Balance Sheet and Net Income

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Financial Accounting
 
1. Obligation of business that represents the claims of these against the assets of the less cash is called? A. Asset
B. An expense (WA)
C. Revenue
D. An equity
E. Liability
 
2. Net income results when
A. Assets > liability
B. Revenue = expenses
C. Revenue > expenses
D. Revenue < expenses
E. None 
 
3. Resources owned by a business are referred to as
A. Stockholders equity
B. Liability
C. Assets
D. Revenue (WA)
E. None   
 
4. Expenses are incurred
A. Only one rare occasion (WA)
B. To produce asset     (WA)
C. To produce liability (WA)
D. To generate revenue
E. None.
 
5. Which is NOT an accounting assumption
A. Integrity
B. Going concern
C. Time period
D. Economic entitle
E. None.
 
6. Susana metro invested $ 7,009.87 now, and will receive $20,000 at the end of 11 years. What annual arte of investment will she be earning on her investments?  
                 Fixed cost of $ 11                                                             Factor                                     7% 11 years                                                                      2.105                                     8% 11 years                                                                      2.332                            9% 11 years                                                                      2.580                            10% 11 years                                                                    2.853  

A. 8 %  (WA)
B. 7 %
C. 9 %
D. 10 %
E. None
 
7. Under the accurate basis of accounting?
A. Cash must be received before revenue us recognized
B. Net income is calculated by matching cash outflows against cash flow C. Events that change a company’s financial statements are recognized in the periods they occur rather than in the period in which cash flow is paid or received. D. The ledge account must be adjusted to reflect a cash basis of accounting before a final statements are prepared under general accepted accounting principle. E. None

 
8.           550
           950
           1,500
        B.   (WA)
 
9. What type of activity is the following “sold $ 120,000 worth of product? A. Operating activities
B. Financial activities
C. Investing activities
D. Non cash transaction (WA)
E. None
 
10. If the single amount of $1,400 is to be received in 2 years and discount at 12% its present value? Present value $1             0.797
Future value $1              1,254     
Present value annuity     1.690
Future value annuity       2,120
 
A. $502
B. 312
C. 676
D. 331  (WA)
E. None
 
11. What is amount of working capital?
 
Account payable                                                                                31,000 Accounts Receivable                                                                                           57,000 Cash                                                                                                                      15,000 Intangible asset                                                                                   50,000 Inventory                                                                                            69,000 Long-Term Investment                                                                      80,000 Long Liabilities                                                                            100,000 Market Scarcity                                                                                  40,000 Notes payable (Short-term)                                                               28,000 Land build and equipment                                                                  670,000 Prepaid expenses                                                                                     1,000  

A. 123,000   (WA)
B. 151,000
C. 203,000
D. 53,000
E. None   
 
12. Company A current liability equal 500,000, working capital 120,000. Company B same amount of...
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