A+ Answers of the following Questions

use the following balance sheet and income statement information to answer questions 1–4:

Current assets    $  7,000 Net income         $  12,000

Current liabilities              4,000     Stockholders’ equity        27,000

Average assets   40,000  Total liabilities    9,000

Total assets        30,000 

Average common shares outstanding was 10,000

1. What is the total amount of working capital?

a. $1,000

b. $7,000

c. $2,000

d. $3,000

2. What is the current ratio?

a. 1.75 : 1

b. 1.6 : 1

c. 0.57 : 1

d. 2 : 1

3. What is the earnings per share?

a. $3.60

b. $4.00    

c. $1.20     

d. $0.83  

4. What is the debt to total assets?

a. 22.5 percent

b. 13 percent

c. 75 percent

d. 30 percent

5. The cost principle requires that when assets are acquired, they be recorded at

a. market value.

b. the amount paid for them.

c. selling price.

d. list price.

The following information applies to Questions 1 - 4.        

At the beginning of 2006 Oslo Co. had the following account balances:

               Assets                                  $10,000

               Liabilities                                6,000

               Common stock                     3,000

               Retained Earnings                1,000

During 2006 the following cash events occurred:

a. Provided services to customers for $8,000.

b. Repaid $2,000 of debt.

c. Owners invested an additional $3,000 in the business.

d. Incurred operating expenses of $5,000.

e. Dividends amounted to $1,000.

1. Oslo's net income for 2006 was:

a. $1,000

b. $2,000

c. $3,000

d. $4,000

2. Total assets at the end of 2006 are:

a. $  3,000

b. $13,000

c. $15,000

d. $18,000

3. Total liabilities at the end of 2006 are:

a. $ 0

b. $4,000

c. $6,000

d. $8,000

4. Retained earnings at the end of 2006 are:

a. $1,000

b. $2,000

c. $3,000

d. $4,000

5. The following amounts were drawn from the records of Gregory Co.:  Total Assets = $1,100; Common stock = $300; Retained Earnings = $200.  Based on this information, total liabilities must be equal to:

a. $300

b. $600

c. $800

d. $900

1. Hines Co. purchased land for $2,000 cash.  As a result of this event:

a. Cash flow from operating activities would decrease.

b. Cash flow from investing activities would increase.

c. Cash flow from financing activities would decrease.

d. Cash flow from investing activities would decrease.

2. Which of the following is a stockholders’ equity item:

a.   Property, Plant and Equipment

b. Accounts Payable

c. Inventory

d. Contributed Capital

3. Net Income is –

a. Assets minus Liabilities

b. Revenues minus Expenses

c. Contributed Capital minus Dividends

d. Stockholders’ Equity minus Liabilities

4. The Injoy Corp. has assets of $20,000 and stockholders’ equity of $12,000. The amount of its liabilities is:

a. $8,000

b. $12,000

c. $20,000

d. $32,000

5. Jumpy Company sold merchandise for $500,000. The merchandise that it sold had a cost of $300,000. Jumpy Company has net income of:

a. $200,000

b. $300,000

c. $500,000

d. $800,000

1. Which of the following would appear in the cash flow from operations section of the statement of cash flows?

a. cash paid to suppliers and employees

b. cash paid to purchase equipment

c. cash paid on notes payable

d. cash paid for dividends

2. ___________ includes cash, equipment and inventory.

a. Stockholders’ Equity

b. Net Income

c. Revenues

d. Assets

3. Baker Company earned $10,000 revenue for services provided.  Which of the following is correct?

a. Baker would credit Revenue.

b. Baker would debit Revenue.

c. Baker must first collect the revenue before recognizing it.

d. Baker would credit an asset.

4. Office equipment is classified on the balance sheet as

a. a current asset.

b. property, plant, and equipment.

c. an intangible asset.

d. a long-term investment.

5. Current assets divided by current liabilities is known as the

a. working capital.

b. current ratio.

c. profit margin.

d. capital structure.

1. No doubt one main reason that "caring" in the activity of teachers is still a rare subject of research lies in the many ways in which people have sought to define it. For example, in a recent study, Charles B. Hayes, Alice Ryan, and Elaine B. Zseller include the following terms under this concept: "compassion, feeling, emoting, love, prizing, valuing, concern, confirmation, and recognition of another." Their article, "The Middle School Child's Perceptions of Caring Teachers," appears in the November 1994 American Journal of Education (vol. 103, no. 1), 1-19.

From the attributes listed above, which do you think are the most important attributes for teachers to poses, and why?  What are the implications to student achievement in classrooms where teachers pose these attributes?  What are the differences between having this attributes, but still not have a personal relationship with your students or their families?  

2. Is it the schools’ responsibility to provide counseling services for their students?  Why would a school district want to provide these services?  What are the implications to student achievement by providing these additional services?

1. Which of the following is not an asset:

Accounts Payable

Furnishing and Equipment

Supplies

Cash     

2. Amy Co. acquired $500 worth of supplies on credit.  Which of the following journal entries would be recorded?

Debit supplies, credit cash

Debit cash, credit supplies

Debit supplies, credit accounts payable

Debit accounts payable, credit supplies payable

3. Baker Company earned $10,000 revenue for services provided.  Which of the following is correct?

Baker would credit Revenue.

Baker would debit Revenue.

Baker must first collect the revenue before recognizing it.

Baker would credit an asset.

4. Candy Company collected $5,000 from a customer on account.  What journal entry will Candy Company record?

Debit cash, credit accounts receivable

Debit cash, credit revenue

Debit accounts receivable, credit revenue

Debit accounts receivable, credit cash

None of the above

5. Ernie Corporation capitalized a $20,000 automobile.  Which of the following is mostly likely true?

Ernie recorded a liability for $20,000.

Ernie recorded an asset for $20,000.

Ernie recorded an expense for $20,000.

Ernie recorded revenue for $20,000.

1. Liabilities are generally classified on a balance sheet as

a. small liabilities and large liabilities.

b. present liabilities and future liabilities.

c. tangible liabilities and intangible liabilities.

d. current liabilities and long-term liabilities.

2. Office equipment is classified on the balance sheet as

a. a current asset.

b. property, plant, and equipment.

c. an intangible asset.

d. a long-term investment.

3. Which of the following is a measure of liquidity?

Working capital

Profit margin

Earnings per share

Debt to equity ratio

4. Current assets divided by current liabilities is known as the

working capital.

current ratio.

profit margin.

capital structure.

5. State the accounting equation:

Assets + Liabilities = Equity

Assets + Equity = Liabilities

Assets = Liabilities – Equity

Assets = Liabilities + Equity

use the following information to answer questions 1–5:

Benton Office Supplies

Balance Sheet

December 31, 2007

Cash      $    65,000           Accounts Payable             $  70,000

Prepaid Insurance             30,000   Salaries Payable 10,000

Accounts Receivable        50,000   Mortgage Payable                80,000

Inventory             70,000        Total Liabilities             $160,000

Land held for investment               75,000  

Land      90,000                 

Building $100,000                            Common Stock  $120,000

   Less Accumulated                         Retained Earnings              250,000

        Depreciation              (20,000)               80,000      Total stockholders’ equity          $370,000

Trademark              70,000                    Total Liabilities and

Total Assets        $530,000                     Stockholders’ Equity               $530,000

1. The total dollar amount of assets to be classified as current assets is

a. $290,000.

b. $215,000.

c. $180,000.

d. $145,000.

2. The total dollar amount of assets to be classified as property, plant, and equipment is

a. $320,000.

b. $170,000.

c. $245,000.

d. $190,000.

3. The total dollar amount of assets to be classified as investments is

a. $0.

b. $150,000.

c. $75,000.

d. $180,000.

4. The total amount of working capital is

a. $135,000.

b. $295,000.

c. $75,000.

d. $60,000.

5. The current ratio is

a. 1.94 : 1.

b. 1.57 : 1.

c. 3.14 : 1.

d. 2.69 : 1.

1. On which of the following financial statements would you expect to find revenues and expenses?

Balance Sheet

Income Statement

Statement of Cash Flows

Statement of Changes in Equity

2. On which of the following financial statements would you expect to find financing, operating, and investing activities?

Balance Sheet

Income Statement

Statement of Cash Flows

Statement of Changes in Equity

3. On which of the following financial statements would you expect to find assets, liabilities, and stockholders’ equity?

Balance Sheet

Income Statement

Statement of Cash Flows

Statement of Changes in Equity

4. Based on the following data, what is the amount of current assets?

Accounts payable………………………………………………………..        $31,000

Accounts receivable……………………………………………………..        50,000

Cash……………………………………………………………………….                15,000

Intangible assets…………………………………………………………           50,000

Inventory………………………………………………………………….             69,000

Long-term investments………………………………………………….       80,000

Long-term liabilities…………………………………………………………….              100,000

Marketable securities…………………………………………………….       40,000

Notes payable…………………………………………………………….           28,000

Plant assets………………………………………………………………            670,000

Prepaid expenses………………………………………………………..            1,000

a. $ 96,000

b. $175,000

c. $106,000

d. $105,000

5. In 2006 Fione Corporation had cash receipts of $14,000 and cash disbursements of $8,000.  Their ending cash balance at December 31, 2006 was $22,000.  What was their beginning cash balance?

a. $16,000

b. $20,000

c. $30,000

d. $28,000