Sunday Company reports the following information on December 31,2014: \[\begin{array} { l l } \text { Cash } & \$ 20,000 \\ \text { Accounts receivable } & 112,000 \\ \text { Accounts payable } & 91,000 \\ \text { Accrued wages payable } & 6,000 \\ \text { Unearned revenue } & 2,000 \\ \text { Paid-in capital } & 59,000 \\ \text { Retained earnings } & 80,000 \\ \text { Inventory } & 30,000 \\ \text { Prepaid rent } & 4,000 \\ \text { Equipment (net) } & 12,000 \end{array}\] What are total assets at December 31,2014?

A) $162,000 B) $166,000 C) $178,000 D) $180,000 A) $162,000 B) $166,000 C) $178,000 D) $180,000

Hope Company has the following data available: $\begin{array} { l } \text {Retained Earnings, January 1, 2011 }&\$12,000 \\ \text {Net income for the year ending December 31,2011 }&\$3,000 \\ \text {Dividends declared in 2011 }&\$2,000 \\ \text {Paid-in Capital, January 1, 2011 }&\$ 50,000\\ \text { Total liabilities, January 1, 2011}&\$ 40,000\\ \end{array}$ What is the retained earnings balance on December 31,2011?

A) $12,000 B) $13,000 C) $14,000 D) $63,000 A) $12,000 B) $13,000 C) $14,000 D) $63,000

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

The following transactions occurred at Clarkson Company: 1.The company acquired $200 of inventory on credit. 2.The company rendered services billed at $100 on account. 3.The company paid $175 in accounts payable. 4.The company's owner invested $375 in cash. 5.The company acquired equipment costing $575 on account. 6.The company paid $25 for inventory. Required: In the chart below,indicate if each transaction increases,decreases or has no effect on Assets,Liabilities and Stockholders' Equity. Transaction Assets Liabilities Stockholders' Equity Increase Increase No effect 1. 2. 3. 4. 5. 6.

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(Essay)

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Question 1

Correct Answer:

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$\begin{array} { l l l l } \hline \text { Transaction } & \text { Assets } & \text { Liabilities } & \text { Stockholders' Equity } \\\hline 1.&\text { Increase } & \text { Increase } & \text { No effect } \\\hline 2.&\text { Increase } & \text { No effect } & \text { Increase } \\\hline 3.&\text { Decrease } & \text { Decrease } & \text { No effect } \\\hline 4.&\text { Increase } & \text { No effect } & \text { Increase } \\\hline 5.&\text { Increase } & \text { Increase } & \text { No effect } \\\hline 6.&\text { Increase and } & \text { No effect } & \text { No effect }\\&\text { Decrease }\end{array}$

In a partnership,a partner's capital account is increased by ________.

Free

(Multiple Choice)

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Question 2

Correct Answer:

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D

The income statement measures performance over a given amount of time.

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(True/False)

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Question 3

Correct Answer:

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True

A company uses the going concern convention when it is in a near-bankrupt situation.

(True/False)

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Question 4

An example of an implicit transaction is cash received on account.

(True/False)

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Question 5

Sunday Company reports the following information on December 31,2014: Cash \ 20,000 Accounts receivable 112,000 Accounts payable 91,000 Accrued wages payable 6,000 Unearned revenue 2,000 Paid-in capital 59,000 Retained earnings 80,000 Inventory 30,000 Prepaid rent 4,000 Equipment (net) 12,000 What are total assets at December 31,2014?

(Multiple Choice)

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Question 6

Jackson Company collected $1,200 on account.Jackson will ________.

(Multiple Choice)

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Question 7

Which financial statement discloses the economic resources of the organization and the claims against those resources?

(Multiple Choice)

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Question 8

The excess of revenues over expenses is called a net profit.

(True/False)

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Question 9

The acquisition of inventory for cash will ________.

(Multiple Choice)

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Question 10

Increases in revenues will .Increases in expenses will .

(Multiple Choice)

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Question 11

A sole proprietorship has owner's equity account(s).A partnership with three partners has owners' equity account(s).

(Multiple Choice)

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Question 12

On June 1,2012,a company borrows $100,000 on a 10% note due to a bank in one year.What amount of interest expense is reported for the year ending December 31,2012?

(Multiple Choice)

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Question 13

The accounting convention of ________ permits a company to immediately expense assets with long useful lives and small dollar costs.

(Multiple Choice)

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Question 14

Cash collected from customers before goods are delivered is known as ________.

(Multiple Choice)

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Question 15

Decreases in ownership claims arising from the delivery of goods are called ________.

(Multiple Choice)

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Question 16

Revenue and expense accounts are permanent stockholders' equity accounts.

(True/False)

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Question 17

Hope Company has the following data available: Retained Earnings, January 1, 2011 \1 2,000 Net income for the year ending December 31,2011 \3 ,000 Dividends declared in 2011 \2 ,000 Paid-in Capital, January 1, 2011 \ 50,000 Total liabilities, January 1, 2011 \ 40,000 What is the retained earnings balance on December 31,2011?

(Multiple Choice)

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Question 18

A magazine publisher sells annual subscriptions for magazines.The publisher requires cash payment before the magazines are sent out.When the first monthly issue is sent out,the company will ________.

(Multiple Choice)

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Question 19

Dividends paid are considered an expense on the income statement.

(True/False)

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Question 20

In a partnership,a partner's capital account is increased by ________.

The income statement measures performance over a given amount of time.

A company uses the going concern convention when it is in a near-bankrupt situation.

An example of an implicit transaction is cash received on account.

Jackson Company collected $1,200 on account.Jackson will ________.

Which financial statement discloses the economic resources of the organization and the claims against those resources?

The excess of revenues over expenses is called a net profit.

The acquisition of inventory for cash will ________.

Increases in revenues will .Increases in expenses will .

A sole proprietorship has owner's equity account(s).A partnership with three partners has owners' equity account(s).

On June 1,2012,a company borrows $100,000 on a 10% note due to a bank in one year.What amount of interest expense is reported for the year ending December 31,2012?

The accounting convention of ________ permits a company to immediately expense assets with long useful lives and small dollar costs.

Cash collected from customers before goods are delivered is known as ________.

Decreases in ownership claims arising from the delivery of goods are called ________.

Revenue and expense accounts are permanent stockholders' equity accounts.

A magazine publisher sells annual subscriptions for magazines.The publisher requires cash payment before the magazines are sent out.When the first monthly issue is sent out,the company will ________.

Dividends paid are considered an expense on the income statement.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 15: Basic Accounting: Concepts, techniques, and Conventions

In a partnership,a partner's capital account is increased by ________.

The income statement measures performance over a given amount of time.

A company uses the going concern convention when it is in a near-bankrupt situation.

An example of an implicit transaction is cash received on account.

Jackson Company collected $1,200 on account.Jackson will ________.

Which financial statement discloses the economic resources of the organization and the claims against those resources?

The excess of revenues over expenses is called a net profit.

The acquisition of inventory for cash will ________.

Increases in revenues will ________.Increases in expenses will ________ .

A sole proprietorship has ________ owner's equity account(s).A partnership with three partners has ________ owners' equity account(s).

On June 1,2012,a company borrows $100,000 on a 10% note due to a bank in one year.What amount of interest expense is reported for the year ending December 31,2012?

The accounting convention of ________ permits a company to immediately expense assets with long useful lives and small dollar costs.

Cash collected from customers before goods are delivered is known as ________.

Decreases in ownership claims arising from the delivery of goods are called ________.

Revenue and expense accounts are permanent stockholders' equity accounts.

A magazine publisher sells annual subscriptions for magazines.The publisher requires cash payment before the magazines are sent out.When the first monthly issue is sent out,the company will ________.

Dividends paid are considered an expense on the income statement.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Increases in revenues will .Increases in expenses will .

A sole proprietorship has owner's equity account(s).A partnership with three partners has owners' equity account(s).