107. Given the information below about David Corporation, what was the amount of dividends the company paid in the current period?
a. $140,000.
b. $0.
c. $30,000.
d. $20,000.
108. Liabilities are shown in which of the following statements?
a. Income statement.
b. Statement of cash flows.
c. Balance sheet.
d. Statement of stockholders’ equity.
109. Consider the following account balances of the Shattuck Law Firm at the end of the year:
Accounts Payable$ 4,400
Salaries Expense 12,800
Cash 1,700
Common Stock 2,400
Service Revenue 8,300
Supplies 4,300
Retained Earnings 1,100
Utilities Expense 5,000
How many of these accounts would appear in Shattuck’s year-end income statement?
a. Five.
b. Four.
c. Three.
d. Two.
110. Consider the following account balances of the Shattuck Law Firm at the end of the year:
Accounts Payable$ 4,400
Salaries Expense 12,800
Cash 1,700
Common Stock 2,400
Service Revenue 8,300
Supplies 4,300
Retained Earnings 1,100
Utilities Expense 5,000
How many of these accounts would appear in Shattuck’s year-end balance sheet?
a. Five.
b. Four.
c. Three.
d. Two.
111. If total change in cash = $44,000, net operating cash flows = $22,000, and net investing cash flows = ($13,000); then net financing cash flows =
a. $15,000.
b. $35,000.
c. $25,000.
d. $45,000.
112. For the past five years, Mookie Consulting Services reported the following annual net income and dividend amounts:
YearNet IncomeDividends
1 $22,000 $2,000
2 17,000 2,000
3 9,000 1,000
4 14,000 3,000
5 25,000 4,000
If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company’s Retained Earnings at the beginning of Year 1?
a. $13,000.
b. $25,000.
c. $7,000.
d. $1,000.
113. Which of the following items is reported in the statement of stockholders’ equity?
a. Total assets.
b. Total expenses.
c. Net income.
d. Operating cash flows.
114. Which of the following statements is NOT correct about the financial statements?
a. An income statement reports revenues, expenses, and net income information.
b. The statement of stockholders’ equity presents common stock, dividends, and retained earnings information.
c. A balance sheet reports assets, liabilities, revenues, and expenses.
d. The statement of cash flows shows cash inflows and outflows from operating, financing, and investing activities.
115. The balance sheet depicts which of the following equations?
a. Net income = revenue − expenses.
b. Ending retained earnings = beginning retained earnings + net income − dividends.
c. Assets = liabilities + stockholders’ equity.
d. Net cash flows = total cash inflows − total cash outflows.
116. Which of the following financial statements reports a company’s retained earnings?
a. Income statement.
b. Balance sheet.
c. Statement of cash flows.
d. All of the other answers are correct.
