Exam 2: Reporting Investing and Financing Results on the Balance Sheet

How many of the following statements regarding posting and classification are true? Posting journal entries involves copying the dollar amounts from the journal into the ledger. If a $100 debit is erroneously posted to an account as a $100 credit, the accounts will be out of balance by $100. If a $5,000 liability is misclassified as stockholders' equity then the accounting equation will still balance.

(Multiple Choice)

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Question 101

A company issues $20 million in new stock. The company later uses this money to acquire a building. How many accounts will be affected by these transactions and which particular account names are most likely to be used to record the effects of these transactions?

(Multiple Choice)

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Question 102

The MegaBuck movie studio's name has become famous for adventure movies. Another studio once offered to buy the name for $20 million, but MegaBuck turned down the offer. The MegaBuck balance sheet will show:

(Multiple Choice)

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Question 103

What is the total amount of current liabilities?

(Multiple Choice)

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Question 104

Any item on a balance sheet labeled payable is a liability of that company. Current Assets are listed on the balance sheet in order of how fast they are used up or can be turned into cash. The basic accounting equation must always balance.

(Multiple Choice)

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Question 105

The characteristic shared by all liabilities is that they:

(Multiple Choice)

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Question 106

Which of the following would be listed as a current liability?

(Multiple Choice)

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Question 107

Your company buys a $2 million warehouse paying $300,000 in cash and issuing $1.7 million in promissory notes. This will be posted as:

(Multiple Choice)

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Question 108

Which of the following is true?

(Multiple Choice)

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Question 109

If a company borrows money from a bank and signs an agreement to repay the loan several years from now, in which account would the company report the amount borrowed?

(Multiple Choice)

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Question 110

What is the amount of Total Assets on the Balance Sheet?

(Multiple Choice)

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Question 111

A company uses $100,000 in cash to pay off $100,000 in notes payable. This would result in a:

(Multiple Choice)

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Question 112

Which of the following is not a recordable transaction?

(Multiple Choice)

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Question 113

Which account would be increased by a debit?

(Multiple Choice)

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Question 114

The list of names and reference numbers that the company will use when accounting for transactions is called the Chart of Accounts.

(True/False)

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Question 115

Typical cash flows from investing activities include:

(Multiple Choice)

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Question 116

The standard formatting for a journal entry lists the dollar amounts for:

(Multiple Choice)

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Question 117

What is the amount of current liabilities on the classified balance sheet?

(Multiple Choice)

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Question 118

Which of the following describes the classification and normal balance of the retained earnings account?

(Multiple Choice)

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Question 119

If a company receives $20,000 cash on accounts receivable and uses the cash to pay $20,000 on accounts payable then:

(Multiple Choice)

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Question 120

Showing 101 - 120 of 126

A company issues $20 million in new stock. The company later uses this money to acquire a building. How many accounts will be affected by these transactions and which particular account names are most likely to be used to record the effects of these transactions?

The MegaBuck movie studio's name has become famous for adventure movies. Another studio once offered to buy the name for $20 million, but MegaBuck turned down the offer. The MegaBuck balance sheet will show:

What is the total amount of current liabilities?

Any item on a balance sheet labeled payable is a liability of that company. Current Assets are listed on the balance sheet in order of how fast they are used up or can be turned into cash. The basic accounting equation must always balance.

The characteristic shared by all liabilities is that they:

Which of the following would be listed as a current liability?

Your company buys a $2 million warehouse paying $300,000 in cash and issuing $1.7 million in promissory notes. This will be posted as:

Which of the following is true?

If a company borrows money from a bank and signs an agreement to repay the loan several years from now, in which account would the company report the amount borrowed?

What is the amount of Total Assets on the Balance Sheet?

A company uses $100,000 in cash to pay off $100,000 in notes payable. This would result in a:

Which of the following is not a recordable transaction?

Which account would be increased by a debit?

The list of names and reference numbers that the company will use when accounting for transactions is called the Chart of Accounts.

Typical cash flows from investing activities include:

The standard formatting for a journal entry lists the dollar amounts for:

What is the amount of current liabilities on the classified balance sheet?

Which of the following describes the classification and normal balance of the retained earnings account?

If a company receives $20,000 cash on accounts receivable and uses the cash to pay $20,000 on accounts payable then:

Business Decisions and Financial Accounting

Reporting Operating Results on the Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control and Financial Reporting for Cash and Merchandise Sales

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables, Bad Debt Expense, and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Reporting and Interpreting the Statement of Cash Flows

Measuring and Evaluating Financial Performance

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