Gmail TF824 872EME 6) Revenues are: a cash payments from customers b. outfiows of assets to customers c. cash receipts from customers d. inflows of assets from customers e sensitive to the timing of cash receipts from customers 7) Which of the following are true? a not all future benefits qualify as assets b. all liabilities provide future benefits c. all future benefits are assets. 2 67% + 90 d. none of the above 8) Retained earnings are a a source of financing for assets b. cash o other non-cash assets d. the sum of a firm's dividend declarations 9) At the end of the third year of operation, Groon Wash Corporation has total assets equal to $100,000, liabilities totaling $90,000, and contributed capital of $30,000. What is the balance in retained earnings? a $40,000 (DE) b. $40,000 (CN) C. $20,000 (Dr) d. $10,000 (CN) e. $20,000 (CT) OF24 23 se TO b. $40.000 (CT) c. $20.000 (Dr) d. $10.000 (Cr) e. $20.000 (Cr) 10) Peter Company signed a new $36,000 three-year lease beginning October 1, Year 1, for a storage facility for holding merchandise inventory. On October 1, Year 1. Peter Company recorded the first year's payment of $12,000 in the Prepaid Rent account. There was no balance in the Prepaid Rent account prior to this entry. Peter Company records adjustments only at the calendar year end. At December 31, Year 1, the adjusting entry needed to accurately reflect the correct balances in the Prepaid Rent and Rent Expense accounts would be to debit: a. Prepaid Rent for $12,000 and credit Rent Expense for $12,000 b. Rent Expense for $12,000 and credit Prepaid Rent for $12,000 C. Prepaid Rent for $3,000 and credit Rent Expense for $3,000 d. Rent Expense for $3,000 and credit Prepaid Rent for $3,000 e. Rent Expense for $9,000 and credit Prepaid Rent for $9,000 Problems T911 823BRE 263 TO 2 + 30 5) Revenues are a cash payments from customers b. outflows of assets to customers cash receipts from customers d. inflows of assets from customers e sensitive to the timing of cash receipts from customers 7) Which of the following are true? antall vure benefits qually as assets b. all liabilities provide Mure benefits Cure benefits are assets d. none of the above 8) Retained earnings are a source of financing for assets 0 cash other non-cash assets d. the sum of arms dividend declarations T81 82 TODO 5 b. cash other non-cash assets d the sum of arm's dividend declarations 9) At the end of the third year of operation, GreenWash Corporation has total assets equal to $100,000, labies totaling 500,000, and contributed capital of $30.000. What is the balance in retained camings? a $40.000 (Dr) b. $40.000 (0) c. $20.000 (D d. $10,000 in $20,000 (CT) 10) Peter Company signed a new $36.000 three year lease beginning October 1, Year 1. for a storage facility for holding merchandise inventory. On October 1, Yew 1, Peter Company recorded the first year's payment of $12,000 in the Prepaid Rent account There was no balance in the Prepaid Rent account prior to this entry. Peter Company records adjustments only at the calendar year end. At December 31, Year 1, the adjusting entry needed to accurately reflect the correct balances in the Prepaid Rent and Rent Expense accounts would be to debit & Prepaid Rent for $12,000 and credit Rent Expense for $12,000 b. Rent Expense for $12,000 and credit Prepaid Rent for $12,000 c. Prepaid Rent for $3,000 and credit Rent Expense for $3.000 d. Rent Expense for $3,000 and credit Prepaid Rent for $3.000 e. Rent Expense for $9,000 and credit Prepaid Rent for $9,000