \$ 70,000 \\\text { Buildings } & 125,000 \\\text { Land } & 205,000 \\\text { Liabilities } & 130,000\end{array}$

The basic financial statements include all of the following except:

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

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

Cash investments by owners are listed on which of the following statements?

The statement of owner's equity:

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) :

Rent expense appears on which of the following statements?