Midterm 1 Practice Questions (Acct 201 Fall 2012)
Retained earnings at the end of the period is equal to
retained earnings at the beginning of the period plus net income minus liabilities.
retained earnings at the beginning of the period plus net income minus dividends.
assets plus liabilities.
Pinson Company began the year with retained earnings of $550,000. During the year, the company recorded revenues of $600,000, expenses of $380,000, and paid dividends of $140,000. What was Pinson’s retained earnings at the end of the year?
Patent would appear in which balance sheet section?
Property, plant, and equipment
A balance sheet shows
revenues, liabilities, and stockholders’ equity.
expenses, dividends, and stockholders’ equity.
revenues, expenses, and dividends.
assets, liabilities, and stockholders’ equity.
For 2012 Fielder Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 12,000. There were no preferred stock dividends. What was the 2012 earnings per share? a.
Use the following data to determine the total dollar amount of assets to be classified as current assets.
Koonce Office Supplies
December 31, 2012
Land held for Investment
Total Stockholders’ Equity
Total Liabilities and
Using the following balance sheet and income statement data, what is the total amount of working capital?
Average common shares outstanding was 10,000
Stockholders’ equity is increased by
McKinney Corporation had beginning retained earnings of $2,292,000 and ending retained earnings of $2,499,000. During the year they issued common stock totaling $141,000. What was their net income for the year? a.
10. The purchase of an asset by paying cash
increases assets and stockholders’ equity.
increases assets and liabilities.
decreases assets and increases liabilities.
leaves total assets unchanged.
Which of the following accounts has a normal debit balance?
When a company has performed a service but has not yet received payment, it
debits accounts receivable and credits revenue from services.
debits revenue from services and credits accounts receivable.
debits revenue from services and credits accounts payable.
makes no entry until the cash is received.
When a company receives a utility bill but will not pay it right away, it should
debit Utilities Expense and credit Accounts Receivable.
debit Utilities Expense and credit...
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