d102 unit tests/83 Questions with
Verified Answers
What is a liability? - -Obligation to pay cash, transfer other assets, or provide
services to someone else
- The Freedom Rock Corporation has total assets of $94,000 and total
liabilities of $37,500.
What is the amount of its owners' equity? - -$56,500
- A company has these accounts in its financial records at the end of the
year:
Land
Retained Earnings
Accounts Receivable
Loans Payable
Accounts Payable
Capital Stock
Cash
Which accounts are liabilities? - -Accounts Payable and Loans Payable
- What is expense? - -The amount of assets consumed through business
operations
- Orange Zest Company is a publicly traded corporation. Orange Zest
Company is closely followed by several financial analysts. These analysts
publish forecasts for what Orange Zest Company's net income for the year
will be. If Orange Zest Company's announced net income is lower than the
average of these analyst forecasts, the value of Orange Zest Company's
shares can drop dramatically. The past few months have been tough ones for
Orange Zest Company. Orange Zest Company's chief financial officer (CFO)
is worried that the company will not be able to reach the amount forecasted
by the financial analysts. The CFO is eagerly awaiting the computation of
Orange Zest Company's net income for the year.
Here are some accounts from Orange Zest Company's financial statements:
Cost of Goods Sold
Cash
Retained Earnings
Sales
Inventory
Income Tax Expense
Loans Payable
What should be used to compute Orange Zest Company's net income? - -
Sales, Cost of Goods Sold, and Income Tax Expense
, - Here are some accounts from Whole Pine Inc.'s financial statements:
Inventory
Accounts Payable
Number of Shares Outstanding
Capital Stock
Accounts Receivable
Retained Earnings
Net Income
Building
Loans Payable
What is used to compute Whole Pine's earnings per share (EPS)? - -Net
Income and Number of Shares Outstanding
- The following are some financial statement items for the year for a
company:
cash paid for dividends
cash received from new loans
cash paid to employees for wages
cash paid to purchase a new building
cash received from customers
cash received from the sale of land
cash received as new investment from owners
What is included in the computation of this company's total cash from
financing activities? - -Cash paid for dividends, cash received from new
loans, and cash received as a new investment from owners
- What is an investing activity? - -Buying buildings
- For which balance sheet account does the statement of cash flows provide
a detailed explanation of the year-to-year change? - -Cash
- What is a use of cash in an investing activity? - -Buying a building
- With respect to liabilities, what does a credit represent? - -An increase
- With respect to owners' equity, what does a debit represent? - -A decrease
- On January 1, a company had these assets, liabilities, and equity:
Cash$100Inventory140Accounts Payable70Paid-In Capital150Retained
Earnings20
During the year, the company entered into the following transactions:
Sold inventory costing $80 for a total of $170; cash of $30 was received, and
the remaining $140 was put on account
Paid cash for advertising of $25
Paid cash for electricity of $30
Verified Answers
What is a liability? - -Obligation to pay cash, transfer other assets, or provide
services to someone else
- The Freedom Rock Corporation has total assets of $94,000 and total
liabilities of $37,500.
What is the amount of its owners' equity? - -$56,500
- A company has these accounts in its financial records at the end of the
year:
Land
Retained Earnings
Accounts Receivable
Loans Payable
Accounts Payable
Capital Stock
Cash
Which accounts are liabilities? - -Accounts Payable and Loans Payable
- What is expense? - -The amount of assets consumed through business
operations
- Orange Zest Company is a publicly traded corporation. Orange Zest
Company is closely followed by several financial analysts. These analysts
publish forecasts for what Orange Zest Company's net income for the year
will be. If Orange Zest Company's announced net income is lower than the
average of these analyst forecasts, the value of Orange Zest Company's
shares can drop dramatically. The past few months have been tough ones for
Orange Zest Company. Orange Zest Company's chief financial officer (CFO)
is worried that the company will not be able to reach the amount forecasted
by the financial analysts. The CFO is eagerly awaiting the computation of
Orange Zest Company's net income for the year.
Here are some accounts from Orange Zest Company's financial statements:
Cost of Goods Sold
Cash
Retained Earnings
Sales
Inventory
Income Tax Expense
Loans Payable
What should be used to compute Orange Zest Company's net income? - -
Sales, Cost of Goods Sold, and Income Tax Expense
, - Here are some accounts from Whole Pine Inc.'s financial statements:
Inventory
Accounts Payable
Number of Shares Outstanding
Capital Stock
Accounts Receivable
Retained Earnings
Net Income
Building
Loans Payable
What is used to compute Whole Pine's earnings per share (EPS)? - -Net
Income and Number of Shares Outstanding
- The following are some financial statement items for the year for a
company:
cash paid for dividends
cash received from new loans
cash paid to employees for wages
cash paid to purchase a new building
cash received from customers
cash received from the sale of land
cash received as new investment from owners
What is included in the computation of this company's total cash from
financing activities? - -Cash paid for dividends, cash received from new
loans, and cash received as a new investment from owners
- What is an investing activity? - -Buying buildings
- For which balance sheet account does the statement of cash flows provide
a detailed explanation of the year-to-year change? - -Cash
- What is a use of cash in an investing activity? - -Buying a building
- With respect to liabilities, what does a credit represent? - -An increase
- With respect to owners' equity, what does a debit represent? - -A decrease
- On January 1, a company had these assets, liabilities, and equity:
Cash$100Inventory140Accounts Payable70Paid-In Capital150Retained
Earnings20
During the year, the company entered into the following transactions:
Sold inventory costing $80 for a total of $170; cash of $30 was received, and
the remaining $140 was put on account
Paid cash for advertising of $25
Paid cash for electricity of $30
