Which of the following does a balance sheet do? (Check all that apply) Shows the assets of a firm o Shows the revenues of a firm Measures the financial position of the firm at a point in time U Measures the activities of the firm over a period of time (e.g. a year) O Shows how much debt a firm has Which of the following are on a Balance Sheet? (Check all that apply) O Depreciation Expense O Property, Plant, and Equipment O Retained Earnings o Accounts Payable Sales Revenue Suppose Current Assets for a firm are $50, Long- Term Assets are $100, and Total Liabilities are $30. How much is the firm's total Owners' Equity? O $70 O $180 O $150 O $120 Suppose Net Income for a firm is $200 for the year and Dividends paid are $60. How much does Retained Earnings on the Balance Sheet change during the year? O Goes up by $140 O Does not change Goes up by $200 O Goes up by $260 Which of the following are on an Income Statement? (Check all that apply) Long-Term Debt O Selling, General, and Administrative Expense O Cost of Goods Sold O Accounts Receivable Interest Expense Given the following information (not all of which is relevant), what is Net Income? Sales Revenue = $5000 Dividends Paid = $200 Cash = $100 SG&A Expense = $400 Cost of Goods Sold = $1600 O $3300 O $2800 O $3000 O $3100 O $4800 Which of the following will impact income THIS year? O Spend $100 on research and development Spend $100 on purchases of inventory that is still not sold at the end of the year O Spend $100 to pay off short-term debt O Spend $100 on purchases of equipment Which of the following will result in the firm recognizing revenue this year? (Check all that apply) O Selling a product on credit 0 Receiving an advance deposit in cash from a customer O Delivering a service for which you had been paid in a prior year O A customer places an order for a new product Receiving cash for a product delivered in a prior year Suppose the following transaction(s) happen: A firm issues long-term debt and receives $50,000 in cash. What happens to the various sections of the balance sheet? Short-Term Assets go up by $50,000 and Long- Term Liabilities go up by $50,000 O Short-Term Assets go up by $50,000 and Owners' Equity goes down by $50,000 Short O Short-Term Assets go up by $50,000 and Long- Term Assets go down by $50,000 O Short-Term Assets go up by $50,000 and Long- Term Liabilities go down by $50,000 O Short-Term Assets go up by $50,000 and Owners' Equity goes up by $50,000 Suppose the following transaction(s) happen: A firm sells inventory that had cost $100 for $150. Of the $150 of sales, $120 is cash and $30 is credit. Which of the following effects on the balance sheet are correct? (Check all that apply) Note that none of the answers give ALL the effects. o Accounts Receivable goes up by $30 O Cash goes up by $150 O Accounts Payable goes up by $120 O Retained Earnings goes up by $50 Inventory goes up by $100 Suppose you buy a machine for $300,000 that is expected to last for 10 years, with no salvage value at that time. If the firm uses straight-line depreciation, how much depreciation expense is recognized per year? O $300,000 0 $30,000 O $0 O $10 We generate sales of $100,000 for the year. Of this amount, $80,000 are cash sales and $20,000 are credit sales. Based on past experience, we expect that 10% of the credit sales won't be collected. How much income should the firm recognize for the year? (Ignore anything else that is not referenced in the problem, such as cost of goods sold, interest expense, etc.) O $100,000 0 $90,000 O $98,000 O $82,000 O $80,000