Exam 2: A Closer Look at the Financial Statements

Baron Company has six major headings in its income statement, which include Sales, Fees Earned, Other Revenues, Cost of Goods Sold, Operating Expenses, and Other Expenses. Below are some of the income statement accounts for Baron: Which of these would be found under the heading "Operating Expenses"?

The amount reported on a company's balance sheet as retained earnings is the same as the amount reported on the company's:

The following information is shown on Morris Company's balance sheet. Answer the questions that follow. Cash \ 12,000 Inventory 15,000 Equipment 80,000 Accounts Payable 15,000 Bonds Payable 45,000 Contributed capital 30,000 A. How much did debt investors provide to Morris Company? B. What is the amount of money provided by equity investors to Morris Company? C. How much would be classified as property, plant, and equipment?

The major accounting difference between interest expense for creditors and dividends declared and paid to shareholders is that interest expense:

Which group of financial statement users would be most concerned with the amount of a company's total current assets and current liabilities?

Why would a company use a notes receivable account?

Use the information that follows concerning Ulrich Computer for the year ending December 31, 2018 for problems Several accounts and amounts from the financial statements of Ulrich Computer appear below for the year ending December 31, 2018. Cash \ 11,000 Sales Revenue 140,000 Notes Receivable, 6-month 90,000 Cost of goods sold 60,000 Taxes Payable 31,000 Salaries Expense 8,000 Accounts Receivable 34,000 Dividends 42,000 Equipment 150,000 Accounts Payable 8,000 Contributed Capital 30,000 Retained Earnings 40,000 Rent and Utilities Expense 4,000 Income Tax Expense 20,000 Inventory 21,000 -Calculate total expenses for Ulrich.

The most common revenue account is:

If cash inflows from operating activities were $2,000, cash outflows for financing activities were $2,500, and the net increase in cash was $4,000, how much are cash flows from investing activities?

Current assets are:

Which one of the following is an asset?

Which one of the following groups of accounts contains only current assets?

Seuss Company determined its total sales were $500,000, salaries expense was $210,000, dividends paid were $15,000, rent expense was $25,000, other operating expenses were $13,000, and customers still owed $4,000 at the end of the year. How much is net income for the year?

Valley Company has cash, current liabilities, and long-term liabilities of $120,000, $30,000, and $31,000, respectively. Valley has no current assets other than cash. How much cash can Valley use to acquire equipment so that amount of current assets is double the amount of current liabilities?

Long-term investments can include all of the following except:

Most investors believe that the statement of cash flows is

Which account is associated with borrowing money?

Use the information that follows concerning Ulrich Computer for the year ending December 31, 2018 for problems Several accounts and amounts from the financial statements of Ulrich Computer appear below for the year ending December 31, 2018. Cash \ 11,000 Sales Revenue 140,000 Notes Receivable, 6-month 90,000 Cost of goods sold 60,000 Taxes Payable 31,000 Salaries Expense 8,000 Accounts Receivable 34,000 Dividends 42,000 Equipment 150,000 Accounts Payable 8,000 Contributed Capital 30,000 Retained Earnings 40,000 Rent and Utilities Expense 4,000 Income Tax Expense 20,000 Inventory 21,000 -Calculate Ulrich's total current assets.

Which assets on a company's balance sheet have no physical substance? Explain.