Question 1

For each statement listed below, state whether it is correct or not.
-Goodwill is common on many major U.S.companies' balance sheets because of the numerous mergers and acquisitions that occur.

Accepted Answer

A) True 
 B)False

Question 2

The following is the balance sheet of Lamont Corporation immediately prior to deciding how to finance the purchase of a $300 addition to its building.
  The bonds payable contract agreement requires current assets to be twice as much as current liabilities.Assume the $300 addition to the building is to be paid in cash and financed by issuing more stock.Calculate and explain the maximum cash that Lamont can pay and still honor its debt agreement.

Accepted Answer

The answer of The following is the balance sheet of...

Question 3

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.
-Contributed capital

Accepted Answer

A)  Amount of net income or loss less distributions to the owners of the company 
B)  Must be settled within one year 
C)  Converted to cash within one year 
D)  Amount of owners' investment 
E)  Portion of equity to which dividends reduce
F) Land used as a site for production

Question 4

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.
-Trademarks

Accepted Answer

A)  Current assets 
B)  Long-term investments 
C)  Property, plant, and equipment 
D)  Intangible assets 
E)  Current liabilities
F) Long-term liabilities
G) Shareholders' equity
H) Not disclosed on the balance sheet

Question 5

For each statement listed below, state whether it is correct or not
-Financing activities involve the sale of goods and services of a business.

Accepted Answer

A) True 
 B)False

Question 6

For items select the appropriate section of the balance sheet in which the item would be reported.
-Cost of a building expected to be used by the company for ten more years.

Accepted Answer

A)  Long-term Investments 
B)  Property, Plant, & Equipment 
C)  Current Liabilities 
D)  Long-term Liabilities 
E)  Shareholders' Equity

Question 7

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 investing activities?

Accepted Answer

A)  3,4,7,8 
B)  1,4,7 
C)  4,7 
D)  3,8

Question 8

Given below are several accounts from Deere Company's accounting records.

Net income for the year was $35,000.How much is total shareholders' equity at the end of the year?

Accepted Answer

A)  $86,000. 
B)  $82,000. 
C)  $87,000. 
D)  $77,000.

Question 9

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.
-Amount invested by equity investors

Accepted Answer

A)  Assets 
B)  Liabilities 
C)  Contributed capital 
D)  Retained earnings 
E)  Revenues
F) Expenses
G) Net income
H) Dividends

Question 10

For each statement listed below, state whether it is correct or not
-Dividends payable, Inventories, Contributed capital, and Accumulated Depreciation all appear on a company's balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

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 asset

Accepted Answer

A)  Amount of net income or loss less distributions to the owners of the company 
B)  Must be settled within one year 
C)  Converted to cash within one year 
D)  Amount of owners' investment 
E)  Portion of equity to which dividends reduce
F) Land used as a site for production

Question 12

For each statement listed below, state whether it is correct or not.
-Property differs from plant and equipment in that property has no physical substance, while plant and equipment does.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A)  $5,925 
B)  $8,741 
C)  $12,440 
D)  $5,282

Question 14

Below are several accounts from Nortec Company's accounting records.

The amount of retained earnings at the end of the year is

Accepted Answer

A)  $34,000. 
B)  $40,000. 
C)  $52,000. 
D)  $64,000.

Question 15

Given below are several accounts from Nicholas Company's accounting records.

Net income for the year was $20,000.How much is total shareholders' equity at the end of the year?

Accepted Answer

The answer of Given below are several accounts from Nicholas...

Question 16

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.
-The net growth during a period of time measured as revenues less expenses

Accepted Answer

A)  Assets 
B)  Liabilities 
C)  Contributed capital 
D)  Retained earnings 
E)  Revenues
F) Expenses
G) Net income
H) Dividends

Question 17

Artec Corporation has total assets, current liabilities, and long-term liabilities of $36,000, $2,000, and $13,000, respectively.If Artec purchases equipment for $4,000 for cash, how much would shareholders' equity be?

Accepted Answer

A)  $21,000 
B)  $10,000 
C)  $24,000 
D)  $11,000

Question 18

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.
-Investment in bonds

Accepted Answer

A)  Current assets 
B)  Long-term investments 
C)  Property, plant, and equipment 
D)  Intangible assets 
E)  Current liabilities
F) Long-term liabilities
G) Shareholders' equity
H) Not disclosed on the balance sheet

Question 19

At the end of 2009, Corey Company has total assets and liabilities at $40,000 and $13,000, respectively.Corey reported net income for 2010 in the amount of $10,000.How much is shareholders' equity at the end of 2010?

Accepted Answer

A)  $20,000 
B)  $22,000 
C)  $31,000 
D)  $37,000

Question 20

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 financing activities?

Accepted Answer

A)  1,4,7 
B)  1,7,8 
C)  3,8 
D)  1,3,4,7,8

Exam 2: The Financial Statementsa Closer Look

For each statement listed below, state whether it is correct or not. -Goodwill is common on many major U.S.companies' balance sheets because of the numerous mergers and acquisitions that occur.

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. -Contributed capital

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. -Trademarks

For each statement listed below, state whether it is correct or not -Financing activities involve the sale of goods and services of a business.

For items select the appropriate section of the balance sheet in which the item would be reported. -Cost of a building expected to be used by the company for ten more years.

Given below are several accounts from Deere Company's accounting records. Net income for the year was $35,000.How much is total shareholders' equity at the end of the year?

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. -Amount invested by equity investors

For each statement listed below, state whether it is correct or not -Dividends payable, Inventories, Contributed capital, and Accumulated Depreciation all appear on a company's balance sheet.

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 asset

For each statement listed below, state whether it is correct or not. -Property differs from plant and equipment in that property has no physical substance, while plant and equipment does.

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

Below are several accounts from Nortec Company's accounting records. The amount of retained earnings at the end of the year is

Given below are several accounts from Nicholas Company's accounting records. Net income for the year was $20,000.How much is total shareholders' equity at the end of the year?

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. -The net growth during a period of time measured as revenues less expenses

Artec Corporation has total assets, current liabilities, and long-term liabilities of $36,000, $2,000, and $13,000, respectively.If Artec purchases equipment for $4,000 for cash, how much would shareholders' equity be?

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. -Investment in bonds

At the end of 2009, Corey Company has total assets and liabilities at $40,000 and $13,000, respectively.Corey reported net income for 2010 in the amount of $10,000.How much is shareholders' equity at the end of 2010?