Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. For the year, Beta had beginning total liabilities of s25,000 and ending total liabilities of S15,000. During the year, total assets increased $30.000. The

image text in transcribed
6. For the year, Beta had beginning total liabilities of s25,000 and ending total liabilities of S15,000. During the year, total assets increased $30.000. The beginning balance in stockholders' equity was $40,000. In addition, common stock of S10,000 was sold at par value, and dividends of $5,000 were declared and paid. How much was Beta's net income for the year. HINT: Use changes in the accounting equation to solve this problem. A. $5,000 B. $10,000 C. $15,000 D. $20,000 E. None of the above If the balance in the accounts payable account decreased during the year, which of the following best explains the adjustment made when converting from cash basis net income to accrual basis net income? A. Because this decrease is the result of recognizing an expense for accrual basis but not cash basis and, therefore, this 7. B. Because this decrease is the result of recognizing an expense for cash basis but not accrual basis and, therefore, this C. Because this decrease is the result of recognizing an expense for accrual basis but not cash basis and, therefore, this D. Because this decrease is the result of E. None of the above decrease is required to be added to the cash basis net income balance to find accrual basis net income. decrease is required to be subtracted from the cash basis net income balance to find accrual basis net income. decrease is required to be subtracted from the cash basis net income balance to find accrual basis net income. decrease is required to be added to the cash basis net income balance to find accrual basis net income. recognizing an expense for cash basis but not accrual basis and, therefore, this 8. Alpha had net sales of S16 million, ending inventory of S6 million, beginning inventory of $8 million, and a gross profit percent of 25%. Using the periodic inventory system, what was Alpha's net purchases? A. $6 million B. S8 million C. $10 million D. $12 million E. None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Decision Emphasis

Authors: Germain B. Boer, William L. Ferrara, Debra C. Jeter

4th Edition

0873939123, 978-0873939126

More Books

Students also viewed these Accounting questions