ACTG Midterm 1 | 100% Correct Answers
| Verified | Latest 2024 Version
An accrual of utilities expense would produce what effect on the balance sheet? - ✔✔Increase liabilities
and decrease equity
Which of the following items are in the balance sheet? - ✔✔
1. inventory
2. Accounts Receivable
3. Equipment
Marks Inc has $2,600 in equity and $1,650 of assets, what is the firm's liabilities? - ✔✔-950 (Assets =
Liabilities + Equity
1650-2600= -950)
Cash collected on accounts receivable would produce what effect on the balance sheet? - ✔✔Increase
assets and decrease assets
As inventory and PPE assets on the balance sheet are consumed, they are reflected...? - ✔✔as an
expense on the income statement
which financial statement would 'Cost of goods sold' most likely appear on? - ✔✔Income statement
Which financial statement would 'revenue' most likely appear on? - ✔✔Income statement
which financial statement would 'Liabilities' most likely appear on? - ✔✔Balance sheet
which financial statement would 'cash from investing activities' most likely appear on? - ✔✔Statement of
Cash flow
What would be the balance sheet classification for 'Machine'? - ✔✔Long-term Assets
, What would be the balance sheet classification for 'Inventory'? - ✔✔Current Assets
What would be the balance sheet classification for 'Land'? - ✔✔Long-term assets
What would be the balance sheet classification for 'common stock'? - ✔✔Equity
What would be the balance sheet classification for 'Building'? - ✔✔Long-term assets
What would be the balance sheet classification for 'Income taxes payable in 30 days'? - ✔✔Current
Liabilities
What would be the balance sheet classification for 'Utilities Payable' ? - ✔✔Current Liabilities
Compute the missing financial amounts :
Assets = 23,200
Equity = 17,000
Liabilities = ? - ✔✔6,200 (23,200-17,000=6,200)
Compute the missing financial amount:
Assets: 89,000
Liabilities: 71,200
Equity: ? - ✔✔17,800 (89,000-71,200=17,800)
Arrow Inc., has and ROE of 15.45% and Clip Company has an ROE of 18.3%. Which of the following
statements is true? - ✔✔Arrow would likely be able to borrow money at a lower interest rate than Clip
would
Arrow Inc., has a debt to equity ratio of 0.26 and Clip Company has 0.49. Which of the following
statements is true? - ✔✔Arrow would likely be able to borrow money at a lower interest rate than Clip
would
| Verified | Latest 2024 Version
An accrual of utilities expense would produce what effect on the balance sheet? - ✔✔Increase liabilities
and decrease equity
Which of the following items are in the balance sheet? - ✔✔
1. inventory
2. Accounts Receivable
3. Equipment
Marks Inc has $2,600 in equity and $1,650 of assets, what is the firm's liabilities? - ✔✔-950 (Assets =
Liabilities + Equity
1650-2600= -950)
Cash collected on accounts receivable would produce what effect on the balance sheet? - ✔✔Increase
assets and decrease assets
As inventory and PPE assets on the balance sheet are consumed, they are reflected...? - ✔✔as an
expense on the income statement
which financial statement would 'Cost of goods sold' most likely appear on? - ✔✔Income statement
Which financial statement would 'revenue' most likely appear on? - ✔✔Income statement
which financial statement would 'Liabilities' most likely appear on? - ✔✔Balance sheet
which financial statement would 'cash from investing activities' most likely appear on? - ✔✔Statement of
Cash flow
What would be the balance sheet classification for 'Machine'? - ✔✔Long-term Assets
, What would be the balance sheet classification for 'Inventory'? - ✔✔Current Assets
What would be the balance sheet classification for 'Land'? - ✔✔Long-term assets
What would be the balance sheet classification for 'common stock'? - ✔✔Equity
What would be the balance sheet classification for 'Building'? - ✔✔Long-term assets
What would be the balance sheet classification for 'Income taxes payable in 30 days'? - ✔✔Current
Liabilities
What would be the balance sheet classification for 'Utilities Payable' ? - ✔✔Current Liabilities
Compute the missing financial amounts :
Assets = 23,200
Equity = 17,000
Liabilities = ? - ✔✔6,200 (23,200-17,000=6,200)
Compute the missing financial amount:
Assets: 89,000
Liabilities: 71,200
Equity: ? - ✔✔17,800 (89,000-71,200=17,800)
Arrow Inc., has and ROE of 15.45% and Clip Company has an ROE of 18.3%. Which of the following
statements is true? - ✔✔Arrow would likely be able to borrow money at a lower interest rate than Clip
would
Arrow Inc., has a debt to equity ratio of 0.26 and Clip Company has 0.49. Which of the following
statements is true? - ✔✔Arrow would likely be able to borrow money at a lower interest rate than Clip
would
