FINANCIAL ACCOUNTING EXAM 1

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FINANCIAL ACCOUNTING EXAM 1

LATEST WITH 350 ACTUAL EXAM

QUESTIONS AND CORRECT ANSWERS/

INTRO TO FINANCIAL ACCOU NTING

EXAM 1 (BRAND NEW)

The most important information needed to determine if companies can pay their current obligations is the

• projected net income for next year
• relationship between short-term and long-term liabilities
• net income for this year
• relationship between current assets and current liabilities - ANSWER-d.

relationship between current assets and current liabilities

The financial statement which presents a picture at a point in time of what a

business owns and what it owes is a(n):

• income statement.
• retained earnings statement.
• balance sheet.
• statement of cash flows.
• balance sheet

Which of the following is not a liability?Interest Payable

Unearned Service Revenue

Accounts Receivable 1 / 4

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Accounts Payable - ANSWER-Accounts Receivable

Ending retained earnings for a period is equal to beginning Retained earnings - Net income - Dividends.

Retained earnings + Net income - Dividends.

Retained earnings + Net income + Dividends.

Retained earnings - Net income + Dividends. - ANSWER-Retained earnings + Net income - Dividends.

Use the following data to determine the total dollar amount of assets to be classified as current assets.Whispering Winds Corp.Balance Sheet December 31, 2017

Cash $73000 Accounts receivable 99500 Inventory 149500 Prepaid insurance 75000 Stock investments (long-term) 196500 Land 196000 Buildings $208500 2 / 4

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Less: Accumulated depreciation (61500) 147000

Trademarks 115500 Total assets $1052000

Accounts payable $135000 Salaries and wages payable 10900 Mortgage payable 171500 Total liabilities $317400

Common stock $214100 Retained earnings 520500

Total stockholders' equity $734600 Total assets $1052000 Total liabilities and stockholders' equity $1052000

Entry field with correct answer

$247500

$397000

$593500

$317400 - ANSWER-casht+ accounts receivable + prepaid expenses + inventory + investments = $397000

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pg. 4 Use the following data to determine the total amount of working capital.

Sheridan Company Balance Sheet December 31, 2017

Cash $69500 Accounts receivable 102000 Inventory 140000 Prepaid insurance 90000 Stock investments (long-term) 193500 Land 185500 Buildings $227500

Less: Accumulated depreciation (72000) 155500

Trademarks 128500 Total assets $1064500

Accounts payable $138000 Salaries and wages payable 16400 Mortgage payable 155500 Total liabilities $309900

Common stock $231100 Retained earnings 523500 Total stockholders' equity $754600

Total liabilities and stockholders' equity $1064500

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