ACC 200 EXAM 1 MOD ¾ REVIEW QUESTIONS
WITH VERIFIED SOLUTIONS
The statement of changes in stockholders' equity presents
an explanation of the changes in the beginning and ending balances of stockholders' equity.
Common Stock and Retained Earnings
The Statement of Changes in Stockholders' Equity shows changes in which of the following
accounts?
Paid a $100 cash dividend to the owners
Which of the following transactions would be reported on the Statement of Changes in
Stockholders' Equity?
$275,000
At the beginning of Year 2, Jones Company had a balance in common stock of $200,000 and a
balance of retained earnings of $5,000. During Year 2, the following transactions occurred:
Issued common stock for $50,000
Earned net income of $30,000
Paid dividends of $10,000
Issued a note payable for $20,000
Based on the information provided, what is the total stockholders' equity on December 31, Year
2?
False
The Statement of Changes in Stockholders' Equity is used to inform the creditors how their stake
in the company changed over the period. This statement is:
True
The Statement of Changes in Stockholders' Equity is measured for a period of time such as a
year. This statement is:
Cash flow from operating activities
Which of the following is normally shown first on the statement of cash flows?
$5,000 net cash inflow.
The following information was drawn from Gore, Incorporated's statement of cash flows.
(1) $2,000 net cash outflow from investing activities.
(2) $3,000 net cash inflow from financing activities.
(3) $6,000 net increase in the cash balance.
, Based on this information, the amount of cash flow from operating activities appearing on the
statement of cash flows must be a(n):
The statement of cash flows presents
information in three categories including operating, investing, and financial activities
Paying cash dividends
Which of the following is a financing activity?
$4,000 outflow
Kilgore Company experienced the following events during its first accounting period.
(1) Issued common stock for $5,000 cash.
(2) Earned $3,000 of cash revenue.
(3) Paid a $4,000 cash to purchase land.
(4) Paid cash dividends amounting to $400.
(5) Paid $2,200 of cash expenses.
Based on this information, the amount of cash flow from investing activities appearing on the
statement of cash flows is
The net cash inflow from operating activities was $5,000.
Chester Company earned $12,500 of cash revenue, paid $7,500 for cash expenses, and paid a
$200 cash dividend to its owners. Which of the following statements is true?
Income Statement and Statement of Changes in Stockholders' Equity
Net income appears on which of the following financial statements?
Balance Sheet and Statement of Cash Flows
Ending cash balance is shown on which of the following financial statements?
a, b, c, f, g, h, k
Which of the following are shown on the Balance Sheet?
a Total assets
b Land
c Common Stock
d Net Change in Cash
e Revenue
f Notes Payable
g Stockholders' Equity
h Total Liabilities and Stockholders' Equity
i Expenses
j Net Income
k Ending cash balance
WITH VERIFIED SOLUTIONS
The statement of changes in stockholders' equity presents
an explanation of the changes in the beginning and ending balances of stockholders' equity.
Common Stock and Retained Earnings
The Statement of Changes in Stockholders' Equity shows changes in which of the following
accounts?
Paid a $100 cash dividend to the owners
Which of the following transactions would be reported on the Statement of Changes in
Stockholders' Equity?
$275,000
At the beginning of Year 2, Jones Company had a balance in common stock of $200,000 and a
balance of retained earnings of $5,000. During Year 2, the following transactions occurred:
Issued common stock for $50,000
Earned net income of $30,000
Paid dividends of $10,000
Issued a note payable for $20,000
Based on the information provided, what is the total stockholders' equity on December 31, Year
2?
False
The Statement of Changes in Stockholders' Equity is used to inform the creditors how their stake
in the company changed over the period. This statement is:
True
The Statement of Changes in Stockholders' Equity is measured for a period of time such as a
year. This statement is:
Cash flow from operating activities
Which of the following is normally shown first on the statement of cash flows?
$5,000 net cash inflow.
The following information was drawn from Gore, Incorporated's statement of cash flows.
(1) $2,000 net cash outflow from investing activities.
(2) $3,000 net cash inflow from financing activities.
(3) $6,000 net increase in the cash balance.
, Based on this information, the amount of cash flow from operating activities appearing on the
statement of cash flows must be a(n):
The statement of cash flows presents
information in three categories including operating, investing, and financial activities
Paying cash dividends
Which of the following is a financing activity?
$4,000 outflow
Kilgore Company experienced the following events during its first accounting period.
(1) Issued common stock for $5,000 cash.
(2) Earned $3,000 of cash revenue.
(3) Paid a $4,000 cash to purchase land.
(4) Paid cash dividends amounting to $400.
(5) Paid $2,200 of cash expenses.
Based on this information, the amount of cash flow from investing activities appearing on the
statement of cash flows is
The net cash inflow from operating activities was $5,000.
Chester Company earned $12,500 of cash revenue, paid $7,500 for cash expenses, and paid a
$200 cash dividend to its owners. Which of the following statements is true?
Income Statement and Statement of Changes in Stockholders' Equity
Net income appears on which of the following financial statements?
Balance Sheet and Statement of Cash Flows
Ending cash balance is shown on which of the following financial statements?
a, b, c, f, g, h, k
Which of the following are shown on the Balance Sheet?
a Total assets
b Land
c Common Stock
d Net Change in Cash
e Revenue
f Notes Payable
g Stockholders' Equity
h Total Liabilities and Stockholders' Equity
i Expenses
j Net Income
k Ending cash balance
