Skip to content
Solved Assignments

Fundamentals of Accounting: Financial Statements, Journal Entries, and Cash Flow Analysis

Study on the basics of accounting, financial statements, and journal entries.

Preview 3 of 9 pages

See the first 3 pages exactly as they appear in the document.

  1. Page 1
    Read page 1 as text

    Fundamentals of Accounting: Financial Statements, Journal Entries, and Cash Flow Analysis 1. Which of the following is not an asset: a. Accounts Payable b. Furnishing and Equipment c. Supplies d. Cash 2. Amy Co. acquired $500 worth of supplies on credit. Which of the following journal entries would be recorded? a. Debit supplies, credit cash b. Debit cash, credit supplies c. Debit supplies, credit accounts payable d. Debit accounts payable, credit supplies payable 3. Baker Company earned $10,000 revenue for services provided. Which of the following is correct? a. Baker would credit Revenue . b. Baker would debit Revenue. c. Baker must first collect the revenue before recognizing it. d. Baker would credit an asset. 4. Candy Company collected $5,000 from a customer on account. What journal entry will Candy Company record? a. Debit cash, credit accounts receivable b. Debit cash, credit revenue c. Debit accounts receivable, credit revenue d. Debit accounts receivable, credit cash e. None of the above 5. Ernie Corporation capitalized a $20,000 automobile. Which of the following is mostly likely true? a. Ernie recorded a liability for $20,000. b. Ernie recorded an asset for $20,000. c. Ernie recorded an expense for $20,000. d. Ernie recorded revenue for $20,000. 6. Liabilities are generally classified on a balance sheet as a. small liabilities and large liabilities. b. present liabilities and future liabilities. c. tangible liabilities and intangible liabilities. d. current liabilities and long - term liabilities.

  2. Page 2
  3. Page 3
    Read page 3 as text

    7. Office equipment is classified on the balance sheet as a. a current asset. b. property, plant, and equipment. c. an intangible asset. d. a long - term investment. Use the following information to answer questions 8 – 12: Benton Office Supplies Balance Sheet December 31, 2007 Cash $ 65,000 Accounts Payable $ 70,000 Prepaid Insurance 30,000 Salaries Payable 10,000 Accounts Receivable 50,000 Mortgage Payable 80,000 Inventory 70,000 Total Liabilities $160,000 Land held for investment 75,000 Land 90,000 Building $100,000 Common Stock $120,000 Less Accumulated Retained Earnings 250,000 Depreciation (20,000) 80,000 Total stockholders’ equity $370,000 Trademark 70,000 Total Liabilities and Total Assets $530,000 Stockholders’ Equity $530,000 8. The total dollar amount of assets to be classified as current assets is a. $290,000. b. $215,000. c. $180,000. d. $145,000. = $65,000 + $30,000 + $50,000 + $70,000 = $215,000 9. The total dollar amount of assets to be classified as property, plant, and equipment is a. $320,000. b. $170,000. c. $245,000. d. $190,000. = $ 90,000 + ($100,000 - $20,000) = $170,000 10. The total dollar amount of assets to be classified as investments is

6 more pages in the full document

Unlock it once and it stays in your library, ready to chat with or turn into flashcards.

Unlock the full document

More Accounting study materials

See all

Study this document with CramX

Once it is in your library, every tool can work from it.