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ACTG Midterm 1 | 100% Correct Answers
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An accrual of utilities expense would produce what effect on the balance sheet? - ✔✔Increase liabilities and decrease equity Which of the following items are in the balance sheet? - ✔✔
- inventory
- Accounts Receivable
- Equipment Marks Inc has $2,600 in equity and $1,650 of assets, what is the firm's liabilities? - ✔✔-950 (Assets = Liabilities + Equity 1650 - 2600= - 950) Cash collected on accounts receivable would produce what effect on the balance sheet? - ✔✔Increase assets and decrease assets As inventory and PPE assets on the balance sheet are consumed, they are reflected...? - ✔✔as an expense on the income statement which financial statement would 'Cost of goods sold' most likely appear on? - ✔✔Income statement Which financial statement would 'revenue' most likely appear on? - ✔✔Income statement which financial statement would 'Liabilities' most likely appear on? - ✔✔Balance sheet which financial statement would 'cash from investing activities' most likely appear on? - ✔✔Statement of Cash flow What would be the balance sheet classification for 'Machine'? - ✔✔Long-term Assets
What would be the balance sheet classification for 'Inventory'? - ✔✔Current Assets What would be the balance sheet classification for 'Land'? - ✔✔Long-term assets What would be the balance sheet classification for 'common stock'? - ✔✔Equity What would be the balance sheet classification for 'Building'? - ✔✔Long-term assets What would be the balance sheet classification for 'Income taxes payable in 30 days'? - ✔✔Current Liabilities What would be the balance sheet classification for 'Utilities Payable'? - ✔✔Current Liabilities Compute the missing financial amounts : Assets = 23, Equity = 17, Liabilities =? - ✔✔6,200 (23,200-17,000=6,200) Compute the missing financial amount: Assets: 89, Liabilities: 71, Equity:? - ✔✔17,800 (89,000-71,200=17,800) Arrow Inc., has and ROE of 15.45% and Clip Company has an ROE of 18.3%. Which of the following statements is true? - ✔✔Arrow would likely be able to borrow money at a lower interest rate than Clip would Arrow Inc., has a debt to equity ratio of 0.26 and Clip Company has 0.49. Which of the following statements is true? - ✔✔Arrow would likely be able to borrow money at a lower interest rate than Clip would
An end-of-period journal entry made to reflect accrual accounting is called? - ✔✔An adjusting journal entry When a customer places an order, Curtain specialties requires a deposit equal to the full purchase price. However, the revenue is not recognized until the curtains are completed. During the month, deposits were received of $30,000. The balance in the unearned revenue liability at the beginning of the month was $3,000 and $9,000 at the end of the month. How much revenue did Curtain Specialties recognize during the month? - ✔✔24, Closing the income and expense accounts at the end of the year are recorded to? - ✔✔Retained Earnings Fees received for product or services before those product or service are rendered and recorded as? - ✔✔Deferred revenue The total of the trial balance should equal? - ✔✔ZERO Financing Activities include - ✔✔Common Stock sale and Dividends Which of the following is not disclosed in a statement of cash flows? - ✔✔A transfer of cash to cash equivalent investment which of the following events appears in the cash flows from financing activities section of the statement of cash flows? - ✔✔Cash purchase of treasure stock The statement of cash flows helps? - ✔✔To understand trends in the firm's liquidity and asses solvency The total of all of the General Ledger accounts should be ...? - ✔✔Zero examples of cash equivalents are: - ✔✔Money Market accounts and treasury bills Net income is:? - ✔✔Cash flow from operating activities
Decrease in accounts receivable is - ✔✔Cash flow from operating activities Increase in Accounts Payable is - ✔✔Cash flow from operating activities Common Stock issued is - ✔✔Cash flow from financing activities Acquisition of a building is - ✔✔Cash flow from investing activities Dividend payment is - ✔✔cash flow from financing activities Sale of Fixture or Equipment is - ✔✔Cash flow from investing activities Cash from a notes payable is - ✔✔Cash flow from financing activities Payment on a notes payable is - ✔✔Cash flow from financing activities All companies have a fiscal year ending on December 31. T/F? - ✔✔False An accrued expense is one that has been incurred but not yet paid. T/F? - ✔✔True Assets such as inventory and property, plant, and equipment are reported on the balance sheet at their current market value. T/F? - ✔✔False adjusting entries always impact the income statement and the cash amount. T/F? - ✔✔False Purchase 15,000 of Equipment on credit - ✔✔Debit: Equipment 15, Credit: Accounts Payable 15, Employees earn 4,500 in wages that are accrued - ✔✔debit: wages expense 4,
