Accounting assignment

Name; Class: Date; Chapter 1 and 2 7. Which of the following terms characterizes the time period between the investment of cash in merchandise and the collection ofcash from the sale of that merchandise? a. Operating cycle b. Natural business year c. Accounting period (1. Fiscal period 8. Native Dave's Consultants had the following balance sheet amounts at the beginning ofthe year: Total assets $400,000 Total owner's equity 150,000 During the year, total assets increased by $100,000 and total liabilities increased by $40,000. The company also paid $30,000 in dividends. No other transactions occurred except revenues and expenses. How much is net income for the year? a. $30,000 b. $60,000 c. $70,000 d. $90,000 Moore Industries Moore Industries began operations on January 2, 2016, with an investment of $50,000 by each ofits two stockholders. Net income for its first year of business was $240,000. Moore Industries paid a total of $100,000 in dividends to its stockholders during the year. 9. Read the information about Moore Industries. If the company's revenues were $500,000 for the year ended December 31, 2016, how much were total expenses? a. $160,000 b. $260,000 c. $640,000 d. $740,000 10. Which one of the following is an investing activity ofa business? a. Paying for purchases of inventory b. Issuing stock for cash c. Borrowing money from a bank d. Purchasing a manufacturing plant for cash 11. Marcos Company reported the following items on its financial statements for the year ending December 31, 2016: Sales $ 560,000 Cost of goods sold $400,000 Salary expense 40,000 Interest expense 30,000 Dividends 20,000 Income tax expense 25,000 Page 2