2016 2017 2018 Net Income $1,200 ($500) $2,300 Net Cash Flows $500 $300 $2,800 Dividends $200 $0 $200 Issuance of Stock $2,000 $0 $0 131)The above amounts represent totals from the first three years of operations Calculate the balance of Retained Earnings at the end of 2018 A) $3,500 B) $4,600 C) $2,600 D) $3,100 A bond issue with a face amount of $500,000 bears interest at the rate of 7 The current market rate of interest is 8 These bonds will sell at a price that is The answer cannot be determined from the information provided More than $500,000 Less than $500,000 Equal to $500,000 Treasury Stock Decreases stockholders' equity B) Is recorded as an investment C) Increases stockholders' equity D) Has a normal credit balance On September 1, 2018, ABC signed a $100,000, 9 , six month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2019 ABC should report interest payable at December 31, 2018, in the amount of A) $0 B) $1,500 C) $4,500 D) $3,000 ABC estimates uncollectible accounts based on the percentage of accounts receivable What effect will recording the estimate of uncollectible accounts have on the accounting equation Increase assets and decrease stockholders' equity Increase liabilities and decrease stockholders' equity Decrease assets and decrease liabilities Decrease assets and decrease stockholders' equity Bond X and Bond Y are both issued by the same company Each of the bonds has a face value of $100,000 and each matures in 10 years Bond X pays 8 interest while Bond Y pays 7 interest The current market rate of interest is 7 Which of the following is correct Both bonds will sell at a premium B) Both bonds will sell for the same amount C) Bond X will sell for more than Bond Y D) Bond Y will sell for more than Bond X In accounting the word 'capitalize' means treat as an asset B) treat as capital C) take the chance to gain advantage from D) provide a company with capital It is possible to calculate shrinkage in Perpetual Inventory Accounting but not in Periodic Inventory Accounting in neither Periodic Inventory Accounting nor Perpetual Inventory Accounting in Periodic Inventory Accounting but not in Perpetual Inventory Accounting in both Periodic Inventory Accounting and in Perpetual Inventory Accounting A company provides services on account Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues (1) Increase, (2) Increase (3) Increase B) (1) Increase, (2) No effect (3) Increase C) (1) No effect, (2) No effect (3) No effect D) (1) No effect, (2) Increase (3) Increase The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively Net income and sales for the year are $240,000 and $2,000,000, respectively What is ABC's asset turnover 8 33 times B) 1 33 times C) 0 80 times D) 1 25 times How many of the following transactions are operating activities Borrowed $50,000 from the bank Purchased $12,000 in supplies Provide services to customers for $27,000 Paid the utility bill of $750 Purchased a delivery truck for $12,000 Received $25,000 from issuing common stock Three B) Four C) Two D) One A machine has a cost of $15,000, an estimated residual value of $3,000, and an estimated useful life of four years The machine is being depreciated on a straight line basis At the end of the second year, what amount will be reported for accumulated depreciation

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2016 2017 2018 Net Income $1,200 ($500) $2,300 Net Cash Flows $500 $300 $2,800 Dividends $200 $0 $200 Issuance of Stock $2,000 $0 $0 131)The

	2016	2017	2018
Net Income	$1,200	($500)	$2,300
Net Cash Flows	$500	$300	$2,800
Dividends	$200	$0	$200
Issuance of Stock	$2,000	$0	$0

131)The above amounts represent totals from the first three years of operations. Calculate the balance of Retained Earnings at the end of 2018.

A) $3,500 B) $4,600 C) $2,600 D) $3,100

A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 8%. These bonds will sell at a price that is:
1. The answer cannot be determined from the information provided.
2. More than $500,000.
3. Less than $500,000.
4. Equal to $500,000.

Treasury Stock:
1. Decreases stockholders' equity. B) Is recorded as an investment.

C) Increases stockholders' equity. D) Has a normal credit balance.

On September 1, 2018, ABC signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2019. ABC should report interest payable at December 31, 2018, in the amount of:

A) $0. B) $1,500. C) $4,500. D) $3,000.

ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation?
1. Increase assets and decrease stockholders' equity.
2. Increase liabilities and decrease stockholders' equity.
3. Decrease assets and decrease liabilities.
4. Decrease assets and decrease stockholders' equity.

Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of

$100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?

Both bonds will sell at a premium. B) Both bonds will sell for the same amount.

C) Bond X will sell for more than Bond Y. D) Bond Y will sell for more than Bond X.

In accounting the word 'capitalize' means
1. treat as an asset B) treat as capital

C) take the chance to gain advantage from. D) provide a company with capital.

It is possible to calculate shrinkage
1. in Perpetual Inventory Accounting but not in Periodic Inventory Accounting
2. in neither Periodic Inventory Accounting nor Perpetual Inventory Accounting
3. in Periodic Inventory Accounting but not in Perpetual Inventory Accounting
4. in both Periodic Inventory Accounting and in Perpetual Inventory Accounting

A company provides services on account. Indicate how this transaction would affect (1) assets, (2) stockholders' equity, and (3) revenues.
1. (1) Increase, (2) Increase (3) Increase B) (1) Increase, (2) No effect (3) Increase

C) (1) No effect, (2) No effect (3) No effect D) (1) No effect, (2) Increase (3) Increase

The balance sheet of ABC reports total assets of $1,500,000 and $1,700,000 at the beginning and end of the year, respectively. Net income and sales for the year are $240,000 and $2,000,000, respectively. What is ABC's asset turnover?
1. 8.33 times. B) 1.33 times. C) 0.80 times. D) 1.25 times.

How many of the following transactions are operating activities? Borrowed $50,000 from the bank

Purchased $12,000 in supplies

Provide services to customers for $27,000 Paid the utility bill of $750

Purchased a delivery truck for $12,000 Received $25,000 from issuing common stock

Three. B) Four. C) Two. D) One.

A machine has a cost of $15,000, an estimated residual value of $3,000, and an estimated useful life of four years. The machine is being depreciated on a straight-line basis. At the end of the second year, what amount will be reported for accumulated depreciation?