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:
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.
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
* 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.
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?