Question 5 4 pts Which of the following best describes the amounts reported as shareholders' equity? Investments by owners and cash received from operations. Investments by owners plus net income earned minus dividends distributed to owners since the company began its operations. Cash received from operations minus cash paid for operations plus amounts invested by owners. Total assets owned by the company minus amounts paid out as dividends since the company began its operations. Question 6 4 pts Which of the following best describes financial accounting? It is used only for filling out tax returns and for financial statements for various type of governmental reporting requirements. It records economic data but does not communicate the data to users according to any specific rules. It is an information system that provides reports to users regarding economic activities and condition of a business It is of no use by individuals outside of the business Question 7 4 pts Xu Company acquired office equipment valued at $4,000 and office supplies valued at $600 by paying cash of $1,300 with the balance on account. The effect of this transaction on the company's accounting equation would be to o decrease the cash account by $1,300, increase the accounts payable account by $3,300, increase the office equipment account by $4,000, and increase the office supplies account by $600. o increase the office equipment account by $4,600, decrease the cash account by $1,300, and decrease the accounts payable account by $3,300. increase the cash account by $1,300, increase the capital stock account by $3,300, decrease the equipment account by $4,000, and increase the office supplies account by $600. o increase the cash account by $1,300, increase the accounts payable account by $3,300, and increase the office equipment account by $4,600. Question 8 4 pts Marilu Company began the year with stockholders' equity of $30,000. During the year, Marilu issued additional shares of stock in exchange for cash of $42,000, recorded expenses of $120,000, and paid dividends of $8,000. If Marilu's ending stockholders' equity was $92,000, what was the company's revenue for the year? O $140,000 0 $148,000 O $190,000 O $182,000 Question 9 4 pts As of the end of its accounting period on December 31, 2017, Forster Company had assets of $92,000 and liabilities of $68,000. During the year 2018, the owners invested an additional $15,000 and received dividends of $6,000 from the business. As of December 31, 2018, the company's assets were $98,000, and liabilities were $55,000. Determine the Net Income for the year 2018 $4,000. $25,000. $19,000. $10,000 Question 10 4 pts Which of the following statements is false? O A balance sheet provides information at a specific point in time, while the other three statements provide information for a specific period of time. O The balance sheet reports the beginning balance of retained earnings O When an entity's expenses exceed its revenues for a period of time, the entity reports a net loss for that period. O A company's assets come from three primary sources: creditors, investors and profits from the business. Question 11 4 pts Under accrual basis accounting: events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received O cash must be received before revenue is recognized. the ledger accounts must be adjusted to reflect a cash basis of accounting before financial statements are prepared under generally accepted accounting principles. net income is calculated by matching cash outflows against cash inflows Question 12 4 pts Cheng Company obtained a $25,000, one-year, 12 percent bank loan on November 1 of the current year. Interest is payable at the end of the loan term. The company's adjusting entry needed on December 31 is: A debit to Interest Expense of $500 and a credit to Interest Payable of $500 A debit to Interest Receivable of $500 and a credit to Interest Revenue of $500 A debit to Interest Expense of $3,000 and a credit to Interest Payable of $3,000 A debit to Interest Expense of $250 and a credit to Interest Payable of $250 Question 13 4 pts An adjustment for which of the following situations will increase assets? The use of supplies is recorded Depreciation for the period is recorded Rent revenue is recorded for amounts owed by a tenant but not yet received Interest is incurred on money borrowed during the period but not yet paid to the bank OOO