Chapter 01 Accounting in Business

161.
Use the following information as of December 31 to determine equity.
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A. $57,000.

B. $141,000.

C. $297,000.

D. $438,000.

E. $579,000.

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Chapter
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162. Determine the net income of a
company for which the following information is available for the month of May.
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A. $190,000.

B. $210,000.

C. $230,000.

D. $400,000.

E. $610,000.

163.
A company acquires
equipment for $75,000 cash. This represents a(n) A. Operating activity.

B. Investing activity.
C. Financing activity. D. Revenue activity. E. Expense activity.

164.
A company borrows
$125,000 from the Eastside Bank and receives the loan proceeds in cash. This
represents a(n):

A. Revenue activity. B. Operating
activity. C. Expense activity.
D. Investing activity.
E. Financing activity.

165.
Flash had cash inflows
from operations $62,500; cash outflows from investing activities of $47,000;
and cash inflows from financing of $25,000. The net change in cash was:

A. $40,500 increase. B.
$40,500 decrease. C. $134,500 decrease. D. $134,000 increase. E. $9,500
increase.

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Chapter
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166.
Flash has beginning
equity of $257,000, net income of $51,000, withdrawals of $40,000 and
investments by owners of $6,000. Its ending equity is:

A. $223,000. B.
$240,000. C. $268,000. D. $274,000. E. $208,000.

167. Rent
expense that is paid with cash appears on which of the following statements?
A. Balance
sheet.
B. Income
statement.
C. Statement
of owner’s equity.
D. Income
statement and statement of cash flows.
E. Statement
of cash flows only.

168.
A company’s balance
sheet shows: cash $22,000, accounts receivable $16,000, office equipment
$50,000, and accounts payable $17,000. What is the amount of owner’s equity? A.
$17,000.

B. $29,000. C. $71,000.
D. $88,000. E. $105,000.

169. A
company reported total equity of $145,000 at the beginning of the year. The
company reported $210,000 in revenues and $165,000 in expenses for the year.
Liabilities at the end of the year totaled $92,000. What are the total assets
of the company at the end of the year?

A. $45,000. B. $92,000. C. $98,000.
D. $210,000. E.
$282,000.

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Chapter
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170.
Flash reported net
income of $17,500 for the past year. At the beginning of the year the company
had $200,000 in assets and $50,000 in liabilities. By the end of the year,
assets had increased to $300,000 and liabilities were $75,000. Calculate its
return on assets:

A.
8.8% B. 7.0% C. 5.8% D. 35.0% E. 23.3%

171.
Quick Computer Service
had revenues of $80,000 and expenses of $50,000 for the year. Its assets at the
beginning of the year were $400,000. At the end of the year assets were worth
$450,000. Calculate its return on assets.

A.
7.1% B. 7.5% C. 6.7% D. 20.0% E. 18.8%

172. Della’s
Donuts had cash inflows from operating activities of $27,000; cash outflows
from investing activities of $22,000, and cash outflows from financing
activities of $12,000. Calculate the net increase or decrease in cash.

A. $61,000 increase. B. $37,000
increase. C. $7,000 decrease. D. $7,000 increase.
E.
$34,000 decrease.

173.
Della’s Donuts owner
made investments of $50,000 and withdrawals of $20,000. The company has
revenues of $83,000 and expenses of $64,000. Calculate its net income.

A. $30,000. B. $83,000.
C. $64,000. D. $19,000. E. $49,000.

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Chapter
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174. Cool
Tours had beginning equity of $72,000; revenues of $90,000, expenses of
$65,000, and withdrawals by owners of $9,000. Calculate the ending equity.

A. $88,000. B. $25,000.
C. $97,000. D. $38,000. E. $47,000.

175.
A company’s balance
sheet shows: cash $24,000, accounts receivable $30,000, equipment $50,000, and
equity $72,000. What is the amount of liabilities?

A.
$104,000. B. $76,000. C. $32,000. D. $68,000. E. $176,000.