Question
1. Well Company paid Being Company for merchandise with a $4,500, 90-day, 10% note dated December 11. What is the financial statement effect to Being
1. Well Company paid Being Company for merchandise with a $4,500, 90-day, 10% note dated December 11. What is the financial statement effect to Being Company at the end of the accounting period on December 31?
Select one:
a.
BALANCE SHEET | INCOME STATEMENT | ||||||||
---|---|---|---|---|---|---|---|---|---|
ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE | ||
Cash | Interest Receivable | Retained Earnings | Interest Income | ||||||
A) | +25 | +25 | +25 |
b.
BALANCE SHEET | INCOME STATEMENT | ||||||||
---|---|---|---|---|---|---|---|---|---|
ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE | ||
Cash | Notes Receivable | Notes Payable | Retained Earnings | Interest Income | Interest Expense | ||||
B) | +25 | -25 |
c.
BALANCE SHEET | INCOME STATEMENT | ||||||||
---|---|---|---|---|---|---|---|---|---|
ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE | ||
Cash | Notes Receivable | Notes Payable | Retained Earnings | Interest Income | Interest Expense | ||||
C) | -25 | -25 | -25 |
d.
BALANCE SHEET | INCOME STATEMENT | ||||||||
---|---|---|---|---|---|---|---|---|---|
ASSETS | = | LIABILITIES | + | STOCKHOLDER'S EQUITY | REVENUE | - | EXPENSE | ||
Cash | Notes Receivable | Notes Payable | Retained Earnings | Interest Income | Interest Expense | ||||
D) | +25 | +25 | +25 |
e. None of the above
2.
Certain highly liquid, short-term investments of 90 days maturity or less are often combined with Cash and presented as a single amount called Cash and Cash Equivalents on the balance sheet.
Select one:
True
False
3.
Certain highly liquid, short-term investments of 90 days maturity or less are often combined with Cash and presented as a single amount called Cash and Cash Equivalents on the balance sheet.
Select one:
True
False
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