A100 Exam1 Fall1 2008 version D

A100 Exam1 Fall1 2008 version D - 1 Which of the following...

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1 a Deloitte b PricewaterhouseCoopers c JJ's CPAs e KPMG 2 When an account receivable is collected: a total assets do not change. b retained earnings is increased. c revenue is increased. d expenses are increased. e None of the above. 3 AP Company hires a consultant on May 1 2007 for $72,000, for work to be done over the next three years. AP's annual financial a An asset of $8,000. b An expense of $8,000 and an asset of $56,000. c An expense of $8,000. d An expense of $24,000 and an asset of $32,000. e An expense of $32,000 and an asset of $24,000. 4 Haney Corp. had only the following transactions during its first month in business: Issued $100,000 in common stock, purchased inventory for $20,000 and sold all the inventory for $32,000, and incurred a liability of $12,000 for utility expense which had not been paid by the end of the month. What is Haney's net income for the month? a $0 b $12,000 c $32,000 d $132,000 e None of the above agreed to pay the bank $248,000 on July 1, 2012 in settlement of the debt. 5 a A note payable of $200,000, interest expense of $12,000, and interest payable of $12,000. b A note payable of $200,000, interest expense of $12,000, and interest payable of $48,000. c A note payable of $200,000, interest expense of $6,000, and interest payable of $48,000. d A note payable of $200,000, interest expense of $6,000, and interest payable of $6,000. e A note payable of $200,000, interest expense of $48,000, and interest payable of $48,000. 6 a $6,000 b $0 c $248,000 d $112,000 e $12,000 7 What is the company's net income for the year? a $35,000 b $30,000 c $20,000 d $5,000 e None of the above 8 Unearned revenue represents a: a an asset b a liability c stockholders' equity d an amount that has been earned e None of the above 9 Cash flows from financing activities include all but which of the following? a borrowing from a bank b issuing common stock c repaying long-term liabilities d interest payments e paying dividends 10 The account "retained earnings" shows a the amount earned by a company less its dividends. b the amount that has been paid to a company by its stockholders. c the amount of cash available for use to pay liabilities.
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This note was uploaded on 09/29/2008 for the course BUS-A 100 taught by Professor Tiller during the Spring '08 term at Indiana.

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A100 Exam1 Fall1 2008 version D - 1 Which of the following...

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