Accounting Exam 1 graded A+ with answers 100% verified

Which of the following entities pays federal income taxes? - Corporation Shareholders of a corporation: - have limited liability for the corporationʹs debts. The accounting assumption that states that the business, rather than its owners, is the reporting unit is the: - entity assumption. The CEO of Clarkson Company owns a vacation home in Hawaii. Clarkson Company owns a factory in Detroit where it is headquartered. Which of these properties is considered to be asset(s) of the business? - Only the factory in Detroit. Net income is computed as: - revenues ‐ expenses. On January 1, 2017, total assets for Wininger Technologies were $140,000; on December 31, 2017, total assets were $155,000. On January 1, 2017, total liabilities were $111,000; on December 31, 2017, total liabilities were $118,000. What is the amount of the change and the direction of the change in Wininger Technologiesʹ stockholdersʹ equity for 2017? - increase of $8000 Revenues $130,000 Other Expenses $47,000 Salaries Expense $20,000 Dividends $12,000 Utilities Expense $18,000 Advertising Expense $10,000 Building $15,000 Cash $107,000 Land $45,000 Common Stock $50,000 What are total liabilities at the end of the first year? - $ 94,000 The CORRECT data flow from one financial statement to the next is: - income statement, statement of retained earnings, balance sheet, statement of cash flows Cash dividends: - decrease retained earnings on the statement of retained earnings. The income statement: - covers a defined period of time. The ending balance of Cash and Cash Equivalents is reported on the: - Balance sheet and statement of cash flows the Statement of Retained Earnings is used to prepare the: - Balance Sheet. Long‐Term Notes Payable $60,000 Accounts Receivable $30,000 Accounts Payable $39,000 Building $57,000 Cash and Cash Equivalents $84,000 Common Stock $123,000 Interest Payable $1500 Land $43,000 Short‐term Notes Receivable $7000 Income Taxes Payable $13,000 Equipment $64,500 Supplies $5000 What is the amount of Retained Earnings at the end of the year? - $ 54,000