ACCT 2101 EXAM 1 PREP 1. Which of the following transactions increases net income but not cash in the current period? a. Receiving a loan from a bank that must be paid off two years from now b. Promising to provide flights to customers who pre-pay for those flights C. Providing flights to customers who purchased plane tickets this period d. Providing flights to customers who purchased plane tickets in a prior period 2. A company's January 1, 2019 balance sheet reported total assets of $150,000 and total liabilities of $60,000. During January 2019, the company completed the following transactions: (A) purchased $15,000 of inventory on account; (B) collected a $9,000 account receivable; (C) paid a $5,000 account payable; and (D) declared a dividend of $6,000. The company's January 31, 2019 balance sheet would report which of the following? a. Assets Liabilities Stockholders' Equity $150,000 $60,000 $90,000 b. Assets Liabilities Stockholders' Equity $160,000 $76,000 $84,000 c. Assets Liabilities Stockholders' Equity $160,000 $64,000 $96,000 d. Assets Liabilities Stockholders' Equity $169,000 $85,000 $84,000 3. On December 25 of 2019, a customer purchased an $8,000 table from a furniture company and paid $5,000 in cash on the day she received the table. Which of the following is true with respect to the furniture company's December 31" financial statements using generally accepted accounting principles? a. $8,000 would be reported on the statement of cash flows b. $5,000 would appear on the income statement as revenue c. $8,000 would appear on the income statement as revenue d. $8,000 would appear on the balance sheet as accounts receivable 4. Which of the following statements is correct? a. An income statement will provide information about how much cash was paid for a long-term asset. b. No one statement can provide information about how much cash was paid for a long-term asset since payment can be in cash and in credit. c. A balance sheet will provide information about how much cash was paid for a long-term asset. d. A statement of cash flows will provide information about how much cash was paid for a long-term asset.