Multiple Choice Questions 1. Another name for the balance sheet is the a. Statement of financial position

Question:

Multiple Choice Questions
1. Another name for the is the
a. Statement of financial position
b. Statement of operations.
c. Statement of profit and loss.
d. Statement of earnings.
2. Pinker began the year with cash of $30,000 and a computer that cost $25,000. During the year Pinker earned sales revenue of $135,000 and had the following expenses: salaries, $57,000; rent, $11,000; and utilities, $4,000. At year-end Pinkers cash balance was down to $18,000. How much net income (or net loss) did Pinker experience for the year?
a. ($12,000)
b. $135,000
c. $63,000
d. $123,000
3. Advanced Instruments had retained earnings of $155,000 at December 31, 2009. Net income for 2010 totaled $100,000, and dividends for 2010 were $25,000. How much retained earnings should Advanced report at December 31, 2010?
a. $255,000
b. $180,000
c. $230,000
d. $155,000
4. Net income appears on which financial statement(s)?
a. Income statement
b. Statement of retained earnings
c. Both a and b
5. Cash paid to purchase a building appears on the statement of cash flows among the
a. Stockholders equity.
b. Investing activities.
c. Financing activities.
d. Operating activities.
6. The stockholders equity of Diakovsky Company at the beginning and end of 2010 totaled $15,000 and $20,000, respectively. Assets at the beginning of 2010 were $27,000. If the liabilities of Diakovsky Company increased by $9,000 in 2010, how much were total assets at the end of 2010? Use the accounting equation.
a. $45,000
b. $34,000
c. $50,000
d. $41,000
7. Robbin Company had the following on the dates indicated:

Robbin had no stock transactions in 2010 and, thus, the change in stockholders equity for 2010 was due to net income and dividends. If dividends were $55,000, how much was Robbins net income for 2010? Use the accounting equation and the statement of retained earnings.
a. $185,000
b. $245,000
c. $155,000
d.$215,000

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