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LNDN$11010-$ Internat Corporate Reporting $2023/24$ T$1$

LNDN$11010-$ Internat Corporate Reporting $2023/24$ T$1$

$4$ of $44$ of $4$ Items

$57$:$20$

Question $1$

Which of the following is not an advantage of the corporate form of business organization?

Responses

Unlimited personal liability for shareholders

Unlimited personal liability for shareholders

Limited liability of shareholders

Limited liability of shareholders

Transferability of ownership

Transferability of ownership

Unlimited life

Unlimited life

Question $2$

At October $1,$ Smithson Enterprises reported equity of $$280,000.$ During October, posted a net loss of $$24,000.$ If equity at October $31$ totals $$240,000,$ what amount of dividends were paid during the month?

Responses

$$0$

$$0$

$$24,000$

$$24,000$

$$40,000$

$$40,000$

$$16,000$

$$16,000$

Question $3$

Metzger Company compiled the following financial information as of December $31,2017$:

Revenues $420,000$

Retained earnings $(1/1/17)210,000$

Equipment $240,000$

Expenses $375,000$

Cash $105,000$

Dividends $30,000$

Supplies $15,000$

Accounts payable $60,000$

Accounts receivable $45,000$

Share capital$-$ordinary $195,000$

Metzger$$s assets on December $31,2017$ are

Responses

$360,000.$

$360,000.$

$630,000.$

$630,000.$

$825,000.$

$825,000.$

$405,000.$

$405,000.$

Question $4$

Metzger Company compiled the following financial information as of December $31,2017$:

Revenues $420,000$

Retained earnings $(1/1/17)210,000$

Equipment $240,000$

Expenses $375,000$

Cash $105,000$

Dividends $30,000$

Supplies $15,000$

Accounts payable $60,000$

Accounts receivable $45,000$

Share capital$-$ordinary $195,000$

Metzger$$s equity on December $31,2017$ is

Responses

$420,000.$

$420,000.$

$375,000.$

$375,000.$

$300,000.$

$300,000.$

$330,000.$

$330,000.$

Question $5$

At December $1,2017,$ Gibson Company$$s accounts receivable balance was $7,200.$ During December, Gibson had credit revenues of $30,000$ and collected accounts receivable of $24,000.$ At December $31,2017,$ the accounts receivable balance is

Responses

$13,200$ credit

$13,200$ credit

$13,200$ debit.

$13,200$ debit.

$37,200$ debit

$37,200$ debit

$7,200$ debit.

$7,200$ debit.

Question $6$

Carla$$s Computer Repair Shop started the year with total assets of $$720,000$ and total liabilities of $$480,000.$ During the year, the business recorded $$1,200,000$ in computer repair revenues, $$680,000$ in expenses, and the company paid dividends of $$120,000.$

Equity at the end of the year was

Responses

$$640,000.$

$$640,000.$

$$760,000.$

$$760,000.$

$$520,000.$

$$520,000.$

$$600,000.$

$$600,000.$

Question $7$

Carla$$s Computer Repair Shop started the year with total assets of $$720,000$ and total liabilities of $$480,000.$ During the year, the business recorded $$1,200,000$ in computer repair revenues, $$680,000$ in expenses, and the company paid dividends of $$120,000.$

The net income reported by Carla's Computer Repair Shop for the year was

Responses

$$400,000.$

$$400,000.$

$$1,080,000.$

$$1,080,000.$

$$240,000.$

$$240,000.$

$$520,000.$

$$520,000.$

Question $8$

Carla$$s Computer Repair Shop started the year with total assets of $$720,000$ and total liabilities of $$480,000.$ During the year, the business recorded $$1,200,000$ in computer repair revenues, $$680,000$ in expenses, and the company paid dividends of $$120,000.$

Total equity changed by what amount from the beginning of the year to the end of the year?

Responses

$$120,000.$

$$120,000.$

$$240,000.$

$$240,000.$

$$400,000.$

$$400,000.$

$$520,000.$

$$520,000.$

Question $9$

The accounting equation for Gudgeyes Enterprises is as follows:

Assets Liabilities Equity

$$280,000=$ $$120,000+$ $$160,000$

If Gudgeyes purchases office equipment on account for $$12,000,$ the accounting equation will change to

Assets $=$ Liabilities $+$ Equity

Responses

$$304,000=$