Question 1.docx - Question 1 0.15 out of 0.15 points Par for the Course pays $4,500 cash for T-shirts from a supplier This transaction Selected Answer

Question 1.docx - Question 1 0.15 out of 0.15 points Par...

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Question 1 0.15 out of 0.15 points Par for the Course pays $4,500 cash for T-shirts from a supplier. This transaction ______. Selected Answer: is an operating activity Answers: causes an increase in common stock all of these are correct is an operating activity none of these are correct causes an increase in total liabilities Response Feedback: See Module 1 LO 3 and LO 6.3. Operating Activities: involve collecting from customers and paying operating expenses; Investing Activities: involve purchasing/selling long-term assets and investments in marketable securities (investments in stocks and bonds of other companies); and Financing Activities: involve borrowing/repaying creditors and any transactions with the shareholders (stocks and dividends). Question 2 0.15 out of 0.15 points The balance sheet reports the ______. Selected Answer: economic resources, obligations, and net worth at a point in time Answers: cash collected and cash paid during the period revenues minus expenses for the accounting period economic resources, obligations, and net worth at a point in time changes that occurred in shareholders' equity during the accounting period Response Feedback: See Module 1, LO 4.1 and 6.1. The four financial statements, required annually are: Income Statement - reports the results of the company’s operations during the year;
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Statement of Shareholders’ Equity - reports the changes in the owners’ investment in the company (instead of a statement of shareholders’ equity, some companies will include a statement of retained earnings) during the year; Statement of Cash Flows - reports the change in the company’s cash during the year; and Balance Sheet - reports the company’s economic resources (assets), obligations (liabilities), and owners’ equity (shareholders’ equity) at a point in time (the end of the year). Question 3 0.15 out of 0.15 points The income statement reports the ______. Selected Answer: revenues minus expenses for the accounting period Answers: economic resources, obligations, and net worth cash collected and cash paid during the period changes that occurred in shareholders' equity during the accounting period revenues minus expenses for the accounting period Response Feedback: See Module 1, LO 4.1 and 6.1. The four financial statements, required annually are: Income Statement - reports the results of the company’s operations during the year; Statement of Shareholders’ Equity - reports the changes in the owners’ investment in the company (instead of a statement of shareholders’ equity, some companies will include a statement of retained earnings) during the year; Statement of Cash Flows - reports the change in the company’s cash during the year; and Balance Sheet - reports the company’s economic resources (assets), obligations (liabilities), and owners’ equity (shareholders’ equity) at a point in time (the end of the year).
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  • Spring '17
  • Balance Sheet, Generally Accepted Accounting Principles, Doubtful Accounts

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