Question :
114. Resources owned by the company that will provide a : 1255830
114. Resources owned by the company that will provide a benefit for more than one year are called:
a. Current assets.
b. Current liabilities.
c. Long-term assets.
d. Revenues.
115. The following financial information is from Shovels Construction Company:
Accounts Payable
$15,000
Buildings
80,000
Cash
10,500
Accounts Receivable
9,500
Sales Tax Payable
4,500
Retained Earnings
47,500
Supplies
40,000
Notes Payable (due in 18 months)
35,000
Interest Payable
3,000
Common Stock
35,000
What is the amount of current assets, assuming the accounts above reflect normal activity?
a. $20,000.
b. $60,000.
c. $140,000.
d. $175,000.
116. Consider the following items:
Land
Accounts Receivable
Notes Payable (due in three years)
Accounts Payable
Retained Earnings
Prepaid Rent
Unearned Revenue
Buildings
Notes Payable (due in six months)
Equipment
How many of the items listed above are generally long-term assets?
a. Two.
b. Three.
c. Four.
d. Five.
117. The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise.
Retained Earnings
$52,000
Supplies
37,000
Equipment
72,000
Accounts Receivable
8,600
Unearned Revenue
6,000
Accounts Payable
15,000
Common Stock
25,000
Notes Payable (due in 18 months)
35,000
Interest Payable
7,000
Cash
22,400
What is the amount of current liabilities?
a. $63,000.
b. $28,000.
c. $45,600.
d. $22,000.
118. The following table contains financial information for Trumpeter Inc. before closing entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salary Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expenses
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is Trumpeter’s net income?
a. $3,500.
b. $2,500.
c. $5,000.
d. $5,500.
119. The following table contains financial information for Trumpeter Inc. before closing entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salaries Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expenses
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is the amount of Trumpeter’s total assets?
a. $81,500.
b. $82,500.
c. $68,500.
d. $83,500.
120. The following table contains financial information for Trumpter’s Inc. before closing entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salaries Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expense
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is the amount of Trumpter’s total liabilities?
a. $5,000.
b. $78,500.
c. $68,500.
d. $83,500.
121. The following table contains financial information for Trumpter’s Inc. before closing entries:
Cash
$12,000
Supplies
4,500
Prepaid Rent
2,000
Salaries Expense
4,500
Equipment
65,000
Service Revenue
30,000
Miscellaneous Expense
20,000
Dividends
3,000
Accounts Payable
5,000
Common Stock
68,000
Retained Earnings
8,000
What is the amount of Trumpter’s total stockholders’ equity?
a. $5,000.
b. $78,500.
c. $68,500.
d. $83,500.
122. Which of the following describes the purpose(s) of closing entries?
a. Adjust the balances of asset and liability accounts for unrecorded activity during the period.
b. Transfer the balances of temporary accounts to common stock.
c. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.
d. Both b and c.
123. Which of the following is a permanent account?
a. Dividends.
b. Service Revenue.
c. Advertising Expense.
d. Retained Earnings.
