138.The most important information needed to determine if companies can pay their current obligations is the
a.net income for this year.
b.projected net income for next year.
c.relationship between current assets and current liabilities.
d.relationship between short-term and long-term liabilities.
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment210,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
What is the company’s net income for the year ending December 31, 2011?
a.$133,000
b.$42,000
c.$28,000
d.$12,000
140.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment210,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
Multiple Choice 140. (Cont.)
What is the balance that would be reported for stockholders’ equity at December 31, 2011?
a.$102,000
b.$130,000
c.$144,000
d.$158,000
141.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment210,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
What are total current assets at December 31, 2011?
a.$26,000
b.$32,000
c.$36,000
d.$218,000
142.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment190,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Patents20,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
What is the book value of the equipment at December 31, 2011?
a.$218,000
b.$190,000
c.$162,000
d.$150,000
143.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment210,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
Multiple Choice 143. (Cont.)
What are total current liabilities at December 31, 2011?
a.$18,000
b.$70,000
c.$88,000
d.$0
144.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment210,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
What are total long-term liabilities at December 31, 2011?
a.$0
b.$70,000
c.$88,000
d.$90,000
145.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment190,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Patents20,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
What is total liabilities and stockholders’ equity at December 31, 2011?
a.$176,000
b.$190,000
c.$218,000
d.$232,000
146.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment190,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Patent20,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
Multiple Choice 146. (Cont.)
The sub-classifications for assets on the company’s classified balance sheet would include all of the following except:
a.Current Assets.
b.Property, Plant, and Equipment.
c.Intangible Assets.
d.Long-term Assets.
147.The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2011:
Accounts payable$ 18,000
Accounts receivable11,000
Accumulated depreciation – equipment28,000
Advertising expense21,000
Cash15,000
Common stock42,000
Dividends14,000
Depreciation expense12,000
Equipment210,000
Insurance expense3,000
Note payable, due 6/30/1270,000
Prepaid insurance (month policy)6,000
Rent expense17,000
Retained earnings (1/1/11)60,000
Salaries expense32,000
Service revenue133,000
Supplies4,000
Supplies expense6,000
The current assets should be listed on Dinkel’s balance sheet in the following order:
a.cash, accounts receivable, prepaid insurance, equipment.
b.cash, prepaid insurance, supplies, accounts receivable.
c.cash, accounts receivable, prepaid insurance, supplies.
d.equipment, supplies, prepaid insurance, accounts receivable, cash.