151.As of December 31, 2014, Sievers Company has assets of ?90,000 and equity of ?40,000. What are the liabilities for Sievers Company as of December 31, 2014?
a. ?50,000.
b. ?20,000.
c. ?30,000.
d. ?40,000.
152.Which of the following events is
not
a business transaction?
a. Issuance of shares in exchange for cash
b. Hired employees
c. Incurred utility expenses for the month
d. Earned revenue for services provided
153.Net income results when
a. Assets > Liabilities.
b. Revenues = Expenses.
c. Revenues > Expenses.
d. Revenues
154.Retained earnings at the end of the period is equal to
a. retained earnings at the beginning of the period plus net income minus liabilities.
b. retained earnings at the beginning of the period plus net income minus dividends.
c. net income.
d. assets plus liabilities.
155.A statement of financial position shows
a. revenues, liabilities, and equity.
b. expenses, dividends and equity.
c. revenues, expenses, and dividends.
d. assets, liabilities, and equity.
156.An income statement
a. summarizes the changes in equity for a specific period of time.
b. reports the changes in assets, liabilities, and equity over a period of time.
c. reports the assets, liabilities, and equity at a specific date.
d. presents the revenues and expenses for a specific period of time.
157.If the retained earnings account increases from the beginning of the year to the end of the year, then
a. net income is less than dividends.
b. net loss is less than dividends.
c. the company must have sold shares.
d. net income is greater than dividends.
Use the following information for questions 158–160.
Carla’s Computer Repair Shop started the year with total assets of $540,000 and total liabilities of $360,000. During the year, the business recorded $900,000 in computer repair revenues, $510,000 in expenses, and the company paid dividends of $90,000.
158.Equity at the end of the year was
a. $480,000.
b. $450,000.
c. $570,000.
d. $390,000.
159.The net income reported by Carla's Computer Repair Shop for the year was
a. $300,000.
b. $390,000.
c. $180,000.
d. $810,000.
160.Total equity changed by what amount from the beginning of the year to the end of the year?
a. $90,000.
b. $390,000.
c. $180,000.
d. $300,000.