Given the following list of accounts, calculate Total Assets: Accounts Receivable – $5,000; Capital Stock – $20,000; Cash – $19,300; Equipment – $15,400; Fees Earned – $44,400; Miscellaneous Expense – $18,200; Rent Expense – $4,150; Retained Earnings – $6,550; and Wages Expense – $13,900.
A.$84,100
B.$59,700
C.$46,250
D.$39.700
Hodges, Inc. had the following assets and liabilities as of September 30, 2013: Assets – $56,327 and Liabilities – $28,416. If assets increased by $3,914 and equity increased by $2,290 during October, what is the increase or decrease in liabilities of Hodges as of October 31, 2013?
A.($1,624)
B.$1,624
C.$6,204
D.($6,204)
The first month of operation showed the net cash from operating activities to be $3,760, the net cash from investing activities to be ($5,415), and the ending cash balance to be $3,425. The net cash from financing activities must be:
A.$1,770.
B.$5,080.
C.$5,750.
D.$12,600.
Hill Co. can further process Product O to produce Product P. Product O is currently selling for $65 per pound and costs $42 per pound to produce. Product P would sell for $82 per pound and would require an additional cost of $13 per pound to produce. The differential cost of producing Product P is $55 per pound.
A. True
B. False
Which of the following statements is true?
A.The revenue activities of a service business involve providing services to customers.
B.The revenue activities of a merchandising business involve the building of a product.
C.The revenue activities of a service business involve the building of a product.
D.The revenue activities of a merchandising business involve providing services to customers.
In computing the rate earned on total assets, interest expense is added to net income before dividing by average total assets.
A. True
B. False
Sarbanes-Oxley Act of 2002 requires which of the following reports to be prepared by the management of the company?
A.A report evaluating the probability that the company will remain in business.
B.A report showing management’s assessment of internal control.
C.A report assessing the market value of the company’s current stock price.
D.A report identifying the competency of the company’s board of directors.
The bank reconciliation:
A.should be prepared by an employee who records cash transactions.
B.is part of the internal control system.
C.is for information purposes only.
D.is sent to the bank for verification.
Anthony, Inc. buys land for $50,000 cash. The net effect on assets is:
A.$50,000 increase.
B.$0.
C.$50,000 decrease.
D.$25,000 increase.
Stockholders’ equity:
A.is usually equal to cash on hand.
B.includes paid-in capital and total liabilities.
C.includes retained earnings and paid-in capital.
D.is shown on the income statement.
Sales discounts are granted by the seller to customers for payment at the end of the month.
A. True
B. False
The direct write-off method records uncollectible accounts expense in the year the specific account receivable is determined to be uncollectible.
A. True
B. False
