:Help me answer the following questions.

1. In the annual report, where would a financial statement reader find out if the company's financial statements

give a fair depiction of its financial position and operating results?

a. Notes to the financial statements

b. Management discussion and analysis section

c. Balance sheet

d. Auditor's report

e. None of the options listed

____ 2. Which accounting assumption assumes that an enterprise will continue in operation long enough to carry out

its existing objectives and commitments?

a. Monetary unit assumption

b. Economic entity assumption

c. Time period assumption

d. Going concern assumption

e. None of the options listed

Johnny's Car Repair Shop started the year with total assets of $60,000 and total liabilities of $40,000. During

the year the business recorded $100,000 in car repair revenues, $55,000 in expenses, and dividends of

$10,000.

____ 3. The net income reported by Johnny's Car Repair Shop for the year was

a. $35,000.

b. $45,000.

c. $20,000.

d. $90,000.

e. none of the options listed

____ 4. The purchase of an office building by issuing long-term notes payable should be reported as a

a. cash outflow in the financing section of the statement of cash flows.

b. cash outflow in the investing section of the statement of cash flows.

c. cash outflow in the operating section of the statement of cash flows.

d. noncash investing and financing activity.

e. none of the options listed

____ 5. If beginning capital was $25,000, ending capital is $37,000, and the owner's withdrawals were $23,000, the

amount of net income or net loss for the period was:

a. net loss of $35,000

b. net income of $35,000

c. net income of $14,000

d. net loss of $14,000

e. none of the options listed

____ 6. The deferred income tax liability:

a. Represents income tax payments that are deferred until future years because of temporary

differences between GAAP rules and tax accounting rules.

b. Is a contingent liability.

6. Perfect Competition Albert Bros Doughnuts produces doughnuts and it's a price taker in the market. It has to pay $1 of rent every day it operates as a business. The following graph shows its variable costs per day for the production of doughnuts (Q is the number of doughnuts). VC 10 7 48 3 2 2 3 5 O Un a) At what quantity does Albert Bros Doughnuts' have its lowest ATC? At what quantity does Albert Bros Doughnuts' have its lowest AVC? b) Suppose that the market price for doughnuts is $2.10 per doughnut. In the short run, will Albert Bros Doughnuts earn a positive, negative, or zero economic profit? In the short run, should the firm produce or shut down? In the long run, holding everything else constant, do you expect this firm to continue to produce or to exit the industry? Explain your answer. Suppose that the market price for doughnuts is $1.70 per doughnut. In the short run, will Albert Bros Doughnuts earn a positive, negative, or zero economic profit? In the short run, should the firm produce or shut down? In the long run, holding everything else constant, do you expect this firm to continue to produce or to exit the industry? Explain your answer. d) Suppose that the market price for doughnuts is $1.30 per doughnut. In the short run, will Albert Bros Doughnuts earn a positive, negative, or zero economic profit? In the short run, should the firm produce or shut down? In the long run, holding everything else constant, do you expect this firm to continue to produce or to exit the industry? Explain your answer.10) On May 1, 2018, Abiuso Corporation purchased for $790,000 a tract of land on which a warehouse and office building were located. The following data were collected concerning the property: Current Fair Seller's Value Original Cost Land ... $225,000 $190,000 Warehouse ..... 315,000 350,000 Office Building ..... 360.000 145.000 $900,000 $685.000 How much should Abiuso record for the land, warehouse, and office building? Land Warehouse Officebuilding $190,000 $350,000 $145,000 $225,000 $315,000 $360,000 $291,124 $403,650 $167,226 $197.500 $276.500 $316,000 1 1) An asset is being constructed for an enterprise's own use. The asset has been financed with a specific new borrowing. The interest cost incurred as a result of expenditures for the asset during the construction period is a. a part of the cost of the asset to be allocated over its estimated useful life. b. interest expense in the construction period. c. recorded as a deferred charge and amortized over the term of the borrowing. d. a part of the cost of the asset to be allocated over the term of the borrowing used to finance the construction of the asset. 12)Which of the following statements correctly describes the proper accounting for nonmonetary exchanges that are deemed to have commercial substance? a. It defers any gains and losses. b. It defers loosed to the extent of any gains. c. It recognizes gains and losses immediately. d. It defers gains and recognizes losses immediately. 13) Hoyle Company traded machinery with an original cost of $780,000 and accumulated depreciation of 20,000. It received in exchange from Durler Company a machine with a fair value of $800,000. Hoyle also paid cash of $80,000 in the exchange. What amount of gain or loss should Hoyle recognize on the exchange (assuming lack of commercial substance)? a. $80,000 gain b. $ -0- c. $4,000 loss d. $40,000 lossThe following three situations involve the capitalization of interest. Situation I On January 1, 2017, Tamarisk, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,215,DDD. It was estimated that it would take 3 years to complete the project. Also on January 1, 2017, to finance the construction cost, Tamarisk borrowed $4,215,000 payable in 10 annual installments of $421,500, plus interest at the rate of 10%%. During 2017, Tamarisk made deposit and progress payments totaling $1,580,625 under the contract; the weighted average amount of accumulated expenditures was $843,090 for the year. The excess borrowed funds were invested in short-term securities, from which Tamarisk realized investment income of $256,400. What amount should Tamarisk report as capitalized interest at December 31, 2017? Capitalized interest Situation II During 2017, Vaughn Corporation constructed and manufactured certain assets and incurred the following interest costs in connection with those activities. Interest Costs Incurred Warehouse constructed for Vaughn's own use $31,800 special-order machine for sale to unrelated customer, produced according to customer's specifications 8,330 Inventories routinely manufactured, produced on a repetitive basis 8,750 All of these assets required an extended period of time for completion. Assuming the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized? The total amount of interest costs to be capitalized 40,130 Situation III Bramble, Inc. has a fiscal year ending April 30. On May 1, 2017, Bramble borrowed $9,898,000 at 11% to finance construction of its own building. Repayments of the loan are to commence the month following completion of the building. During the year ended April 30, 2018, expenditures for the partially completed structure totaled $6,928,600. These expenditures were incurred evenly throughout the year. Interest earned on the unexpended portion of the loan amounted to $643,370 for the year. How much should be shown as capitalized interest on Bramble's financial statements at April 30, 20187 Capitalized interest on Bramble's financial statements