Question 1 10 Points The following information pertains to the next three questions At the beginning of 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 1 The amount of net income reported on the income statement for the current year would be $300 $250 $150 none of the above Question 2 10 Points The amount of retained earnings reported on the December 31 balance sheet for the current year would be $200 none of the above $150 $250 Question 3 10 Points The amount of total assets reported on the December 31 balance sheet for the current year would be $100 $750 $850 $600 Question 4 10 Points 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 XYZ Company has enough cash to pay off its liabilities since the company's inception, the total amount of net income exceeded total dividends by at least $60,000 net assets of the company amounted to $20,000 total assets amounted to $100,000 Question 5 10 Points 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 retained earnings at the end of the period amounted to $350 liabilities at the end of the period amounted to $100 total assets at the end of the period were $550 net income amounted to $50 Question 6 10 Points The entry to record revenue on account increases liabilities decreases equity none of the above decreases assets Question 7 10 Points Which of the following accounts is not closed at the end of the accounting period Dividends Service Revenue Operating Expenses Retained Earnings Question 8 10 Points K Company collected $500 cash on an account receivable that was due from L Company Based on this information, which of the following statements is true K Company's total assets would not change K Company's total assets would increase K Company's equity would decrease None of the above Question 9 10 Points On April 1, Flavin Co paid $12,000 cash for an insurance policy that provides coverage for one year beginning immediately On December 31, Flavin adjusted the books to recognize the amount of the insurance policy used during the year The amount of the adjustment would be $12,000 $9,000 $0 $8,000 Question 10 5 Points 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 12 On its 2019 income statement, BBC would report revenue of $2,750 $3,025 $9,900 $3,300 Question 11 5 Points On its December 31, 2020 balance sheet BBC would report liabilities of $3,300 $3,575 $9,900 $6,875

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 31, 2024

Question 1 10 Points The following information pertains to the next three questions. At the beginning of the current year, X Company had assets of

Question 1
10 Points

The following information pertains to the next three questions. At the beginning of 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.

1. The amount of net income reported on the income statement for the current year would be
1. $300.
2. $250.
3. $150.
4. none of the above.
Question 2
10 Points

The amount of retained earnings reported on the December 31 balance sheet for the current year would be
1. $200
2. none of the above.
3. $150
4. $250
Question 3
10 Points

The amount of total assets reported on the December 31 balance sheet for the current year would be
1. $100
2. $750
3. $850
4. $600
Question 4
10 Points

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
1. XYZ Company has enough cash to pay off its liabilities.
2. since the company's inception, the total amount of net income exceeded total dividends by at least $60,000.
3. net assets of the company amounted to $20,000.
4. total assets amounted to $100,000.
Question 5
10 Points

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.
1. retained earnings at the end of the period amounted to $350.
2. liabilities at the end of the period amounted to $100.
3. total assets at the end of the period were $550.
4. net income amounted to $50.
Question 6
10 Points

The entry to record revenue on account
1. increases liabilities.
2. decreases equity.
3. none of the above.
4. decreases assets.
Question 7
10 Points

Which of the following accounts is not closed at the end of the accounting period?
1. Dividends
2. Service Revenue
3. Operating Expenses
4. Retained Earnings
Question 8
10 Points

K Company collected $500 cash on an account receivable that was due from L Company. Based on this information, which of the following statements is true?
1. K Company's total assets would not change.
2. K Company's total assets would increase.
3. K Company's equity would decrease.
4. None of the above.
Question 9
10 Points

On April 1, Flavin Co. paid $12,000 cash for an insurance policy that provides coverage for one year beginning immediately. On December 31, Flavin adjusted the books to recognize the amount of the insurance policy used during the year. The amount of the adjustment would be:
1. $12,000.
2. $9,000.
3. $0.
4. $8,000.
Question 10
5 Points

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.

12. On its 2019 income statement, BBC would report revenue of
1. $2,750.
2. $3,025.
3. $9,900.
4. $3,300.
Question 11
5 Points

On its December 31, 2020 balance sheet BBC would report liabilities of
1. $3,300.
2. $3,575.
3. $9,900.
4. $6,875.