Question :
11. Which financial statement would you analyze to determine its operating : 1224798
11. Which financial statement would you analyze to determine its operating performance for the past year?
A. Balance sheet
B. Statement of retained earnings
C. Income statement
D. Statement of cash flows
12. Doughtry’s Pet Shop reported a net loss of $1,500,000 and total expenses of $2,900,000. How much were the total sales?
A. $4,400,000
B. $1,400,000
C. $2,900,000
D. $1,500,000
13. The income statement shows:
A. how much profit the company has earned since it began operations.
B. net income equal to the amount of cash on the balance sheet.
C. a summary of the results of operations for a period of time.
D. the liquidity of the company on an annual basis
14. Expenses can be matched against revenues:
A. if the earnings process is not complete.
B. when cash is collected from the sale of products.
C. in the same period as the revenue that it helped to generate.
D. when payment is made for costs related to revenue.
15. What does the phrase, “Revenue is recognized when earned” mean?
A. Revenue is recorded in the accounting records when the goods are received from a supplier, and reported on the income statement when sold to the customer.
B. Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer.
C. Revenue is recorded in the accounting records when the goods are sold to a customer, and reported on the income statement when the cash payment is received from the customer.
D. Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.
16. “Matching principle” is best described as:
A. the principle that a revenue should be recorded when a resource has been earned.
B. an increase in resources resulting from the sale of goods or the provision of services.
C. the principle that expenses should be recorded in the period resources are used to generate revenues.
D. an increase in the financing activities.
17. Monaco Lawn Service Company used $250 of fuel to mow customer lawns in June. The fuel was purchased on account and due in July. Fuel Expense should be recorded in:
A. July.
B. June.
C. August.
D. April.
18. Monaco Lawn Service Company creates revenue each time:
A. it is scheduled for service.
B. amount is paid in full.
C. a lawn is mowed.
D. money is received in advance.
19. IPOD CORPORATION
IPOD Corporations’ end-of-year Balance Sheet consisted of the following amounts.
Cash$ 180,000Accounts receivable$700,000
Property, plant & equipment950,000Long-term debt600,000
Capital stock1,000,000Accounts payable350,000
Retained earnings?Inventory540,000
Refer to the information provided above for IPOD Corporation.What amount should IPOD report on its balance sheet for total assets?
A. $1,420,000
B. $1,830,000
C. $2,370,000
D. $2,190,000
20. IPOD CORPORATION
IPOD Corporations’ end-of-year Balance Sheet consisted of the following amounts.
Cash$ 180,000Accounts receivable$700,000
Property, plant & equipment950,000Long-term debt600,000
Capital stock1,000,000Accounts payable350,000
Retained earnings?Inventory540,000
Refer to the information provided above for IPOD Corporation. What is IPOD’s retained earnings balance at the end of the current year?
A. $ 420,000
B. $1,420,000
C. $1,950,000
D. $2,370,000
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