1. The following information was taken from the records of Tellers Corporation for the month ended December 31, 2017:

Advertising expense		$20,625
Income tax expense		13,095
Accounts payable		13,450
Dividends paid		14,125
Retained earnings (12/1/17)		57,860
Consulting fees revenue		93,550
Rent expense		11,728
Supplies expense		16,917

Given the above information, net income is

a.$45,110

b.$11,385

c.$35,310

d.$31,185

2.

The following information was taken from Sand Wraith Companys accounting records:

Sales	10,000,000
Decrease in goods in process inventory	200,000
Decrease in raw materials inventory	350,000
Increase in finished goods	500,000
Raw materials purchased	2,100,000
Direct labor payroll	1,000,000
Factory overhead	800,000
Selling expense	300,000
Freight-out	900,000
General and administrative expenses	1,600,000

Sand Wraith Companys profit before tax is

a. 4,250,000

d. 3,350,000

c. 3,550,000

b. 4,150,000

3.

For the year ended December 31, 2017, Southern Company had the following account balances:

Services revenue		$445,000
Rent expense		60,000
Salary expense		200,000
Utility expense		45,000
Retained earnings (1/1/17)		130,000
Dividends paid		75,000
Interest expense		25,000

Given the above information, compute the following items:

a.	Total services revenue	$fill in the blank 1
b.	Total expenses	$fill in the blank 2
c.	Net income	$fill in the blank 3
d.	Retained earnings at 12/31/2017	$fill in the blank

4 If a company has $528,000 of services revenue, pays $26,400 in dividends, and has net income of $158,400, how much were the expenses for the year?

a.$343,200

b.$396,000

c.$369,600

d.$422,400

5

The following information for 2022 is provided by Panunumpa Company:

Sales	20,000,000
Cost of goods sold	12,000,000
Selling expenses	1,200,000
General and administrative expenses	1,800,000
Interest expense	1,500,000
Gain on early extinguishment of long-term debt	500,000
Correction of inventory error, net of income tax credit	800,000
Investment income equity method	600,000
Gain on sale of investment	2,000,000
Income tax expense	2,100,000
Dividends declared	2,500,000

What was the 2022 income from continuing operations?

a. 4,900,000 b. 4,500,000 c. 6,600,000 d. 7,000,000

6

1. Which of the following is a revenue generating activity?

   a.Borrowing money from a bank

   b.Selling capital stock

   c.Providing consulting services

   d.Paying rent

7

1. Costs that are incurred during the normal operations of a business to generate revenues are called

   a.liabilities.

   b.losses.

   c.assets.

   d.expenses.

8

1. Resource increases from the sale of goods or services are called

   a.net income.

   b.gains.

   c.assets.

   d.revenues.

9

1. The following information was taken from the records of McDyce Corporation for the year ended December 31, 2017:

   Dividends paid		$12,800
   Services revenue		90,500
   Accounts payable		139,750
   Capital stock		378,750
   Total expenses		67,000
   Retained earnings (1/1/17)		43,400

   The net income at December 31, 2017 was

   a.$54,100

   b.$43,400

   c.$72,750

   d.$23,500

10

1. If a company sells its equipment for more than it is valued on the balance sheet, the difference is called a(n)

   a.gain.

   b.profit.

   c.income.

   d.revenue.

11

1. Revenues cause

   a.an increase in net assets.

   b.an increase in liabilities.

   c.a decrease in net assets.

   d.no change in net assets.