1. Question 1
2. 10 Points
3. The following information pertains to the next three questions. At thebeginningof the current year, X Company had assets of $600, liabilities of $300, and common stock of $100.During the current year, the company earned revenue of $750, incurred expenses of $500, and paid dividends of $100.All transactions were cash transactions.
4. 1.The amount of net income reported on the income statement for the current year would be
6. $300.
7. $250.
8. $150.
9. none of the above.
10. Question 2
11. 10 Points
12. The amount of retained earnings reported on the December 31balance sheet for the current year would be
14. $200
15. none of the above.
16. $150
17. $250
18. Question 3
19. 10 Points
20. The amount of total assets reported on the December 31balance sheet for the current year would be
22. $100
23. $750
24. $850
25. $600
26. Question 4
27. 10 Points
28. The balance sheet of XYZ Company reports liabilities of $40,000,common stock of $10,000, and retained earnings of $50,000.Based on this information alone, you would know that
30. XYZ Company has enough cash to pay off its liabilities.
31. since the company's inception,the total amount of net income exceeded total dividends by at least $60,000.
33. net assets of the company amounted to $20,000.
34. total assets amounted to $100,000.
35. Question 5
36. 10 Points
37. The Southern Company began the accounting period with assets of $600, common stock of $200, and retained earnings of $250.During the period,revenue was $300,expenses were $200, and dividends were $50.Common stock was unchanged during the accounting period.Liabilities decreased by $100.Based on this information.
39. retained earnings at the end of the period amounted to $350.
40. liabilities at the end of the period amounted to $100.
41. total assets at the end of the period were $550.
42. net income amounted to $50.
43. Question 6
44. 10 Points
45. The entry to record revenue on account
47. increases liabilities.
48. decreases equity.
49. none of the above.
50. decreases assets.
51. Question 7
52. 10 Points
53. Which of the following accounts is not closed at the end of the accounting period?
55. Dividends
56. Service Revenue
57. Operating Expenses
58. Retained Earnings
59. Question 8
60. 10 Points
61. K Company collected $500cash on an account receivable that was due from L Company.Based on this information, which of the following statements is true?
63. K Company's total assets would not change.
64. K Company's total assets would increase.
65. K Company's equity would decrease.
66. None of the above.
67. Question 9
68. 10 Points
69. On April 1,FlavinCo. paid $12,000 cash for an insurance policy that provides coverage for one year beginning immediately.On December 31, Flavinadjusted the books to recognize the amount of the insurance policy used during the year.The amount of the adjustment would be:
71. $12,000.
72. $9,000.
73. $0.
74. $8,000.
75. Question 10
76. 5 Points
77. Use the following information to answer the next two questions. BBC Company received $9,900 cash on February 1,2019,from XYZ Company as advance payment for services BBC promised to perform for XYZ over the next three years on a continuous basis.Assume that BBC Company's year-end is December 31.
78. 12.On its 2019income statement,BBC would report revenue of
80. $2,750.
81. $3,025.
82. $9,900.
83. $3,300.
84. Question 11
85. 5 Points
86. On its December 31, 2020balance sheet BBC would report liabilities of
88. $3,300.
89. $3,575.
90. $9,900.
91. $6,875.