The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise.
Retained Earnings $ 52,000
Supplies 37,000
Equipment 72,000
Accounts Receivable 8,600
Deferred Revenue 6,000
Accounts Payable 15,000
Common Stock 25,000
Notes Payable (due in 18 months) 35,000
Interest Payable 7,000
Cash 22,400
A) $63,000.
B) $28,000.
C) $45,600.
D) $22,000.
Answer: B
A) Income statement.
B) Statement of cash flows.
C) Balance sheet.
D) Statement of stockholders' equity.
Answer: C
A) Interest Payable.
B) Deferred Revenue.
C) Accounts Payable.
D) Salaries Payable.
Answer: B
A) If the company is likely to be profitable in future periods.
B) If the company is profitable in the current period.
C) If current assets are large enough to pay current liabilities.
D) If dividends have been paid to stockholders.
Answer: C
A) An amount borrowed less than one year ago.
B) An amount due to an employee.
C) An amount due within one year.
D) A small amount due.
Answer: C
A) Current assets.
B) Investments.
C) Intangible assets.
D) Property, plant, and equipment.
Answer: C
Consider the following items:
Land
Accounts Receivable
Notes Payable (due in three years)
Accounts Payable
Retained Earnings
Prepaid Rent
Deferred Revenue
Buildings
Notes Payable (due in six months)
Equipment
A) Two.
B) Three.
C) Four.
D) Five.
Answer: B
A) Current assets.
B) Current liabilities.
C) Long-term assets.
D) Revenues.
Answer: C
A) Current assets.
B) Investments.
C) Intangible assets.
D) Property, plant, and equipment.
Answer: D
The following financial information is from Shovels Construction Company:
Accounts Payable $ 15,000
Buildings 80,000
Cash 10,500
Accounts Receivable 9,500
Sales Tax Payable 4,500
Retained Earnings 47,500
Supplies 40,000
Notes Payable (due in 18 months) 35,000
Interest Payable 3,000
Common Stock 35,000
A) $20,000.
B) $60,000.
C) $140,000.
D) $175,000.
Answer: B
A) How quickly the asset can be converted to cash.
B) The magnitude of the asset's account balance.
C) Whether cash was paid for the asset at the time of acquisition.
D) The accuracy of the balance being reported.
Answer: A
A) Assets that must be paid for within 12 months.
B) Assets that will be used up or converted to cash within 12 months.
C) Assets that will be used for many years.
D) Any assets that were purchased for cash.
Answer: B
A) $10,000.
B) $32,000.
C) $42,000.
D) $22,000.
Answer: C
A) Shows only current assets and current liabilities
B) Shows changes in assets, liabilities, revenues and expenses
C) Contains confidential information
D) Shows subtotals for current assets and current liabilities
Answer: D
A) Statement of cash flows.
B) Income statement.
C) Statement of stockholders' equity.
D) Balance sheet.
Answer: D
A) $60,000.
B) $35,000.
C) $50,000.
D) $45,000.
Answer: C
A) $10,000.
B) $35,000.
C) $39,000.
D) $31,000.
Answer: D
A) Net income from the income statement.
B) The amount of stock issued in the current period.
C) Dividends declared to stockholders in the current period.
D) All of the other answers are correct.
Answer: D
