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users of financial statements

users of financial statements
Question 1
Which of the following is true about the users of financial statements???
A) Users of financial information can control the information they receive.?
B) Users of financial information have the same information needs.?
C) Users of financial information have different information needs.?
D) Users of financial information are most interested in the statistical patterns formed by changing stock prices.?

Question 2
A transaction that causes an increase in an asset may also cause??
A) a decrease in owners’ equity.?
B) an increase in another asset.?
C) a decrease in a liability.?
D) an increase in either a liability or owners’ equity.?

Question 3
Dividends represent what accounting element???
A) Expenses?
B) Retained earnings?
C) Distribution to owners?
D) Liability?

Question 4
The financial statement that reports resources owned, obligations to transfer resources to other organizations, and the claims by the entity’s owners is known as the ??
A) Income statement?
B) Statement of retained earnings?
C) Balance sheet?
D) Statement of cash flows?
Question 5
During the year, a corporation had revenues of $92,000 and expenses of $64,000. Dividends of $14,000 were paid during the year and additional stock was issued for $3,700. If total assets and liabilities at the beginning of the year were $65,000 and $28,000, respectively, how much is owners’ equity at year-end.??
A) $68,700?
B) $54,700?
C) $40,700?
D) $32,700?

Question 6
On September 4, a corporation sold merchandise to a customer for $500 on account. On September 30, the corporation collected the $500 owed by the customer. The correct entry (without explanation) to record the 4 September is:??

A
. Cash……………………….…………………………… . 500
. Sales revenue…………………………………. . 500
.
B
. Accounts receivable…………………………… . 500
. Sales revenue……………………………….. . 500
.
C .
. Sales revenue………….…………………………… . 500
. Accounts receivable………………………… . 500
.
D .
. Sales revenue………………….………………………………… . 500
. Cash …………………………………………………………. . 500
.

Question 7
On June 1, a company borrowed $2,000 from a bank. On August 31, the company paid off the loan plus $50 interest. The correct entry (without explanations) to record the borrowing transaction on June 1 is??
. a.
. b.
. c.
. d. . ?Debit Note payable for $2,000; credit cash for $2,000.?
. ?Debit Notes payable for $2,050; credit cash for $2,050.?
. ?Debit cash for $2,000; credit Notes payable for $2,000.?
. ?Debit cash for $2,050; credit Notes payable for $2,050.?
. ?

Question 8
What accounts would be debited and credited to record the following transactions (omit explanations). For example, if a corporation issues stock for $5,000, the entry would be: debit Cash for $5,000 and credit Common (or Capital) stock for $5,000.?a. Sold merchandise for $1,000 cash. The cost of the merchandise was $500.?b. Borrowed $10,000 from a bank.?c. Issued stock for $3,500.?d. Bought equipment costing $25,000. Paid $10,000 in cash and signed a note for the remainder.?e. Paid off the loan in transaction b and paid $200 in interest.??
a. Sold merchandise for $1,000 cash. The cost of the merchandise was $500.
b. Borrowed $10,000 from a bank.
c. Issued stock for $3,500.
d. Bought equipment costing $25,000. Paid $10,000 in cash and signed a note for the remainder.
e. Paid off the loan in transaction b and paid $200 in interest.

Explain your answer in Essay Form:

Question 9
The direct and indirect methods usually will show different amounts of cash flows from??
A) Operating activities?
B) Investing activities?
C) Financing activities?
D) None of the above?

Question 10
Which of the following would be reported as a cash flow from financing activities???
A) Cash receipts from sale of equipment.?
B) Cash receipts from interest on notes receivable.?
C) Cash receipts from dividends on long-term investments.?
D) Cash receipts from the sale of stock.?

Question 11
If wages expense is $40,000 and beginning and ending wages payable balances are $4,000 and $8,000, respectively, cash paid to employeesis??
A) $36,000?
B) $40,000?
C) $44,000?
D) Not determinable from the data given.?

Question 12
If a company had the following cash transactions during the year, what would be the company’s net cash flow provided (used) by operating activities?.

Sales receipts . $900,000
Inventory payments . 650,000
Interest payments . 9,000
Wage payments . 50,000
Dividend receipts . 4,000
Interest receipts . 2,000
Equipment purchased . 65,000
Stock of XYZ Company bought . 15,000
Stock issued . 140,000
Repayment of non-operating loan . 40,000
. ??
A)$906,000?
B)$197,000?
C)$193,000?
D)$217,000?

Question 13
If a company had the following cash transactions during the year, what would be the company’s net increase (decrease) in cash for the year?
Sales receipts . $900,000
Inventory payments . 650,000
Interest payments . 9,000
Wage payments . 50,000
Dividend receipts . 4,000
Interest receipts . 2,000
Equipment purchased . 65,000
Stock of XYZ Company bought . 15,000
Stock issued . 140,000
Repayment of non-operating loan . 40,000
. ?
A)$297,000?
B)$(80,000)?
C)$217,000?
D)Can’t determine from the data given.?

Question 14
A company had the following account balances at the beginning of the month
Cash . $20,000 . . Office equipment . $12,500
Inventory . 37,000 . . Note payable . 5,000
Building . 160,000 . . Common stock . 250,000
Land . 25,500 . . .
During the month, the company had the following transactions.
1. Sold merchandise costing $30,000 for $45,000; $15,000 cash was received immediately and the other $30,000 will be collected in 30 days.
2. Paid off the note of $5,000 plus $300 interest.
3. Bought equipment costing $12,000, paying $2,000 cash and issuing a note for $10,000.
4. Exchanged $2,000 cash and $8,000 in common stock for office equipment costing $10,000.
After journalizing and posting the above transactions, what would be the company’s cash balance?????

Provide your numerical answer:
Question 15
A company had the following account balances at the beginning of the month
Cash . $20,000 . . Office equipment . $12,500
Inventory . 37,000 . . Note payable . 5,000
Building . 160,000 . . Common stock . 250,000
Land . 25,500 . . .
During the month, the company had the following transactions.
1. Sold merchandise costing $30,000 for $45,000; $15,000 cash was received immediately and the other $30,000 will be collected in 30 days.
2. Paid off the note of $5,000 plus $300 interest.
3. Bought equipment costing $12,000, paying $2,000 cash and issuing a note for $10,000.
4. Exchanged $2,000 cash and $8,000 in common stock for office equipment costing $10,000.
After journalizing and posting the above transactions, what would be the company’s net income if these were the only transactions????

Provide your numerical answer:

Category: Uncategorized

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