ACTG 244 EXAM #1 QUESTIONS WITH VERIFIED
ANSWERS
Which of the following is not an element of the financial statements? - Answers - Cash
Hacienda Company issued common stock for $250,000 cash. As a result of this event, -
Answers - assets increased and equity increased.
During 2013, Bledsoe Company earned $6,700 of cash revenue, paid cash dividends of
$950 to owners and paid $5,000 for cash expenses. Liabilities were unchanged. Which
of the following accurately describes the effect of these events on the elements of the
company's financial statements? - Answers - Assets increased by $750.
If Boyd Company reported assets of $1,800 and liabilities of $850, Boyd's total claims
totaled - Answers - $1,800.
As of December 31, 2013, Bloch Company had $8,000 of assets, $3,000 of liabilities
and $2,100 of retained earnings. The balance in the common stock account on the
December 31, 2013 balance sheet was - Answers - $2,900.
-Assets have to balance with liabilities + c/s + RE
Jacks Company had a net increase in cash from operating activities of $8,500 and a net
decrease in cash from financing activities of $1,750. If the beginning and ending cash
balances for the company were $3,500 and $12,000, then net cash change from
investing activities was: - Answers - an inflow or increase of $1,750.
-add the net increase of 8.5 to beginning balance of 3.5
-subtract the decrease in cash from financing of 1.75
-to get to the ending balance of 12 you must add the inflow of 1.75
The balance sheet of the Chesapeake Company contained the following accounts and
balances:
Cash $800 Notes Payable $500
Equity $650 Land ?
Based on the above information only, the amount or balance for Land must be: -
Answers - $350.
-Cash and Land= Notes payable and Equity
Petras Company engaged in the following transactions during 2012, its first year in
operations: (Assume all transactions are cash transactions)
, 1) Acquired $1,100 cash from the issue of common stock.
2) Borrowed $570 from a bank.
3) Earned $750 of revenues.
4) Paid expenses of $280.
5) Paid a $80 dividend.
Petras Company's net cash inflow from operating activities for 2012 is - Answers - $470.
-net cash inflow from operating activities =
Revenue - Expenses
Petras Company engaged in the following transactions during 2012, its first year in
operations: (Assume all transactions are cash transactions)
1) Acquired $1,700 cash from the issue of common stock.
2) Borrowed $1,170 from a bank.
3) Earned $1,350 of revenues.
4) Paid expenses of $400.
5) Paid a $200 dividend.
During 2013, Petras engaged in the following transactions: (Assume all transactions are
cash transactions)
1) Issued an additional $1,075 of common stock.
2) Repaid $745 of its debt to the bank.
3) Earned revenues of $1,500.
4) Incurred expenses of $660.
5) Paid dividends of $250.
The amount of retained earnings on Petras's 2013 balance sheet is - Answers - $1340
-add the earned revenues: $1350 + $1500= $2850
-subtract expenses & dividends: $400, $200, $250, $660
The year-end financial statements of Greenway Company contained the following
elements and corresponding amounts: Assets = $29,000; Liabilities = ?; Common Stock
= $5,900; Revenue = $12,800; Dividends = $1,200; Beginning Retained Earnings =
$4,200; Ending Retained Earnings = $7,900.
Based on this information, the amount of expenses on Greenway's income statement
was - Answers - $7,900.
-Ending retained earnings is the only number you need
Ruiz Company provided services for $37,500 cash during the 2013 accounting period.
Ruiz incurred $27,000 expenses on account during 2013, and by the end of the year,
$10,500 of that amount had been paid with cash. Assuming that these are the only
ANSWERS
Which of the following is not an element of the financial statements? - Answers - Cash
Hacienda Company issued common stock for $250,000 cash. As a result of this event, -
Answers - assets increased and equity increased.
During 2013, Bledsoe Company earned $6,700 of cash revenue, paid cash dividends of
$950 to owners and paid $5,000 for cash expenses. Liabilities were unchanged. Which
of the following accurately describes the effect of these events on the elements of the
company's financial statements? - Answers - Assets increased by $750.
If Boyd Company reported assets of $1,800 and liabilities of $850, Boyd's total claims
totaled - Answers - $1,800.
As of December 31, 2013, Bloch Company had $8,000 of assets, $3,000 of liabilities
and $2,100 of retained earnings. The balance in the common stock account on the
December 31, 2013 balance sheet was - Answers - $2,900.
-Assets have to balance with liabilities + c/s + RE
Jacks Company had a net increase in cash from operating activities of $8,500 and a net
decrease in cash from financing activities of $1,750. If the beginning and ending cash
balances for the company were $3,500 and $12,000, then net cash change from
investing activities was: - Answers - an inflow or increase of $1,750.
-add the net increase of 8.5 to beginning balance of 3.5
-subtract the decrease in cash from financing of 1.75
-to get to the ending balance of 12 you must add the inflow of 1.75
The balance sheet of the Chesapeake Company contained the following accounts and
balances:
Cash $800 Notes Payable $500
Equity $650 Land ?
Based on the above information only, the amount or balance for Land must be: -
Answers - $350.
-Cash and Land= Notes payable and Equity
Petras Company engaged in the following transactions during 2012, its first year in
operations: (Assume all transactions are cash transactions)
, 1) Acquired $1,100 cash from the issue of common stock.
2) Borrowed $570 from a bank.
3) Earned $750 of revenues.
4) Paid expenses of $280.
5) Paid a $80 dividend.
Petras Company's net cash inflow from operating activities for 2012 is - Answers - $470.
-net cash inflow from operating activities =
Revenue - Expenses
Petras Company engaged in the following transactions during 2012, its first year in
operations: (Assume all transactions are cash transactions)
1) Acquired $1,700 cash from the issue of common stock.
2) Borrowed $1,170 from a bank.
3) Earned $1,350 of revenues.
4) Paid expenses of $400.
5) Paid a $200 dividend.
During 2013, Petras engaged in the following transactions: (Assume all transactions are
cash transactions)
1) Issued an additional $1,075 of common stock.
2) Repaid $745 of its debt to the bank.
3) Earned revenues of $1,500.
4) Incurred expenses of $660.
5) Paid dividends of $250.
The amount of retained earnings on Petras's 2013 balance sheet is - Answers - $1340
-add the earned revenues: $1350 + $1500= $2850
-subtract expenses & dividends: $400, $200, $250, $660
The year-end financial statements of Greenway Company contained the following
elements and corresponding amounts: Assets = $29,000; Liabilities = ?; Common Stock
= $5,900; Revenue = $12,800; Dividends = $1,200; Beginning Retained Earnings =
$4,200; Ending Retained Earnings = $7,900.
Based on this information, the amount of expenses on Greenway's income statement
was - Answers - $7,900.
-Ending retained earnings is the only number you need
Ruiz Company provided services for $37,500 cash during the 2013 accounting period.
Ruiz incurred $27,000 expenses on account during 2013, and by the end of the year,
$10,500 of that amount had been paid with cash. Assuming that these are the only
