69.George Company was started on January 1, 2013, when it acquired $8,000 cash by issuing common stock. During 2013, the company earned cash revenues of $3,500, paid cash expenses of $2,750, and paid a cash dividend of $300. Based on this information,
A. The December 31, 2013 balance sheet would show total equity of $11,500.
B. The 2013 income statement would show net income of $450.
C. The 2013 statement of cash flows would show net cash inflow from operating activities of $750.
D. The 2013 statement of cash flows would show a net cash flow from financing activities of $8,000.
70.Richardson Company paid $850 cash for rent expense. As a result of this business event,
A. Total assets decreased.
B. Liabilities decreased.
C. The net cash flow from operating activities decreased.
D. Both A and C are correct.
71.Mineola Company paid $30,000 cash to purchase land. As a result of this business event,
A. Total equity was not affected.
B. The net cash flow from investing activities decreased.
C. Total assets were not affected.
D. All of the above are correct.
La Paz Company engaged in the following transactions during 2012, its first year in operation: (Assume all transactions are cash transactions)
1. Acquired $3,000 cash from issuing common stock.
2. Borrowed $2,200 from a bank.
3. Earned $3,100 of revenues.
4. Incurred $2,400 in expenses.
5. Paid dividends of $400.
La Paz Company engaged in the following transactions during 2013:
1. Acquired an additional $500 cash from the issue of common stock.
2. Repaid $1,300 of its debt to the bank.
3. Earned revenues, $4,500.
4. Incurred expenses of $2,750.
5. Paid dividends of $640.
72.The net cash flow from financing activities on La Paz's 2013 statement of cash flows was
A. $1,440 inflow
B. $1,440 outflow
C. $500 inflow
D. $140 outflow
73.The amount of total assets on La Paz's 2012 balance sheet was
A. $6,000.
B. $5,500.
C. $800.
D. $3,800.
74.The amount of retained earnings on La Paz's 2012 balance sheet was
A. $3,100.
B. $2,700.
C. $300.
D. $700.
75.The amount of liabilities on La Paz's 2013 balance sheet was
A. $900.
B. $500.
C. ($1,300).
D. $240.
76.As of December 31, 2012, Montross Company had $400 cash. During 2013, Montross earned $1,200 of cash revenue and paid $800 of cash expenses. The amount of cash shown on the 2013 balance sheet would be
A. $300.
B. $800.
C. $1,100.
D. $2,400.
77.Expenses are shown on the
A. balance sheet.
B. income statement.
C. statement of changes in stockholders' equity.
D. both b and c.
78.Dividends paid by a company are shown on the
A. income statement.
B. statement of changes in stockholders' equity.
C. statement of cash flows.
D. both b and c.