1st Long Exam
Tour 131
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1. Which of the following items would not fall under the definition of an asset? a) Land
b) Machinery
c) Cash
d) Owner’s equity
e) Debtors
2. Which one of the following items would fall under the definition of a liability? a) Cash b) Receivables
c) Owner’s equity
d) Tax owed
e) None of the above
3. A business has the following items in it:
Land ?
Vehicles 600,000
Receivables 120,000 Cash 30,000
Owner’s equity 1,000,000 Bank Loan 500,000
Payables 50,000
What is the value of the land? _______________________
4. A business has the following items in it:
Land 1,000,000
Machinery 20,000
Cash 10,000
Debt 0 Owner’s equity ?
What is the value of the Owner’s equity? ____________________
5. __________-entry bookkeeping will result in at least two accounts being involved in every transaction.
6. Every transaction will have one account being credited and one account being __________.
7. The accounting equation is:
Assets = ____________________ + Stockholders' (or Owner's) Equity.
8. The profitability of a company for a specified period of time is reported on the __________ statement.
9. The main components or elements of the income statement are ______________, expenses, gains, and losses.
10. The first section of the statement of cash flows is the __________ activities.
11. The_______________________ ratio measures how fast a company can sell its inventory.
12. At year-end, if net income equals $15,000 and the ending owner’s equity is $20,000, and the owner invested an additional $2,600 in his business, while withdrawing $6,000 during the year, the beginning owner’s equity for this year was: a. $7,100
b. $7,400
c. $8,400
d. $7,430
e. none of the above
Use the following information to answer the next three questions.
Joseph Forbes is the owner of his own business. On December 31, Forbes’ assets, liabilities, revenues and expenses were:
Insurance Expenses 3,000
Accounts Payable 4,000
Miscellaneous Expenses 900
Accounts Receivable 5,000
Rent Expenses 2,500
Cash 14,000 Salaries Expense
Equipment
Supplies Expense
Notes Payable
Services Revenue
Supplies on hand
19,000
11,000
1,200
4,600
45,000
700
13. On December 31, total assets are equal to:
a) 25,700
b) 19,700
c) 22,100
d) 30,700
e) none of the above
14. On December 31, net income is equal to:
a) 18,400
b) 45,000
c) 19,000
d) 17,400
e) none of the above
15. On December 31, current assets equal:
a) $9,000
b) $19,700
c) $19,000
d) $23,000
e) none of the above
16. Prepare the year-end income statement and the corresponding balance sheet for Chenelyn Company based on the following account balances on December 31, 2019.
Cash Php 49,500
Accounts Receivable 125,000
Supplies 1,500
Prepaid Insurance 12,000
Equipment 70,000
Building 420,000
Land 111,500
Accounts Payable 80,000
Notes Payable 170,000
Common Stock 410,000
Retained Earnings 65,000
Dividends 20,000
Service Revenue 174,000
Interest Revenue 1,000
Salaries Expense 52,000
Advertising Expense 17,000
Insurance Expense 5,000
Utilities Expense 13,750
Interest Expense 2,750
17. Prepare the 2012 common-size income statement and balance sheet for Bartlett. (Express as % rounded off to 2 decimal places.)
18. Prepare the Statement of Cash Flows for 2002 for Prufrock Corporation using the Indirect Method.