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Resources owned by the company that will provide a benefit for more than one year

Resources owned by the company that will provide a benefit for more than one year are called:

a. Current assets.

b. Current liabilities.

c. Long-term assets.

d. Revenues.

 

 

115. The following financial information is from Shovels Construction Company:

Accounts Payable

$15,000

Buildings

80,000

Cash

10,500

Accounts Receivable

9,500

Sales Tax Payable

4,500

Retained Earnings

47,500

Supplies

40,000

Notes Payable (due in 18 months)

35,000

Interest Payable

3,000

Common Stock

35,000

What is the amount of current assets, assuming the accounts above reflect normal activity?

a. $20,000.

b. $60,000.

c. $140,000.

d. $175,000.

 

 

116. Consider the following items:

Land

Accounts Receivable

Notes Payable (due in three years)

Accounts Payable

Retained Earnings

Prepaid Rent

Unearned Revenue

Buildings

Notes Payable (due in six months)

Equipment

How many of the items listed above are generally long-term assets?

a. Two.

b. Three.

c. Four.

d. Five.

 

 

117. The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise.

Retained Earnings

$52,000

Supplies

37,000

Equipment

72,000

Accounts Receivable

8,600

Unearned Revenue

6,000

Accounts Payable

15,000

Common Stock

25,000

Notes Payable (due in 18 months)

35,000

Interest Payable

7,000

Cash

22,400

What is the amount of current liabilities?

a. $63,000.

b. $28,000.

c. $45,600.

d. $22,000.

 

 

118. The following table contains financial information for Trumpeter Inc. before closing entries:

Cash

$12,000

Supplies

4,500

Prepaid Rent

2,000

Salary Expense

  4,500

Equipment

65,000

Service Revenue

30,000

Miscellaneous Expenses

20,000

Dividends

  3,000

Accounts Payable

  5,000

Common Stock

68,000

Retained Earnings

  8,000

What is Trumpeter’s net income?

a. $3,500.

b. $2,500.

c. $5,000.

d. $5,500.

 

 

119. The following table contains financial information for Trumpeter Inc. before closing entries:

Cash

$12,000

Supplies

  4,500

Prepaid Rent

2,000

Salaries Expense

4,500

Equipment

65,000

Service Revenue

30,000

Miscellaneous Expenses

20,000

Dividends

  3,000

Accounts Payable

  5,000

Common Stock

68,000

Retained Earnings

8,000

What is the amount of Trumpeter’s total assets?

a. $81,500.

b. $82,500.

c. $68,500.

d. $83,500.

 

 

120. The following table contains financial information for Trumpter’s Inc. before closing entries:

Cash

$12,000

Supplies

  4,500

Prepaid Rent

2,000

Salaries Expense

4,500

Equipment

65,000

Service Revenue

30,000

Miscellaneous Expense

20,000

Dividends

  3,000

Accounts Payable

  5,000

Common Stock

68,000

Retained Earnings

8,000

What is the amount of Trumpter’s total liabilities?

a. $5,000.

b. $78,500.

c. $68,500.

d. $83,500.

 

 

121. The following table contains financial information for Trumpter’s Inc. before closing entries:

Cash

$12,000

Supplies

  4,500

Prepaid Rent

2,000

Salaries Expense

4,500

Equipment

65,000

Service Revenue

30,000

Miscellaneous Expense

20,000

Dividends

  3,000

Accounts Payable

  5,000

Common Stock

68,000

Retained Earnings

8,000

What is the amount of Trumpter’s total stockholders’ equity?

a. $5,000.

b. $78,500.

c. $68,500.

d. $83,500.

 

 

122. Which of the following describes the purpose(s) of closing entries?

a. Adjust the balances of asset and liability accounts for unrecorded activity during the period.

b. Transfer the balances of temporary accounts to common stock.

c. Reduce the balances of the temporary accounts to zero to prepare them for measuring activity in the next period.

d. Both b and c.

 

 

123. Which of the following is a permanent account?

a. Dividends.

b. Service Revenue.

c. Advertising Expense.

d. Retained Earnings.

 

Jan 27 2020 View more View Less

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