Author: Anonymous

Use the following information as of December 31 to determine equity.     Cash $ 57,000 Buildings   175,000 Equipment   206,000 Liabilities   141,000

A piece of equipment with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:

A trial balance prepared before any adjustments have been recorded is:

DJ’s Inc is a wholesaler that sells merchandise in large quantities. Its catalog indicates a list price of $300 per unit on a particular product and a 40% trade discount is offered for quantity purchases of 50 units or more. The cost of shipping the merchandise is $7 per unit under terms FOB shipping point. If a customer purchases 100 units of this product, what is the amount of sales revenue that DJ’s will record from this sale?

Which financial statement reports an organization’s financial position at a single point in time?

Fantasma makes an $18,750, 120-day, 8% cash loan to Keebler Co. on November 1. Fantasma’s end-of-period adjusting entry on December 31 should be:

The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization.

On November 19, Telphony Co. receives a $15,000, 60-day, 8% note from a customer as payment on account. What adjusting entry should be made on the December 31 year-end? (Use 360 days a year.)

A bookkeeper has debited an asset account for $3,500 and credited a liability account for $2,000. Which of the following would be an incorrect way to complete the recording of this transaction: