Exam 2: The Financial Statementsa Closer Look

For each financial statement item listed below, identify in which balance sheet category (listed in a through h) it should be reported.You may use each letter more than once or not at all. -Short-term investments

For each statement listed below, state whether it is correct or not. -Yard Mart Company owes $4,700.If Yard Mart uses assets listed in the current asset section of the balance sheet to pay off this debt next year, Yard Mart must report the $4,700 in the current liability section of its balance sheet.

For each financial statement item listed in below, identify in which balance sheet category (listed in a through h) it should be reported.You may use each letter more than once or not at all. -Delivery truck

For each statement listed below, state whether it is correct or not. -Martinez, Inc.issued common stock for cash.This is an investing activity.

Below are several amounts from Netcom Company's accounting records.Answer the questions that follow. Total assets, end of year $190,000 Total liabilities, end of year 30,000 Contributed capital, end of year 20,000 Retained earnings, beginning of year 65,000 Dividends for the period 15,000 Net income 32,000 A. Calculate the amount of retained earnings at the end of the year. B. If revenue amounts to $220,000, how much is 'total expenses'? C. How do you know the company has been profitable since it began operations?

At the beginning of 2010, Waterford Company sold stock and began operations.Information from Waterford's accounting records for the year ending December 31, 2010, follows: A.Circle the names of any accounts above that would not be reported on the income statement. B.Determine the amount of net income.

For each financial statement item listed below, identify the best description by selecting from items a through f below.You may use each letter more than once or not at all.Write the letter 'X' for each item for which no description is listed. -Current liability

For each item numbered below, identify which accounting element(s) listed in A through H each statement describes.You may use each letter more than once or not at all. -Inflow of assets from the regular operating activities

For each financial statement item listed below, identify in which balance sheet category (listed in a through h) it should be reported.You may use each letter more than once or not at all. -Accumulated depreciation

Below is all of the account information from Neville Company's balance sheet, with the exception of Retained Earnings. Using this information, please calculate the following: A.The total amount of retained earnings for Neville Company. B.The total amount of shareholders' equity for the company at the end in the year.

For each statement listed below, state whether it is correct or not -The asset sections found on a classified balance sheet include current assets, current liabilities, and owners' equity.

The information below was taken from the 2010 annual report of Jena Corp. -Which of the following is the missing amount for the ending cash balance for 2009?

For each statement listed below, state whether it is correct or not -The income statement is often referred to as a statement of financial condition.

For each statement listed below, state whether it is correct or not. -Current assets of a major retailer, such as Sears, typically exceed 50 percent of total assets because of merchandise inventory.

For each item numbered below, identify which accounting element(s) listed in A through H each statement describes.You may use each letter more than once or not at all. -Obligations which must be met at some future date

Darwin Company has current assets, shareholders' equity, current liabilities, and long-term liabilities of $8,000, $24,000, $4,000, and $8,000, respectively.How much are long-term assets?

The following information is shown on Foreman Company's balance sheet.Answer the questions that follow. A. How much did debt investors provide to Foreman Company? B. What is the amount of money provided by equity investors to Foreman Company? C. How much would be classified as property, plant, and equipment?

If the beginning and ending balances in retained earnings are $12,000 and $10,000, respectively, and dividends during the year are $10,000, then net income for the year is

The following are account balances of Marcia Company on 12/31/10. Prepare a classified balance sheet for Marcia Company on December 31, 2010.

Garrison Corporation has the following transactions: 1)Dividends are paid to the shareholders. 2)A utility bill for July is paid in August. 3)A new warehouse facility is purchased 4)Principal payments on outstanding debt are paid. 5)Employees wages are paid. 6)Forty-five units of inventory are sold for $100 each 7)Common stock is issued for $230,000 in cash. 8)A delivery van used for 5-years is sold for $12,000, which is its book value. - Which of the above transaction(s) are examples of operating activities?