Question : 91.At the end of the current year, the owners’ equity : 1237542

 

 

91.At the end of the current year, the owners’ equity in Barclay Bakery is $246,000. During the year, the assets of the business had increased by $120,000 and the liabilities had increased by $72,000. Owners’ equity at the beginning of the year must have been:   

A.$198,000.

 

B.$174,000.

 

C.$284,000.

 

D.$438,000.

$120,000 – $72,000 = $48,000$246,000 – $48,000 = $198,000

 

 

 

92.At the end of the current year, the owners’ equity in Durante Co. is $360,000. During the year, the assets of the business had increased by $68,000 and the liabilities had increased by $118,000. Owners’ equity at the beginning of the year must have been:   

A.$410,000.

 

B.$310,000.

 

C.$546,000.

 

D.$174,000.

$68,000 – $118,000 = ($50,000)$360,000 – ($50,000) = $410,000

 

 

 

93.During the current year, the assets of Quality Stairs increased by $175,000 and the liabilities decreased by $15,000. If the owners’ equity in the business is $475,000 at the end of the year, the owners’ equity at the beginning of the year must have been:   

A.$335,000.

 

B.$285,000.

 

C.$665,000.

 

D.$615,000.

$175,000 + $15,000 = $190,000$475,000 – $190,000 = $285,000

 

 

 

94.An expense is best defined as:   

A.Any payment of cash for the benefit of the company.

 

B.Past, present, or future payments of cash required to generate revenues.

 

C.Past payments of cash required to generate revenues.

 

D.Future payments of cash required to generate revenues.

 

 

 

 

95.A revenue transaction will result in all of the following except:   

A.An increase in assets.

 

B.An increase in owners’ equity.

 

C.A positive cash flow in either the past, present, or future.

 

D.An increase in liabilities.

 

 

 

 

Astoria Co. had the following transactions during the month of August 2014:* Cash received from bank loans was $20,000.* Dividends of $9,500 were paid to stockholders in cash.* Revenues earned and received in cash amounted to $33,500.* Expenses incurred and paid were $26,000.

 

96.Refer to the information above. What amount of net income will be reported on an income statement for the month of August?   

A.$20,000.

 

B.$7,500.

 

C.$0.

 

D.$33,500.

$33,500 – $26,000 = $7,500

 

 

 

97.Refer to the information above. At the beginning of August, 2014, owners’ equity in Astoria was $160,000. Given the transactions of August, what will be the owners’ equity be at the end of the month?   

A.$167,500.

 

B.$150,500.

 

C.$193,500.

 

D.$158,000.

$160,000 (Beginning Owners’ Equity) + $7,500 (Net income) – $9,500 (Dividends)Ending Owners’ Equity = $158,000

 

 

 

98.Refer to the information above. For the month of August, net cash flows from operating activities for Astoria were:   

A.$33,500.

 

B.$7,500.

 

C.$20,000.

 

D.$26,000.

$33,500 – $26,000 = $7,500

 

 

 

Waldorf Co. had the following transactions during the month of October 2014:* Cash received from bank loans was $60,000.* Dividends of $18,500 were paid to stockholders in cash.* Revenues earned and received in cash amounted to $100,500.* Expenses incurred and paid were $78,000.

 

99.Refer to the information above. What amount of net income will be reported on an income statement for the month of October?   

A.$18,500.

 

B.$22,500.

 

C.$78,000.

 

D.$100,500.

$100,500 – $78,000 = $22,500

 

 

 

100.Refer to the information above. At the beginning of October, owners’ equity in Waldorf was $480,000. Given the transactions of October, 2014, what will be the owners’ equity at the end of the month?   

A.$480,000.

 

B.$484,000.

 

C.$502,500.

 

D.$580,500.

$480,000 (Beginning Owners’ Equity) + $22,500 (Net income) – $18,500 (Dividends)Ending Owners’ Equity = $484,000