1.5 Learning Objective 1-5
1) The ending balance of Retained Earnings is reported on the:
A) Balance Sheet only.
B) Statement of Retained Earnings only.
C) Income Statement.
D) A and B.
2) The ending balance of Cash is reported on the:
A) Balance Sheet only.
B) Statement of Retained Earnings only.
C) Statement of Cash Flows only.
D) A and C.
3) The income statement is used to prepare the:
A) Statement of Retained Earnings only.
B) Statement of Cash Flows only.
C) balance sheet only.
D) Statement of Retained Earnings and Statement of Cash Flows.
4) The Statement of Retained Earnings is used to prepare the:
A) Income Statement.
B) Statement of Assets.
C) Statement of Cash Flows.
D) Balance Sheet.
5) On the Statement of Cash Flows, the ending balance of cash is also found on the:
A) Statement of Retained Earnings.
B) Balance Sheet.
C) Income Statement.
D) Statement of Stockholders' Equity.
6) After preparing the Statement of Retained Earnings, the next statement to prepare is the:
A) Income Statement.
B) Statement of Dividends and Distributions.
C) Statement of Cash Flows.
D) Balance Sheet.
7) After preparing the Balance Sheet, the next statement to prepare is the:
A) Income Statement.
B) Statement of Retained Earnings.
C) Statement of Cash Flows.
D) Statement of Stockholders' Equity.
8) Dividends declared are reported on the:
A) Income Statement.
B) Statement of Retained Earnings.
C) Balance Sheet.
D) Statement of Assets.
9) The net loss for a company is reported on the:
A) Statement of Cash Flows.
B) Statement of Retained Earnings.
C) Income Statement.
D) all of the above.
10) Potter Company reports the following line items:
Long-Term Notes Payable
|
$50,000
|
Accounts Receivable
|
$28,000
|
Accounts Payable
|
$37,000
|
Building
|
$55,000
|
Cash and Cash Equivalents
|
$80,000
|
Salaries Expense
|
$20,500
|
Common Stock
|
$22,000
|
Interest Payable
|
$1,500
|
Land
|
$40,000
|
Short-term Investments
|
$5,000
|
Income Taxes Payable
|
$10,000
|
Equipment
|
$59,500
|
Supplies
|
$5,000
|
Service Revenue
|
$99,000
|
Supplies Expense
|
$18,000
|
Utilities Expense
|
$8,500
|
Income Tax Expense
|
$10,000
|
A) $22,000
B) $42,000
C) $62,500
D) $99,000