2023 Multiple Choice Question 92 The income statement for the year 2013 of Fugazi Co contains the | Assignments Online
2023 Multiple Choice Question 92 The income statement for the year 2013 of Fugazi Co contains the | Assignments Online
Assignments Online 2023 Business Finance
Multiple Choice Question 92
The income statement for the year 2013 of Fugazi Co. contains the following information:
Revenues$70,000
Expenses:
Salaries and Wages Expense$45,000
Rent Expense12,000
Advertising Expense8,000
Supplies Expense6,000
Utilities Expense2,500
Insurance Expense2,000
Total expenses75,500
Net income (loss)($5,500)
After the revenue and expense accounts have been closed, the balance in Income Summary will be
a credit balance of $70,000.
$0.
a debit balance of $5,500.
a credit balance of $5,500.
The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2013:
Accounts payable$ 19,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash11,000
Common stock40,000
Dividends14,000
Depreciation expense12,000
Equipment190,000
Insurance expense3,000
Note payable, due 6/30/1470,000
Patents20,000
Prepaid insurance (12-month policy)6,000
Rent expense17,000
Retained earnings (1/1/13)65,000
Salaries and wages expense32,000
Service revenue125,000
Supplies4,000
Supplies expense6,000
What is the book value of the equipment at December 31, 2013?
Multiple Choice Question 133
The following information is for Bright Eyes Auto Supplies:
Bright Eyes Auto Supplies
Balance Sheet
December 31, 2013
Cash$ 20,000Accounts Payable$ 65,000
Prepaid Insurance40,000Salaries and Wages Payable25,000
Accounts Receivable50,000Mortgage Payable75,000
Inventory70,000Total Liabilities$165,000
Land Held for Investment90,000
Land125,000
Building$100,000Common Stock$120,000
Less AccumulatedRetained Earnings250,000370,000
Depreciation(30,000)70,000
Trademark 70,000Total Liabilities and
Total Assets$535,000Stockholders’ Equity$535,000
The total dollar amount of liabilities to be classified as current liabilities is
$25,000.
$65,000.
$90,000.
$165,000.
After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to
the net income for the period.
the beginning retained earnings reported on the retained earnings statement.
the amount of the retained earnings reported on the balance sheet.
zero.
Under IFRS
comparative prior-period information is not required, but financial statements must be provided annually.
comparative prior-period information is not required, and financial statements need not be provided annually.
comparative prior-period informaton must be presented, and financial statements must be provided annually.
comparative prior-period information must be presented, but financial statements need not be provided annually.
Multiple Choice Question 48
A worksheet can be thought of as a(n)
part of the journal.
optional device used by accountants.
part of the general ledger.
permanent accounting record.
Multiple Choice Question 166
Income Summary has a credit balance of $17,000 after closing revenues and expenses. The entry to close Income Summary is
debit Income Summary $17,000, credit Retained Earnings $17,000.
credit Income Summary $17,000, debit Retained Earnings $17,000.
credit Income Summary $17,000, debit Dividends $17,000.
debit Income Summary $17,000, credit Dividends $17,000.
Closing entries are journalized and posted
at the end of each interim accounting period.
after the financial statements are prepared.
before the financial statements are prepared.
at management’s discretion.
A post-closing trial balance is prepared
before closing entries have been journalized but after the entries are posted.
after closing entries have been journalized and posted.
after closing entries have been journalized but before the entries are posted.
before closing entries have been journalized and posted.
After closing entries are posted, the balance in the retained earnings account in the ledger will be equal to
the net income for the period.
the beginning retained earnings reported on the retained earnings statement.
the amount of the retained earnings reported on the balance sheet.
zero.
A current asset is
usually found as a separate classification in the income statement.
an asset that a company expects to convert to cash or use up within one year.
the last asset purchased by a business.
an asset which is currently being used to produce a product or service.
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