Financial accounting information about a business organization:
Question 1 options:
A) is primarily reported to outsiders through a set of reports called financial statements
B) is made available to investors and creditors by permitting them access to the accounting records
C) must be made available to the public by law, regardless of the size of the business
D) is generally available only to management
Question 2
The statement of changes in owners' equity shows:
Question 2 options:
A) the change in cash during a year
B) revenues, expenses, and liabilities for the period
C) net income and dividends for the period
D) paid-in capital and long-term debt at the end of the period
E) all of the above are found on the statement of changes in owners' equity
Question 3
Question 3 options:
During 2002, the assets of XYZ Company decreased by $60,000 and the liabilities increased by $79,000. XYZ Company's total assets at the beginning of 2002 were $500,000 and XYZ Company's total equity at the end of 2002 was equal to $215,000.
Calculate XYZ Company's total liabilities at the beginning of 2002. Do not use decimals in your answer.
Question 4
Indicate on which financial statement the following accounts would appear. Enter the number corresponding to your answer in the box next to the account name. Answer choices may be used once, more than once, or not at all.
Question 4 options:
interest revenue
mortgage payable
insurance expense
inventory
patent
retained earnings
1. balance sheet
2. income statement
3. statement of changes in owners' equity
4. the account would appear on 2 different financial statements
5. the account would appear on all 3 financial statements
Question 5
Question 5 options:
The following information was taken from the accounting records of ABC Company for the year ended
December 31, 2006:
Cash ........................ $26,000
Accounts Payable ............ $61,000
Sales Revenue ............... $94,000
Copyright ................... $37,000
Advertising Expense ......... ?
Common Stock ................ $97,000
Utilities Payable ........... $13,000
Supplies .................... $16,000
Cost of Goods Sold .......... $42,000
Rental Revenue .............. $19,000
Building .................... $86,000
Notes Payable ............... ?
Utilities Expense ........... $13,000
Inventory ................... $77,000
Dividends ................... $11,000
Equipment ................... $65,000
Retained Earnings ........... $59,000 (at January 1, 2006)
Income Tax Expense .......... $18,000
Accounts Receivable ......... $41,000
ABC Company reported total equity at December 31, 2006 in the amount of $178,000.
Calculate the amount of gross profit earned by ABC Company during 2006.
Question 6
Question 6 options:
The following information was taken from the accounting records of ABC Company for the year ended
December 31, 2006:
Cash ........................ $26,000
Accounts Payable ............ $61,000
Sales Revenue ............... $94,000
Copyright ................... $37,000
Advertising Expense ......... ?
Common Stock ................ $97,000
Utilities Payable ........... $13,000
Supplies .................... $16,000
Cost of Goods Sold .......... $42,000
Rental Revenue .............. $19,000
Building .................... $86,000
Notes Payable ............... ?
Utilities Expense ........... $13,000
Inventory ................... $77,000
Dividends ................... $11,000
Equipment ................... $65,000
Retained Earnings ........... $59,000 (at January 1, 2006)
Income Tax Expense .......... $18,000
Accounts Receivable ......... $41,000
ABC Company reported total equity at December 31, 2006 in the amount of $178,000.
Calculate the total current assets reported in ABC Company's balance sheet at December 31, 2006.
Question 7
Question 7 options:
The following information was taken from the accounting records of ABC Company for the year ended
December 31, 2006:
Cash ........................ $26,000
Accounts Payable ............ $61,000
Sales Revenue ............... $94,000
Copyright ................... $37,000
Advertising Expense ......... ?
Common Stock ................ $97,000
Utilities Payable ........... $13,000
Supplies .................... $16,000
Cost of Goods Sold .......... $42,000
Rental Revenue .............. $19,000
Building .................... $86,000
Notes Payable ............... ?
Utilities Expense ........... $13,000
Inventory ................... $77,000
Dividends ................... $11,000
Equipment ................... $65,000
Retained Earnings ........... $59,000 (at January 1, 2006)
Income Tax Expense .......... $18,000
Accounts Receivable ......... $41,000
ABC Company reported total equity at December 31, 2006 in the amount of $178,000.
Calculate the net income earned by ABC Company during 2006. Do not use decimals in your answer.
Question 8
Question 8 options:
The following information was taken from the accounting records of ABC Company for the year ended
December 31, 2006:
Cash ........................ $26,000
Accounts Payable ............ $61,000
Sales Revenue ............... $94,000
Copyright ................... $37,000
Advertising Expense ......... ?
Common Stock ................ $97,000
Utilities Payable ........... $13,000
Supplies .................... $16,000
Cost of Goods Sold .......... $42,000
Rental Revenue .............. $19,000
Building .................... $86,000
Notes Payable ............... ?
Utilities Expense ........... $13,000
Inventory ................... $77,000
Dividends ................... $11,000
Equipment ................... $65,000
Retained Earnings ........... $59,000 (at January 1, 2006)
Income Tax Expense .......... $18,000
Accounts Receivable ......... $41,000
ABC Company reported total equity at December 31, 2006 in the amount of $178,000.
Calculate the total assets reported in ABC Company's balance sheet at December 31, 2006.
Question 9
Question 9 options:
The following information was taken from the accounting records of ABC Company for the year ended
December 31, 2006:
Cash ........................ $26,000
Accounts Payable ............ $61,000
Sales Revenue ............... $94,000
Copyright ................... $37,000
Advertising Expense ......... ?
Common Stock ................ $97,000
Utilities Payable ........... $13,000
Supplies .................... $16,000
Cost of Goods Sold .......... $42,000
Rental Revenue .............. $19,000
Building .................... $86,000
Notes Payable ............... ?
Utilities Expense ........... $13,000
Inventory ................... $77,000
Dividends ................... $11,000
Equipment ................... $65,000
Retained Earnings ........... $59,000 (at January 1, 2006)
Income Tax Expense .......... $18,000
Accounts Receivable ......... $41,000
ABC Company reported total equity at December 31, 2006 in the amount of $178,000.
Calculate the balance in the notes payable account at December 31, 2006.
Question 10
Question 10 options:
The following information was taken from the accounting records of ABC Company for the year ended
December 31, 2006:
Cash ........................ $26,000
Accounts Payable ............ $61,000
Sales Revenue ............... $94,000
Copyright ................... $37,000
Advertising Expense ......... ?
Common Stock ................ $97,000
Utilities Payable ........... $13,000
Supplies .................... $16,000
Cost of Goods Sold .......... $42,000
Rental Revenue .............. $19,000
Building .................... $86,000
Notes Payable ............... ?
Utilities Expense ........... $13,000
Inventory ................... $77,000
Dividends ................... $11,000
Equipment ................... $65,000
Retained Earnings ........... $59,000 (at January 1, 2006)
Income Tax Expense .......... $18,000
Accounts Receivable ......... $41,000
ABC Company reported total equity at December 31, 2006 in the amount of $178,000.
Calculate the balance in the advertising expense account at December 31, 2006.
Question 11
Question 11 options:
Brown Company reported the following amounts at the end of its first year of operations:
Contributed Capital $30,000
Total Expenses $61,000
Total Assets $90,000
Dividends $16,000
Total Liabilities $25,000
Calculate the total revenues earned by Brown Company during its first year of operations.