1. Pick the most complete answer...... "Shareholder's/Owner's Equity on the Balance Sheet includes........"

1 point

Common Shares, Retained Earnings, Preferred Shares

Common Shares & Retained Earnings

Common Shares & Preferred Shares valued at current market price

Common Shares, Retained Earnings, Depreciation

2. For the year ended, Company X had Net Income of $50,000, increased it's inventories by $2,800 compared to last year, bought $9,000 of new equipment, had depreciation of $800, took out a loan for $2,000, paid off a $1,000 loan, sold $1,600 of old equipment. Company X had $500 in the bank at the beginning of the year. The year ending Cash Balance would be

2 points

$41,100

$41,900

$500

$42,100

3. Inventory originally purchased from a supplier for $11,000, with an estimated sales value of $20,000 to customers, can now to purchased from that same supplier for $12,000. This inventory would be valued on the Balance Sheet as

1 point

$20,000

$11,000

$9,500

$12,000

4. True or false.................. Of the 4 Financial Statements, only the Balance Sheet is calculated at a "point in time"

1 point

True

False

Your answer

5. For the year ended, Company X had Net Income of $50,000, increased it's inventories by $2,800 compared to last year, bought $9,000 of new equipment, had depreciation of $800, took out a loan for $2,000, paid off a $1,000 loan, sold $1,600 of old equipment. Company X had $500 in the bank at the beginning of the year. For the year Operating Activities

2 points

generated cash of $48,000

generated cash of $49,200

generated cash of $50,000

generated cash of $48,800