1 . An income statement: A) Reports the results of operations for a period B) Reports on...
Question:
1. An income statement:
A) Reports the results of operations for a period
B) Reports on the events causing a change in stockholders’ equity during a period
C) Presents a firm’s assets, liabilities, and stockholders’ equity on a given date
D) Reports cash in flows and outflows during a period
E) None of the above
2. A balance sheet:
A) Reports the results of operations for a period
B) Reports on the events causing a change in stockholders’ equity during a period
C) Presents a firm's assets, liabilities, and stockholders’ equity as of a given date
D) Reports cash in flows and outflows during a period
E) None of the above
3. What categories of cash flows are presented in a statement of cash flows?
A) Operating and non-operating
B) Receipts and disbursements
C) Financial and non-financial
D) Operating, investing, and financing
E) None of the above
4. Which of the following financial statements is a position statement?
- Income statement
- Statement of retained earnings
- Balance sheet
- Statement of cash flows
- None of the above
5. Which of the following financial statements is a period statement?
- Income statement
- Statement of retained earnings
- Statement of cash flows
- All of the above
- None of the above
Marvin’s Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $70,000 in expenses, and the company paid dividends of $15,000.
6. The net income reported by Marvin's Mechanical Repair Shop for the year was:
A) $180,000
B) $ 40,000
C) $ 50,000
D) $ 30,000
E) None of the above
7. Marvin’s balance of stockholders’ equity at the start of the year was:
A) $ 2,000
B) $ 20,000
C) $100,000
D) $ 15,000
E) None of the above
8. Marvin’s balance of retained earnings at the end of the year was:
A) $50,000
B) $42,000
C) $33,000
D) $70,000
E) None of the above
9. If Marvin’s Mechanical Repair Shop ends the year with total assets of $80,000, and total liabilities of $35,000, what must be the amount of common stock issued during the year?
A) $ 10,000
B) $ 14,000
C) $ 5,000
D) $ 3,000
E) None of the above
USE THE FOLLOWING INFORMATION FOR QUESTION10
The Williams Model Aircraft Repair Shop started the year with total assets of $180,000, total liabilities of $120,000, and retained earnings of $54,000. During the year, the business recorded $300,000 in repair revenues, $210,000 in expenses, and the company paid dividends of $45,000.
10. The net income reported by The Williams Model Aircraft Repair Shop for the year was:
A) $ 90,000
B) $ 540,000
C) $ 120,000
D) $ 150,000
E) None of the above