Award: 1.00 point
109.
Award: 1.00 point
Expenses are shown on the:
income statement
balance sheet
statement of changes in stockholders' equity
the income statement and statement of changes in stockholders' equity
Expenses and revenues are reported on the income statement. Only permanent accounts are shown on the balance sheet. Net income is shown on the
statement of stockholders' equity, but expenses are not.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Prepare an income statement, a
statement of changes in stockholders equity, and a balance sheet.
At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2, the company earned revenue of $500,
incurred expenses of $200, and paid dividends of $50. All transactions were cash transactions
The amount of net income reported on X Company's December 31, Year 2 income statement would be
$500
$300
$250
None of these answers are correct.
Revenue − Expenses = Net Income
Revenue of $500 − Expenses of $200 = $300 Net Income
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Prepare an income statement, a
statement of changes in stockholders equity, and a balance sheet.
At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2, the company earned revenue of $500,
incurred expenses of $200, and paid dividends of $50. All transactions were cash transactions
The amount of retained earnings reported on X Company's December 31, Year 2 balance sheet would be
$100
$250
$350
None of these answers are correct.
Beginning Retained Earnings + Net Income − Dividends = Ending Retained Earnings
Beginning Retained Earnings of $100 + Net Income of $300 − Dividends of $50 = $350 Ending Retained Earnings
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Prepare an income statement, a
statement of changes in stockholders equity, and a balance sheet.
110.
Award: 1.00 point
111.
Award: 1.00 point
At the beginning of Year 2, X Company had assets of $300, liabilities of $150, and common stock of $50. During Year 2, the company earned revenue of $500,
incurred expenses of $200, and paid dividends of $50. All transactions were cash transactions
The amount of total assets reported on X Company's December 31, Year 2 balance sheet would be
$550
$250
$300
None of these answers are correct.
Total assets = Beginning assets of $300 + Cash revenue of $500 − Cash expenses of $200 − cash dividends paid of $50 = $550
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-07 Prepare an income statement, a
statement of changes in stockholders equity, and a balance sheet.
Dividends paid by a company are shown on the:
Income statement
Statement of changes in stockholders' equity
Statement of cash flows
Statement of changes in stockholders' equity and statement of cash flows
Although the dividends account is a temporary account, dividends are not included on the income statement. They are, however, reported as a deduction from
retained earnings on the statement of changes in stockholders' equity and as a cash outflow for financing activities on the statement of cash flows.
References
Multiple Choice Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Difficulty: 1 Easy Learning Objective: 01-08
Prepare a statement of cash
flows.
112.
Award: 1.00 point
113.
Award: 1.00 point
114.
Award: 1.00 point
Liabilities are shown on the:
Income statement
Balance sheet
Statement of cash flows
Statement of changes in stockholders' equity
Liabilities is an element on the balance sheet. As such, liabilities do not appear on the income statement, statement of cash flows, or the statement of changes
in stockholders' equity.
References
Multiple Choice Difficulty: 1 Easy Learning Objective: 01-07 Prepare an income statement, a
statement of changes in stockholders equity, and a balance sheet.
Which of the following would appear in the investing activities section of the statement of cash flows?
Cash outflow for the purchase of supplies
Cash inflow from interest revenue
Cash inflow from issuance of common stock
Cash outflow for the purchase of land