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Wall Street Prep Accounting Crash Course Exam
||Verified Exam!!!(Version 1 & 2)Includes Accurate And
Verified Questions||Newest Exam!!!
Consider a single business transaction's impact on the
balance sheet. Which of the following could NOT possibly
occur as a result of this single transaction?
A) An increase in an asset and a decrease in an asset.
B) A decrease in stockholders' equity and a decrease in an
asset.
C) An increase in a liability and a decrease in an asset.
D) An increase in stockholders' equity and an increase in
an asset. - ANSWER-C) An increase in a liability and a
decrease in an asset.
A company's June 1, 2014 balance sheet reported total
assets of $150,000 and total liabilities of $60,000. During
June 2014, the company completed the following
transactions:
- Paid a note payable using $10,000 cash (no interest was
paid)
- Collected a $9,000 accounts receivable
- Paid a $5,000 accounts payable
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- Purchased a truck for $5,000 cash and by signing a
$20,000 note payable from a bank.
The company's June 30, 2014 balance sheet would report
which of the following?
A) $150,000 assets, $60,000 liabilities, $90,000
Stockholder's Equity
B) $155,000 assets, $65,000 liabilities, $90,000
Stockholder's Equity
C) $160,000 assets, $75,000 liabilities, $85,000
Stockholder's Equity
D) $170,000 assets, $100,000 liabilities, $70,000
Stockholder's Equity - ANSWER-Option B) $155,000
assets, $65,000 liabilities, $90,000 Stockholder's Equity
A company's June 1, 2014 balance sheet reported total
assets of $120,000 and total liabilities of $40,000. During
June 2014, the following transactions occurred:
1. The company issued stock and collected cash totaling
$30,000.
2. The company paid an account payable of $6,000.
3. The company purchased supplies for $1,000 with cash.
4. The company purchased land for $60,000 by paying
$10,000 with cash and signing a note payable for the
balance.
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What is total stockholders' equity after the transactions
above? - ANSWER-$110,000
Lemon has provided the following information for its recent
year of operation:
- The common stock account balance at the beginning of
the year was $20,000 and the year-end balance was
$25,000.
- The additional paid-in capital account balance increased
$2,500 during the year.
- The retained earnings balance at the beginning of the
year was $75,000 and the year-end balance was $91,000.
- Net income was $26,000.
How much were Lemon's dividends during its recent year
of operation? - ANSWER-$10,000
(Ending retained Earnings = Beginning Retained Earnings
+ Net Income - Dividends declared)
At the beginning of April, Jamie Corporation's assets
totaled $240,000 and liabilities totaled $60,000. During
April, the following summarized transactions occurred:
- Additional shares of stock were sold for $20,000 cash.
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- A building costing $95,000 was purchased using $10,000
cash and by signing an $85,000 long-term note payable.
- Short-term investments costing $9,000 were purchased
using cash.
- $10,000 was paid to an employee as a loan; the
employee signed a six-month note in exchange for the
loan.
How much are Jamie's total assets at the end of April? -
ANSWER-$345,000
ABC Company's total stockholders' equity at the beginning
of the year was $200,000. During the year ABC reported
the following:
- Net loss of $30,000.
- Stock issued in exchange for land totaling $80,000.
- Collections of accounts receivable $40,000.
- Dividends paid totaling $2000.
What is ABC's total stockholders' equity at the end of the
year? - ANSWER-$248,000
During 2014, Jones Corporation incurred operating
expenses amounting to $100,000 of which $75,000 was
paid in cash; the remaining balance will be paid during
Wall Street Prep Accounting Crash Course Exam
||Verified Exam!!!(Version 1 & 2)Includes Accurate And
Verified Questions||Newest Exam!!!
Consider a single business transaction's impact on the
balance sheet. Which of the following could NOT possibly
occur as a result of this single transaction?
A) An increase in an asset and a decrease in an asset.
B) A decrease in stockholders' equity and a decrease in an
asset.
C) An increase in a liability and a decrease in an asset.
D) An increase in stockholders' equity and an increase in
an asset. - ANSWER-C) An increase in a liability and a
decrease in an asset.
A company's June 1, 2014 balance sheet reported total
assets of $150,000 and total liabilities of $60,000. During
June 2014, the company completed the following
transactions:
- Paid a note payable using $10,000 cash (no interest was
paid)
- Collected a $9,000 accounts receivable
- Paid a $5,000 accounts payable
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- Purchased a truck for $5,000 cash and by signing a
$20,000 note payable from a bank.
The company's June 30, 2014 balance sheet would report
which of the following?
A) $150,000 assets, $60,000 liabilities, $90,000
Stockholder's Equity
B) $155,000 assets, $65,000 liabilities, $90,000
Stockholder's Equity
C) $160,000 assets, $75,000 liabilities, $85,000
Stockholder's Equity
D) $170,000 assets, $100,000 liabilities, $70,000
Stockholder's Equity - ANSWER-Option B) $155,000
assets, $65,000 liabilities, $90,000 Stockholder's Equity
A company's June 1, 2014 balance sheet reported total
assets of $120,000 and total liabilities of $40,000. During
June 2014, the following transactions occurred:
1. The company issued stock and collected cash totaling
$30,000.
2. The company paid an account payable of $6,000.
3. The company purchased supplies for $1,000 with cash.
4. The company purchased land for $60,000 by paying
$10,000 with cash and signing a note payable for the
balance.
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What is total stockholders' equity after the transactions
above? - ANSWER-$110,000
Lemon has provided the following information for its recent
year of operation:
- The common stock account balance at the beginning of
the year was $20,000 and the year-end balance was
$25,000.
- The additional paid-in capital account balance increased
$2,500 during the year.
- The retained earnings balance at the beginning of the
year was $75,000 and the year-end balance was $91,000.
- Net income was $26,000.
How much were Lemon's dividends during its recent year
of operation? - ANSWER-$10,000
(Ending retained Earnings = Beginning Retained Earnings
+ Net Income - Dividends declared)
At the beginning of April, Jamie Corporation's assets
totaled $240,000 and liabilities totaled $60,000. During
April, the following summarized transactions occurred:
- Additional shares of stock were sold for $20,000 cash.
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- A building costing $95,000 was purchased using $10,000
cash and by signing an $85,000 long-term note payable.
- Short-term investments costing $9,000 were purchased
using cash.
- $10,000 was paid to an employee as a loan; the
employee signed a six-month note in exchange for the
loan.
How much are Jamie's total assets at the end of April? -
ANSWER-$345,000
ABC Company's total stockholders' equity at the beginning
of the year was $200,000. During the year ABC reported
the following:
- Net loss of $30,000.
- Stock issued in exchange for land totaling $80,000.
- Collections of accounts receivable $40,000.
- Dividends paid totaling $2000.
What is ABC's total stockholders' equity at the end of the
year? - ANSWER-$248,000
During 2014, Jones Corporation incurred operating
expenses amounting to $100,000 of which $75,000 was
paid in cash; the remaining balance will be paid during
