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?

1. Income statement
2. Statement of retained earnings
3. Balance sheet
4. Statement of cash flows
5. None of the above

5. Which of the following financial statements is a period statement?

1. Income statement
2. Statement of retained earnings
3. Statement of cash flows
4. All of the above
5. 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

Answer rating: 100% (QA)

ANSWER The correct option is as follows Question No1 OPTION A Is Correct Income Statement presents R... View the full answer