Final Exam, Part 1 >> Introduction to Financial Accounting
TOTAL POINTS 12
1.A company delivered $10,000 of goods to a customer that agreed to pay cash within 30 days. The goods had cost $8,000 to manufacture.
Which of the following items would be increased by this sales transaction? (check all that apply)
1 point
Current Assets
Cost of Goods Sold
Cash from Operations
Accounts Payable
2.A company took delivery of $50,000 of new inventory and agreed to pay cash to the supplier within 30 days.
Which of the following items would be increased by this inventory purchase transaction? (check all that apply)
1 point
Cash from Operations
Total Stockholders’ Equity
Current Liabilities
Cost of Goods Sold
Inventory
3.A company collected $100,000 cash from a customer who both received and was billed for the goods last quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
1 point
Revenue
Cash
Cash from Operations
Accounts Receivable
Current Assets
4.A company collected $10,000 cash from a customer as a deposit for goods that will be shipped next quarter.
Which of the following items would be increased by this cash collection transaction? (check all that apply)
1 point
Cash
Total Stockholders’ Equity
Advances from Customers
Revenue
Cost of Goods Sold
5.A company received $100,000 cash from issuing 10,000 shares of $4 par value stock.
Which of the following items would be increased by this stock issuance transaction? (check all that apply)
1 point
Revenue
Additional Paid in Capital
Cash from Operations
Total Assets
Total Liabilities
6.A company received $75,000 cash from a bank loan that must be repaid in three years.
Which of the following items would be increased by this specific transaction? (check all that apply)
1 point
Total Liabilities
Cash from Financing
Interest Expense
Interest Payable
Total Assets
7.A company declared $500,000 of dividends that will be paid two months from now.
Which of the following items would be increased by this dividend declaration transaction? (check all that apply)
1 point
Net Income
Retained Earnings
Dividend Expenses
Cash from Financing
Total Liabilities
8.A company paid $50,000 to its insurance company for fire insurance coverage over the next year.
Which of the following items would be increased by this insurance prepayment transaction? (check all that apply)
1 point
Total Stockholders’ Equity
Current Assets
Prepaid Insurance
Unearned Revenue
Insurance Expense
9.At the end of the quarter, a company did an adjusting entry to record the fact that $1,000 of Prepaid Advertising had been used up during the quarter.
Which of the following items would be increased by this advertising adjusting entry? (check all that apply)
1 point
Prepaid Advertising
Total Liabilities
Cost of Goods Sold
Advertising Expense
Cash from Operations
10.A company borrowed $500,000 cash from a bank and used it to purchase $500,000 of new manufacturing equipment.
Which of the following items would be increased by the bank loan and equipment purchase transactions? (check all that apply)
1 point
Cash from Investing
Cash from Financing
Equipment
Depreciation
Total Liabilities
11.At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force.
Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
1 point
Total Assets
Depreciation Expense
Cost of Goods Sold
Retained Earnings
Cash from Operations
12.A company sold a piece of manufacturing equipment for $30,000 cash. The equipment had been listed on the balance sheet at a net book value of $25,000, so the company recorded a gain on sale of equipment of $5,000.
Which of the following items would be increased by this equipment sale transaction? (check all that apply)
1 point
Cash from Financing
Cash from Investing
Cash from Operations
Cost of Goods Sold
Retained Earnings
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