CH_ACCT201_Reviewquestions1

CH_ACCT201_Reviewquestions1 - Park Company was recently...

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Park & Company was recently formed with a $5,000 investment in the company by stockholders. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies on account, and also purchased $5,000 of equipment by paying $2,000 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are: $7,000. $9,000. $10,000. $11,000. Ztech Corp. installs $20,000 of equipment, paying $5,000 in cash and promising to pay the remaining $15,000 in 90 days. As a result, it will have an increase in assets of $20,000 and an increase in liabilities of $15,000. True False Review of J-Cop's income statement show that in the past three years both sales revenue and net income have been growing. How many of the following statements are False ? * Creditors are likely to conclude that the risk of lending to the company is falling and be willing to accept a lower interest rate. * Investors are likely to conclude that the stock price is likely to rise, making the company more attractive as an investment. * Investors are likely to conclude that the company will be better able to pay dividends in the future, making it more attractive. Zero One Two Three Which of the following describes how assets are listed on the balance sheet ? in alphabetical order in the order they will be used up or turned into cash in order of magnitude, lowest value to highest value from least current to most current The Lion Corp has the following information in regard to its cash account for the month of August. It had a balance of $25,000 on August 1. During August, it had three debit entries totaling $100,000. The balance in the cash account on August 31 was $45,000. What is the total of the credit entries during the month of August? $20,000 $45,000 $80,000
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$120,000 The total value of all debits to a particular account must equal the total value of all credits to that account. True False Contributed capital is an asset True False Jeff"O" corp had the following transactions during the month of September: 1. Stock worth $400,000 was issued for cash 2. Purchased $200,000 of machinary by making a $100,000 down payment and signing a
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This note was uploaded on 10/19/2008 for the course ACCT 201 taught by Professor Shleifer during the Fall '08 term at Clemson.

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CH_ACCT201_Reviewquestions1 - Park Company was recently...

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