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Exam 2: Reporting Investing and Financing Results on the Balance Sheet

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Question 21

Multiple Choice

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Transactions include which two types of events?

A) Direct events, indirect events
B) Monetary events, production events
C) External exchanges, internal events
D) Past events, future events

E) A) and D)
F) A) and C)

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Question 22

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Match the term with its definition.(There are more definitions than terms.) TERM _____ (1)dr _____ (2)cr _____ (3)Classified Balance Sheet _____ (4)Common Stock _____ (5)Accounting Equation _____ (6)Transaction _____ (7)Accounts Payable _____ (8)Journal Entry DEFINTION A.The account credited when cash is received in exchange for stock issued. B.Another name for stockholders' equity or shareholders' equity. C.An exchange or event that has a direct impact on a company's financial statements. D.A balance sheet that has not yet been publicly released. E.When a company becomes included in the Fortune 500. F.A method of recording a transaction in debit/credit format. G.A transaction that is triggered automatically merely by the passage of time. H.The abbreviation for an item posted on the left side of a T-account. I.The expression that assets must equal liabilities plus stockholders' equity. J.The value of a company's public relations campaign. K.Amounts owed to suppliers for goods or services bought on credit. L.An event that has no effect on the balance sheet and is not recorded in the financial statements. M.Liabilities divided by assets. N.A balance sheet that has assets and liabilities categorized as current vs.noncurrent. O.The abbreviation for an item posted on the right side of a T-account.

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(1)H
(2)O
...

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Question 23

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For both accounts and amounts,the standard formatting for a journal entry lists:

Accounts Payable had a balance of $18,200 at the beginning of the month.During the month,three debits in the amounts of $4,700,$11,300,and $14,800 were posted to Accounts Payable,and three credits in the amounts of $3,600,$9,500,and $12,700 were posted to Accounts Payable.What is the ending balance of the Accounts Payable account?

The journal entry to record the purchase of supplies on account includes a credit to:

The requirement that transactions be recorded at their exchange price at the transaction date is called the:

A company started the year with a normal balance of $68,000 in the Inventory account.During the year,debits totaling $45,000 and credits totaling $55,000 were posted to the Inventory account.Which of the following statements about the Inventory account is correct?

Match each account name with the category that it would be included under in classified balance sheet. ACCOUNT ______ (1)Equipment ______ (2)Common Stock ______ (3)Supplies ______ (4)Retained Earnings ______ (5)Accounts Receivable ______ (6)Accounts Payable CATEGORY CA - Current Asset NCA - Noncurrent Asset CL - Current Liability NCL - Noncurrent Liability SE - Stockholders' Equity

The Lion Corp has the following information in regard to its Cash account for the month of August.The account had a normal balance of $25,000 on August 1.During August,it had three debit entries totaling $100,000.The balance in the Cash account on August 31 was $45,000.What was the total of the credit entries to the Cash account during the month of August?

Meridian Furniture had the transactions for the month that are summarized below. -Purchased $1,800 in supplies with cash. -Issued 200 shares of stock for $45 per share. -Ordered supplies at a cost of $4,000. -Paid a utility bill for $500. If the Cash account had a beginning balance of $10,000,what was the balance at the end of the month?

A debit may increase or decrease an account,depending on the type of account.

Cash had a beginning balance of $68,900.During the month,Cash was credited for $16,000 and debited for $18,300.At the end of the month,the balance is:

The characteristic shared by all liabilities is that they:

Listed below are components of several transactions.In the blank to the left indicate whether a debit (dr)or credit (cr)would be required to record the component of the transaction. _____ (1)Increase in Cash. _____ (2)Increase in Accounts Payable. _____ (3)Decrease in Notes Payable. _____ (4)Increase in Inventory. _____ (5)Increase in Common Stock. _____ (6)Decrease in Equipment.

Which one of the following is not a current asset?

Consider the following journal entry: Which of the following explanations best describes this journal entry?

If a company receives $20,000 cash from its customers on account and uses the cash to pay $20,000 to its suppliers on accounts,the net result is that:

Which account is affected by recording the buying of goods on credit?

How will a company's current ratio be affected by the purchase of equipment for cash?

Which of the following would a company be most likely to overstate if the company was trying to mislead potential creditors as to its ability to pay debts as they become due?