Questions from Financial Accounting

Q: Revenues are a. increases in paid-in capital resulting

Revenues are a. increases in paid-in capital resulting from the owners investing in the business. b. increases in retained earnings resulting from selling products or performing services. c. decrea...

Q: The financial statement that reports revenues and expenses is called the

The financial statement that reports revenues and expenses is called the a. income statement. b. balance sheet. c. statement of retained earnings. d. statement of cash flows.

Q: Another name for the balance sheet is the a. statement

Another name for the balance sheet is the a. statement of financial position. b. statement of earnings. c. statement of operations. d. statement of profit and loss.

Q: Dobson Corporation began the year with cash of $143,000

Dobson Corporation began the year with cash of $143,000 and land that cost $41,000. During the year, Dobson earned service revenue of $230,000 and had the following expenses: salaries, $185,000; rent,...

Q: Thompson Instruments had retained earnings of $340,000 at December

Thompson Instruments had retained earnings of $340,000 at December 31, 2015. Net income for 2016 totaled $185,000, and dividends declared for 2016 were $85,000. How much retained earnings should Thomp...

Q: Net income appears on which financial statement(s)? a

Net income appears on which financial statement(s)? a. Balance sheet b. Statement of retained earnings c. Income statement d. Both b and c

Q: Cash paid to purchase a building appears on the statement of cash

Cash paid to purchase a building appears on the statement of cash flows among the a. stockholders’ equity. b. operating activities. c. financing activities. d. investing activities.

Q: The stockholders’ equity of Voronsky Company at the beginning and end of

The stockholders’ equity of Voronsky Company at the beginning and end of 2016 totaled $119,000 and $138,000, respectively. Assets at the beginning of 2016 were $144,000. If the liabilities of Voronsky...

Q: Smith Company had the following on the dates indicated:

Smith Company had the following on the dates indicated: Smith had no stock transactions in 2016; thus, the change in stockholders’ equity for 2016 was due to net income and dividen...

Q: A business’s receipt of a $115,000 building, with

A business’s receipt of a $115,000 building, with a $75,000 mortgage payable, and issuance of $40,000 of common stock will a. increase assets by $40,000. b. increase stockholders’ equity by $115,000...