Accounting

1. The reduction of accumulated depreciation from an asset's cost gives of an asset reported on the balance sheet. 2. Existing obligations payable beyond the next reporting period arc defined as current liabilities. TRUE or FALSE 3. Cash used for the acquisition of fixed assets and cash Generated from their disposal is reported on th Statement of Cash Flows (SCE's) as a. Cash Flows from Operating Activities (CEOs) b. Cash Flows from Investing Activities (CF1s) c. Cash Flows from Financing activities (CFIs) d. Cash Flows from Non-Daily Activities (CNDF) 4. Retained earnings represent the cumulative amount of income kept within the business for all the year the business has operated. TRUE or FALSE 5. The critical feature in understanding is that the fund's balance sheet consists of only current assets and current liabilities. 6. Tracy Corporation reported the following cash transactions for the year ending December 31. 2012. its first year in operation: 1. issued common stock for $60,000 cash 2. borrowed $10,000 cash from a local bank 3. purchased land for $40,000 4. provided services to clients for $70,000 cash 5. paid operating expenses of $62,000 6. paid $3,000 cash dividends to stockholders Required: a) What arc the total assets for Tracy Corporation at Dammam 31. 2012? b) What is the total equity for Tracy at December 11. 2012? c) Prepare an income statement for 2012