Reference no: EM132469971
Point 1. Who is responsible for preparing a company's financial statements?
- The Financial Accounting Standards Board
- The audit committee of the Board of Directors
- Company management
- The company's tax department
- The company's external auditor
point 2. Which of the following items reduces Net Income? (check all that apply)
Liabilities
Expenses
Dividends
Revenues
Stockholders' Equity
point 3. What are Ending Retained Earnings in the table below?
Total Assets300
Total Liabilities120
Total Stockholder's EquityBeginning Retained Earnings30
Ending Retained Earnings?
Dividends10R
evenues190
Expenses140
Net IncomeCash50
Not enough information
50
70
20
-20
point 4. Which of the following transactions violates the balance sheet equation? (check all that apply)
- Increase cash and increase an expense
- Increase cash and reduce a liability
- Increase cash and reduce inventory (a non-cash asset)
- Reduce cash and reduce a liability
- Increase revenues and reduce a liability
point 5. Which of the following are assets? (check all that apply)
- Accounts Receivable
- Common Stock
- Cash
- Accounts Payable
- Retained Earnings
point 6. Which of the following accounts would be increased with a Credit? (check all that apply)
- Revenue
- Inventory
- Notes Payable
- Additional Paid-in Capital
- Prepaid Rent
point 7. Which of these journal entries represent paying cash to buy an asset? (check all that apply)
Dr. Cash 300
Cr. Inventory 300
Dr. Cash 2000
Cr. Common Stock 2000
Dr. Truck 5000
Cr. Cash 5000
Dr. Prepaid Insurance 500
Cr. Cash 500
Dr. Advances from Customers 50
Cr. Cash 50
point 8. Which journal entry reflects the following transaction?:
BOC bought a $300,000 building with $50,000 cash and a mortgage taken from a bank.
Dr. Building 300,000
Cr. Mortgage 250,000
Cr. Cash 50,000
Dr. Mortgage 250,000
Dr. Cash 50,000
Cr. Building 300,000
Dr. Cash 50,000
Cr. Building 300,000
Dr. Building 300,000
Cr. Cash 50,000
Dr. Building 300,000
Cr. Cash 300,000