56. The amount of liabilities reported on the end-of-period balance sheet was
A. $750.
B. $10,250.
C. $11,000.
D. $8,750.
57. Which of the following financial statements provides information about a company as of a specific point in time?
A. Income statement
B. Statement of changes in equity
C. Statement of cash flows
D. Balance sheet
58. Which of the following statements is true?
A. Balance sheet accounts are referred to as nominal accounts.
B. Balance sheet accounts are referred to as permanent accounts.
C. Expenses are permanent accounts.
D. All of these statements are true.
59. In which section of a statement of cash flows would the purchase of land for cash be reported?
A. Financing activities.
B. Operating activities.
C. Purchasing activities.
D. Investing activities.
60. Which financial statement matches asset increases from operating a business with asset decreases from operating the business?
A. Balance sheet.
B. Statement of changes in equity.
C. Statement of cash flows.
D. Income statement.
61. Cambridge Company earned $1,600 of cash revenue, paid $900 for cash expenses, and paid a $200 cash dividend to its owners. Which of the following statements is true?
A. The net cash flow from operating activities was $700.
B. The net cash flow from investing activities was an outflow or decrease of $200.
C. The net cash flow from operating activities was $500.
D. Cash flows from financing activities were unchanged.
62. Yu Company provided services to a customer for $8,300 cash. As a result of this event,
A. total assets decreased.
B. total liabilities increased.
C. net income increased.
D. cash flow from financing activities increased.
63. During 2011, Childress Company earned $800 of cash revenue, paid $400 of cash expenses, and paid a $200 cash dividend to its owners. Based on this information alone,
A. net income amounted to $400.
B. total assets increased by $200.
C. cash inflow from operating activities was $400.
D. all of these are correct.
64. Gertrude Company purchased office equipment for cash. The cash flow from this event should be shown on the statement of cash flows as
A. an operating activity that increases cash.
B. a financing activity that decreases cash.
C. an investing activity that decreases cash.
D. an operating activity that decreases cash.
65. Retained Earnings at the beginning and ending of the accounting period were $400 and $700, respectively. If revenues were $1,100 and dividends paid to stockholders were $200, expenses for the period must have been
A. $500.
B. $800.
C. $700.
D. $600.