{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

First Section Practice Problems 2

First Section Practice Problems 2 - P ractice Problems 1...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Practice Problems 1. Supplies inventory had a $15,000 balance at the beginning of September 2010 and had a balance of $25,000 at the end of September. There was $200,000 of supplies purchased during September. What was supplies expense during the month of September? a. $190,000 b. $15,000 c. $25,000 d. $200,000 2. Which of the following transactions would not have an impact on assets? a. Wages being incurred but not yet paid. b. Wages being incurred and paid. c. Purchase of equipment on credit. d. Payment of a dividend that was declared earlier in the month. 3. WTS Inc. purchases a piece of equipment on January 1 , 2010 that cost $210,000 with an estimated useful life of 5 years and a residual value of $10,000. What is the book value of the equipment on December 31, 2010? a. $210,000 b. $10,000 c. $0 d. $170,000 4. Mackenzie Inc.’s inventory balance on January 1 st was $100,000 and $225,000 on December 31 st . Would this show up as a reduction or increase to net income when calculating cash flow from operations?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
5. Whitfield Inc. borrows money from a bank. This shows up as what type of activity on the statement of cash flows? a. Net income b. A financing activity
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}