1) Net income:
A) is calculated by subtracting total expenses and totaldividends from total revenues.
B) occurs when total revenues are less than total expenses.
C) is often referred to as the "bottom line" on an incomestatement.
D) decreases total stockholders' equity.
2) On January 1, 2017, total assets for Wininger Technologieswere $140,000; on December 31, 2017, total assets were $155,000. OnJanuary 1, 2017, total liabilities were $111,000; on December 31,2017, total liabilities were $118,000. What is the amount of thechange and the direction of the change in Wininger Technologies'owners' equity for 2017?
A) decrease of $8000
B) increase of $8000
C) increase of $22,000
D) decrease of $22,000
3) Golden Company had the following accounts and balances at theend of the year. What are total assets at the end of the year?
Cash | $75,000 |
Accounts Payable | $14,000 |
Common Stock | $21,000 |
Cost of Goods Sold | $95,000 |
Dividends Declared and Paid | $12,000 |
Operating Expenses | $12,000 |
Accounts Receivable | $55,000 |
Inventory | $42,000 |
Long-term Notes Payable | $33,000 |
Revenues | $130,000 |
Salaries Payable | $28,000 |
A) $75,000
B) $117,000
C) $130,000
D) $172,000
4) The CORRECT data flow from one financial statement to thenext is:
A) statement of retained earnings, income statement, balancesheet, statement of cash flows.
B) balance sheet, statement of retained earnings, incomestatement, statement of cash flows.
C) statement of retained earnings, income statement, statementof cash flows, balance sheet.
D) income statement, statement of retained earnings, balancesheet, statement of cash flows.
5) Potter Company reports the following line items:
Long-Term Notes Payable | $50,000 |
Accounts Receivable | $28,000 |
Accounts Payable | $37,000 |
Building | $55,000 |
Cash and Cash Equivalents | $80,000 |
Salaries Expense | $25,500 |
Service Van | $26,000 |
Interest Payable | $1,500 |
Land | $40,000 |
Short-term Investments | $5,000 |
Income Taxes Payable | $10,000 |
Equipment | $59,500 |
Supplies | $5,000 |
Service Revenue | $104,000 |
Supplies Expense | $20,000 |
Utilities Expense | $11,500 |
Income Tax Expense | $13,000 |
What is net income?
A) $26,000
B) $34,000
C) $59,500
D) $104,000
6) Analyze each of the following transactions in terms of theireffects on the accounting equation of Osgood Delivery Service. Thecompany is a sole proprietorship. Enter the correct amounts in thecolumns of the spreadsheet.
a) James Osgood contributes $75,000 cash to thebusiness in exchange for capital.
b) The business purchases $750 of office supplies onaccount.
c) The business pays cash to purchase a delivery vanfor $25,000.
d) Services are performed for clients and $5,000 cash isreceived.
e) Cash is paid for rent expense, $800 and utilitiesexpense, $400.
f) James Osgood withdraws $1,000 from the businessfor personal use.
| Cash | Accts. Receiv- able | Office Supplies | Delivery Van | Accts. Payable | Osgood, Capital | Osgood, With- drawals | Service Revenue | Rent Expense | Utilities Expense |
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b | | | | | | | | | | |
c | | | | | | | | | | |
d | | | | | | | | | | |
e | | | | | | | | | | |
f | | | | | | | | | | |
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