Test Bank for Financial Accounting 11th Edition Robert Libby, Patricia Libby, Frank Hodge

TEST BANK FOR
Financial Accounting 11th Edition Robert Libby, Patricia Libby, Frank Hodge

Answers are at the end of each Chapter

Chapter 1

Student name:__________
1) Determine the missing amounts for each independent case below. Assume the amounts
shown are at the end of the company's first year of operation.
Company Total Total Total Total Net Income Stockholders
Name Revenue Assets Expenses Liabilitie (Loss) ' Equity
s
Randolph $ $ $ $
600,00 450,00 350,00 130,000
0 0 0
Newman $ $ $ $ 75,000
105,00 80,000 10,000
0
Wiseman $ $ $(30,000 $ 100,000
190,00 70,000 )
0
Martin $ $ $ $
180,00 215,00 115,00 75,000
0 0 0
VanTasse $ $ $ $ 79,000
l 55,000 75,000 19,000

,Question Details
AACSB : Knowledge Application
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Difficulty : 2 Medium
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Distinguish different financial statements
Type : Static
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Gradable : manual




2) Frank’s Flower Company, a small retail store that sells flowers, started business on
January 1, 2022. At the end of January 2022, the following information was available:
Sales of flowers for cash $ 150,000
Sales of flowers for credit (not yet collected) 30,000
Cost of flowers which were sold and paid for during January 90,000
Expenses during January incurred, and paid for, during January unless otherwise noted:
Salaries $ 10,000
Telephone 500
Office supplies (all used) 300
Electricity 600
Rent on the store for January, 2022 (will not be paid until 2,000
February, 2022)
Required:A.Using the above information, prepare the income statement for Frank’s Flower
Company for the month ended January 31, 2022.
B.What is the amount of cash flows provided by operating activities to be presented on the
statement of cash flows?

,Question Details
AACSB : Knowledge Application
AICPA : BB Critical Thinking
AICPA : FN Measurement
Bloom's : Apply
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Distinguish different financial statements
Type : Static
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 3 Hard
Gradable : manual




3) Indicate on which financial statement you would expect to find each of the following. If
an item can be found on more than one statement, list each statement.

Example: Cash Balance Sheet and Statement of Cash Flows
Notes payable ___________blank
Salaries expense ___________blank
Cost of goods sold ___________blank
Sales revenue ___________blank
Inventory ___________blank
Income tax expense ___________blank
Dividends declared ___________blank
Retained earnings ___________blank
Accounts payable ___________blank
Equipment ___________blank

, Question Details
AICPA : BB Critical Thinking
AICPA : FN Measurement
Learning Objective : 01-01 Recognize the information conveyed in each of the four basic financial sta
Topic : Distinguish different financial statements
Type : Static
AACSB : Reflective Thinking
Difficulty : 1 Easy
Bloom's : Remember
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Gradable : manual




4) For each of the following items that appear on the balance sheet, identify each as an asset
(A), liability (L), or element of stockholders' equity (SE). For any item that would not appear on
the balance sheet, write the letter, N.

Retained earnings ___________blank
Accounts payable ___________blank
Selling expense ___________blank
Common stock ___________blank
Accounts receivable ___________blank
Income tax expense ___________blank
Dividends ___________blank
Property and equipment ___________blank