Exam 1: Introduction to Financial Statements

Tucker Tutoring Service Company recorded the following cash transactions for the year: Paid $55000 for salaries. Paid $7000 to purchase office equipment. Paid $6000 for utilities advertising and supplies. Paid $12000 for rent. Paid $18000 in dividends. Collected $125000 from customers. Borrowed $20000 from the bank. What was the company's net cash provided (used) by investing activities?

The company's policy toward dividends and growth could best be determined by examining the

Which financial statement is prepared first?

Liabilities of a company are owed to

One way of stating the accounting equation is: Assets + Liabilities = Stockholders' Equity.

Payments to owners are operating activities.

Elston Company compiled the following financial information as of December 31 2022: Service revenue \ 840,000 Common stock 180,000 Equipment 240,000 Operating expenses 750,000 Cash 210,000 Dividends 60,000 Supplies 30,000 Accounts payable 120,000 Accounts receivable 300,000 Retained earnings, 1/1/22 450,000 Elston's retained earnings on December 31 2022 are

The majority of U.S.business is transacted by proprietorships.

All of the following are interrelationships that are important to understand when preparing financial statements except

Retained earnings is

The retained earnings statement

Tucker Tutoring Service Company recorded the following cash transactions for the year: Paid $55000 for salaries. Paid $7000 to purchase office equipment. Paid $6000 for utilities advertising and supplies. Paid $12000 for rent. Paid $18000 in dividends. Collected $125000 from customers. Borrowed $20000 from the bank. What was the company's net cash provided (used) by operating activities?

Issuing shares of stock in exchange for cash is an example of a(n)

Benedict Company compiled the following financial information as of December 31 2022: Service revenue \ 1,120,000 Common stock 240,000 Equipment 320,000 Operating expenses 1,000,000 Cash 280,000 Dividends 80,000 Supplies 40,000 Accounts payable 160,000 Accounts receivable 400,000 Retained earnings, 1/1/22 600,000 Benedict's assets on December 31 2022 are

The heading for the income statement might include the line "As of December 31 20xx."

Which of the following statements is true?

Henson Company began the year with retained earnings of $380000.During the year the company recorded revenues of $500000 expenses of $380000 and paid dividends of $40000.What was Henson's retained earnings at the end of the year?

An income statement shows

A different set of financial statements usually is prepared for each user.

Stockholders' equity is comprised of