class exercises, account classification ,Dan transaction analys

MBA-520 | Account Classification | Baker

I. Classify the following items as an Asset(A), Liability (L) or Equity (E).

Account	Account Type
Accounts Payable
Accounts Receivable
Accrued Expenses Payable
Common Stock
Equipment
Land
Long-Term Debt
Merchandise Inventory
Notes Payable
Prepaid Expenses
Retained Earnings
Supplies

II. Suppose you are analyzing the financial statements of Smith, Inc. Identify each item with its appropriate financial​ statement, using the following​ abbreviations: Income statement​ (I), Statement of retained earnings​ (R), Balance sheet​ (B), and Statement of cash flows​ (C). Three items appear on two financial​ statements, and one item shows up on three statements.

Account or Heading	Financial Statement
Salary Expense
Dividends
Accounts Payable
Net Income
Common Stock
Inventory
Interest Revenue
Cash
Retained Earnings
Long-Term Debt
Increase or Decrease in Cash
Net Cash Provided by Operating Activities
Sales Revenue
Net Cash used for Financing Activities

III. For each of the following​ questions, indicate which financial statement would most likely be used to provide the information. Use the following​ abbreviations: Income statement​ (I), Statement of retained earnings​ (R), Balance sheet​ (B), and Statement of cash flows​ (C).

a) What were the company's net sales for the year?

b) What assets does the company have?

c) How much cash was generated by operating activities?

d) Why did the company's retained earnings change during the year?

e) How much in total debt does the company have?

f) How well did the company perform during the year?

g) Did the company declare a dividend during the year?

h) How much cash did the company generate and spend during the year?

i) What is the company's financial position at the end of the year?