Question 1 (24 marks; 43 minutes)
For each of the following, choose the letter that corresponds to the
answer on the computer input sheet
Each correct answer is worth 1.5 marks.
Pacific Corporation reported the following amounts at the end of its first year of operations,
December 31, 2010: contributed capital $100,000; sales revenue $380,000; total assets
$300,000; dividends $20,000; and total liabilities $180,000. Its retained earnings at
December 31, 2010 and its total expenses for 2010 would be
At January 1, 2010, Fungo Corporation had assets of $560,000 and liabilities of $360,000.
During the year, assets increased by $50,000 and liabilities decreased by $20,000. What was
the total amount of shareholders' equity at December 31, 2010?
Niko Corporation purchased factory equipment for $42,000 cash. Which of the following
statements regarding this purchase is incorrect
The profit for Niko will be reduced by the factory equipment expense of $42,000.
Total assets on Niko's statement of financial position will not change.
Total liabilities will not change.
Total shareholders' equity on Niko's statement of financial position will not change.