Unformatted text preview: on" investment?
Repayment of a loan.
Purchase of an asset.
Securing a loan. Multiple Choice 12. Learning Objective: 0103 Explain
the importance of financial
accounting information for external
parties—primarily investors and
creditors—in terms of the
objectives and the characteristics
of that information. awar d: 20 out of
The night manager of Dix ie Trans portation Serv ic e, who had no ac c ounting bac k ground, prepared the
following balanc e s heet for the c ompany at February 28, 2011. The dollar amounts were tak en direc tly from
the c ompany 's ac c ounting rec ords and are c orrec t. Howev er, the balanc e s heet c ontains a number of
errors in its headings , format, and the c las s ific ation of as s ets , liabilities , and owners ' equity . DIXIE TRANSPORTATION SERVICE
8 P.M. THURSDAY Assets Owners' Equity Capital Stoc k
$ 92,000 Ac c ounts Rec eiv able Retained Earnings 62,000 Notes Pay able Cas h 69,000 Supplies Building 80,000 Land Automobiles 165,000 Ac c ounts Pay able $ 468,000 $ 70,000 288,000 14,000 70,000 26,000 $ 468,000 Prepare a c orrec ted balanc e s heet. Inc lude a proper heading. (Be sure to list the assets and liabilities in
order of their liquidity. Om it the "$" sign in your response.) DIXIE TRANSPORTATION SERVICE
Balanc e Sheet
February 28, 2011 Assets Cash Accounts receivable Building Autom obiles Land Supplies Total As s ets Liabilities...
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This document was uploaded on 03/03/2014 for the course MGMT ACCOU 2300 at Rensselaer Polytechnic Institute.
- Fall '08