Patriot Corporation purchased manufacturing equipment with an expected useful life of five years. The purchase of the machinery would be shown as
A) an expense on the balance sheet.
B) an expense on the income statement.
C) an asset on the balance sheet.
D) both an expense and an asset.
Which of the following best describes a balance sheet?
A) Reports cash receipts and cash disbursements for a specific accounting period
B) Reports investment activities for a specified accounting period
C) Reports revenues and expenses for a specific accounting period
D) Reports the amount and composition of assets and liabilities at a specified point in time
Which of the following would NOT be included as an asset on a corporate balance sheet?
A) Accounts receivable
B) Common stock
C) Inventory
D) Buildings
Which of the following would NOT be included as a liability in a corporate balance sheet?
A) Notes payable
B) Accounts payable
C) Bonds
D) Accumulated Depreciation
Which of the following would NOT be included as equity in a corporate balance sheet?
A) Cash
B) Paid in capital
C) Retained earnings
D) Common stock
When a company pays a dividend on common stock, it appears as
A) an expense on the income statement.
B) a reduction in the amount of retained earnings.
C) a current liability on the balance sheet.
D) dividend payments have no effect on the financial statements.
