ACCT-1004S WEEK 6 EXAM QUESTIONS AND ANSWERS ..100%

net income accounting methos reporting period balance sheet $9,000 net income $4,000 revenue $1,000 net loss $2,000 expenses $10,000 paid in dividends to shareholders $55,000 paid for monthly employee wages $25,000 received from a bank loan $98,000 received for selling processing equipment gross profit cost of goods sold total expenses net income beginning balance dividends net income ending balance net income revenues assets expenses balance sheet income statement unqualifi ed disclaime r qualified adverse QUESTION 9 retained earnings assets liabilities capital stock operati ng investin g financin g sales solven cy liquidit y land accounts receivable cash retained earnings financing vending operating servicing of loans investing liabilities revenue assets stockholders' equity The investors can determine whether A&E raises most of its available cash by borrowing from creditors. The investors can determine whether A&E uses available cash to replace existing facilities and equipment. The investors can determine whether A&E generates net cash inflows from selling its software products. The investors can determine whether A&E repays debts and pays dividends with cash on a regular basis. total assets total liabilities capital stock retained earnings Independent auditor’s report Appendix Notes to the financial statements Management discussion and analysis repaying loans to creditors buying property and equipment paying salaries and taxes issuing capital stock Does the company have enough earnings to pay dividends? Does the company’s cash flow support its operating activities? What are the company’s long-term assets and liabilities? What was the most recent account balance for the company? income statement balance sheet statement of cash flows statement of retained earnings statement of cash flows statement of retained earnings balance statement income statement assets ending retained earnings net income cash liabilities capital stock net income stockholders' equity assets vendors investors custome rs employe es balance sheet income statement statement of cash flows statement of retained earnings evaluate the firm’s potential solvency for the purpose of obtaining loans identify the firm’s assets and liabilities at the end of the accounting period understand the components and distribution of stockholders’ equity determine the firm’s net income or net losses over a specific period of time dividends accounts receivables net income asset distributions increase employee wages cover monthly expenses pay dividends to shareholders purchase additional assets QUESTION 30 expenses revenues assets