Exam 2: Basic Financial Statements

The total liabilities of Hogan's Company on the balance sheet are $270,000; this amount is equal to three-fourths of the total assets. What is the amount of owners' equity?

Which of the following activities is not a category into which cash flows are classified?

If cash flows from operating activities is a negative amount:

The major outgrowth from business failures and allegations of fraudulent financial reporting during the 1990's was the passage of the Securities and Exchange Act.

The change in owners' equity from one balance sheet to the next is partially explained by the:

If total assets of Hercules Manufacturing, Inc. are $556,000, Equipment is carried in Hercules Manufacturing accounting records at:

Computation of assets, liabilities, and owners' equity after a series of transactions. On April 30, 2009, the balance sheet of China Collectibles showed total assets of $700,000, total liabilities of $400,000, and owners' equity of $300,000. The following transactions occurred in May of 2009: (1) Capital stock was issued in exchange for $165,000 cash. (2) The business purchased equipment for $360,000, paying $160,000 cash and issuing a note payable for $200,000. (3) The business paid $70,000 of its accounts payable. (4) The business collected $54,000 of its accounts receivable. Compute the following as of May 31, 2009: (A.) Total assets $___________ (B.) Total liabilities $___________ (C.) Owners' equity $___________

If total assets of Hercules Manufacturing, Inc. are $556,000, Retained Earnings at December 31, 2010, must be:

The realization principle states that the activities of an entity should be kept separate from those of its owner.

Owners' equity in a business decreases as a result of which of the following?

The concept of adequate disclosure means that:

The payment of a business debt not including interest:

If the Notes Payable is $10,000, the December 31, 2011 cash balance is:

The practice of showing assets on the balance sheet at their cost, rather than at their current market value is explained, in part, by the fact that cost is supported by objective evidence that can be verified by independent experts.

From the following accounts and amounts prepare a balance sheet for the Swell Company for December 31, 2010. You must compute the amount for retained earnings to complete the balance sheet. Accounts Payable \ 61,250 Accounts Receivable \ 70,500 Building \ 50,000 Capital Stock \ 50,000 Cash \ 64,000 Equipment \ 30,000 Insurance Expense \ 5,000 Land \ 125,000 Notes Payable \ 175,000 Sales Revenue \ 25,000 Salaries Expense \ 20,000

The collection of an account receivable will cause total assets to decrease.

For the month of August, net cash flows from operating activities for Astoria were:

During the current year, the assets of Quality Stairs increased by $175,000 and the liabilities decreased by $15,000. If the owners' equity in the business is $475,000 at the end of the year, the owners' equity at the beginning of the year must have been:

If the Cash balance at December 31, 2011 is $67,500, the Notes Payable balance is:

If Cash at December 31, 2009, is $66,000, total assets amount to: