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BUS-A200 Practice Exam with
complete solutions latest version
If the beginning and the ending balances in retained earnings are $14,000 and $18,000,
respectively, and dividends during the year are $40,000, then *net income* for the year
is: - CORRECT ANSWER-*A. $44,000*
B. $40,000
C. $4,000
D. Indeterminable from the data given
+ Beg R/E $14,000
+ Net Income $44,000
- Div $40,000
= End R/E $18,000
Which of the following changes describes the *collection of $1,000 from accounts
receivable*? - CORRECT ANSWER-A. Assets and owner's equity increase by$1,000.
B. Assets and owner's equity decrease by$1,000.
C. Assets and liabilities increase by$1,000.
D. Assets and liabilities decrease by $1,000.
*E. No changes in total assets, liabilities, or owner's equity.*
Cash goes up, accounts receivable goes down, no change in total assets
Carla Company reports total assets and total liabilities of $425,000 and $200,000,
respectively, at the conclusion of its first year of business. The company earned
$95,000 during the first year and distributed $50,000 in dividends.
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What was the firm's *contributed capital*? - CORRECT ANSWER-A. $225,000
*B. $180,000*
C. $130,000
D. $65,000
A=L*E
Assets $425,000
=
Liabilities $200,000
+
Equity:
Contributed Capital $180,000
R/E $45,000
The following selected account balances were drawn from the 2007 balance sheet and
income statement of Persimmon Company:
Cash $2,800
Accounts Receivable $750 Accounts Payable $500
Land $600
*Common Stock ???*
Retained Earnings $2,600 Revenues $5,400
Expenses $4,000
Based on the above information, what is the balance of Common Stock for Persimmon
Company? - CORRECT ANSWER-A. $750
B. $1,050
C. $1,550
D. $2,050
*?*
Harrigan and Sons provide legal services. On September 1, 2007, Harrigan contracted
to provide 12 months of legal services to a client. On that date, Harrigan collected a
$36,000 retainer and began providing services.
How much *revenue* would Harrigan report from that client for the year ending
December 31, 2007? - CORRECT ANSWER-A. $36,000
BRAINSCAPE1
BUS-A200 Practice Exam with
complete solutions latest version
If the beginning and the ending balances in retained earnings are $14,000 and $18,000,
respectively, and dividends during the year are $40,000, then *net income* for the year
is: - CORRECT ANSWER-*A. $44,000*
B. $40,000
C. $4,000
D. Indeterminable from the data given
+ Beg R/E $14,000
+ Net Income $44,000
- Div $40,000
= End R/E $18,000
Which of the following changes describes the *collection of $1,000 from accounts
receivable*? - CORRECT ANSWER-A. Assets and owner's equity increase by$1,000.
B. Assets and owner's equity decrease by$1,000.
C. Assets and liabilities increase by$1,000.
D. Assets and liabilities decrease by $1,000.
*E. No changes in total assets, liabilities, or owner's equity.*
Cash goes up, accounts receivable goes down, no change in total assets
Carla Company reports total assets and total liabilities of $425,000 and $200,000,
respectively, at the conclusion of its first year of business. The company earned
$95,000 during the first year and distributed $50,000 in dividends.
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What was the firm's *contributed capital*? - CORRECT ANSWER-A. $225,000
*B. $180,000*
C. $130,000
D. $65,000
A=L*E
Assets $425,000
=
Liabilities $200,000
+
Equity:
Contributed Capital $180,000
R/E $45,000
The following selected account balances were drawn from the 2007 balance sheet and
income statement of Persimmon Company:
Cash $2,800
Accounts Receivable $750 Accounts Payable $500
Land $600
*Common Stock ???*
Retained Earnings $2,600 Revenues $5,400
Expenses $4,000
Based on the above information, what is the balance of Common Stock for Persimmon
Company? - CORRECT ANSWER-A. $750
B. $1,050
C. $1,550
D. $2,050
*?*
Harrigan and Sons provide legal services. On September 1, 2007, Harrigan contracted
to provide 12 months of legal services to a client. On that date, Harrigan collected a
$36,000 retainer and began providing services.
How much *revenue* would Harrigan report from that client for the year ending
December 31, 2007? - CORRECT ANSWER-A. $36,000
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