1-Chapter 1 Review Questions - BB

1-Chapter 1 Review Questions - BB - CHAPTER 1 Review...

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CHAPTER 1 Review Questions The following information pertains to the next four questions . At the beginning of 2010, X Company had assets of $300, liabilities of $150, and common stock of $50. During 2010 the company earned revenue of $400, incurred expenses of $250, and paid dividends of $100. All transactions were cash transactions. 1. What is the amount of retained earnings at the beginning of 2010? a. $ 50. b. $100. c. $150. d. none of the above. 2. The amount of net income reported on the 2010 income statement would be 3. The amount of retained earnings reported on the December 31, 2010 balance sheet would be 4. The amount of total assets reported on the December 31, 2010 balance sheet would be 5. Z Company borrowed $500 cash from the National Bank. As a result of this transaction, Z Company’s a. assets would increase by $500. b. liabilities would decrease by $500. c. equity would increase by $500. d. revenue would decrease by $500.
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