ACCOUNTING 211 FULLY SOLVED TEST PAPER GRADED A+

ACCOUNTING 211 FULLY SOLVED TEST PAPER
GRADED A+

◉ Salaries expense appears on which of the following statements.
Answer: Income statement


◉ Prevor Corporation reports the following account balances at the
end of its first year of operation:


Accounts Payable $30,000
Accounts Receivable 16,500
Cash 14,000
Common Stock 20,000
Expenses 110,500
Land 40,000
Revenues 133,000
Supplies 2,000


Prevor's total liabilities equal:.
Answer: 30,000

, ◉ The income statement reports all of the following except.
Answer: Assets owned by a business


◉ Accounts payable appear on which of the following statements.
Answer: Balance sheet


◉ Speedy has net income of $18,955, and assets at the beginning of
the year of $200,000. Assets at the end of the year total $246,000.
Compute its return on assets.
Answer: 8.5%


◉ Doc's Ribhouse had beginning equity of $52,000; net income of
$35,000, and Dividends by the company of $12,000. Calculate the
ending equity.
Answer: 75,000


◉ All of the following are classified as liabilities except.
Answer: Accounts receivable


◉ Custom Air purchased $5,000 of supplies on account. The correct
journal entry to record this transaction is.
Answer: Supplies 5,000
Accounts Payable 5,000