ACC 3000 Topic 3 ABC

1. 1“Obligations to pay cash, transfer other assets, or provide services to someone else” – Which ONE of the terms below matches the definition/description just given?

   1. AExpense
   2. BLiability
   3. CDividends
   4. DLoss
   5. EAccumulated depreciation
2. 2The New Company's assets equal $104,000, and its stockholders' equity totals $68,500. What is the amount of its liabilities?

   1. A$35,500
   2. B$172,500
   3. C$104,000
   4. D$48,500
3. 3The liabilities of the Old Company are $46,200, and its owners' equity is $55,800. What is the amount of its assets?

   1. A$66,200
   2. B$55,800
   3. C$30,400
   4. D$102,000
4. 4The Rose Corporation has total assets of $109,000 and total liabilities of $37,500. What is the amount of its owners' equity?

   1. A$109,000
   2. B$37,500
   3. C$71,500
   4. D$146,500
5. 5Using the data below, compute TOTAL CURRENT LIABILITIES.
   
   Cash 100
   
   Wages Payable 160
   
   Accounts Receivable 500
   
   Accounts Payable 600
   
   Land 800
   
   Paid-in Capital 1,000
   
   Retained Earnings 1,640
   
   Inventory 1,800
   
   Bank Loan Payable (due in 9 months) 2,200
   
   Equipment 2,400

   1. A$4,600
   2. B$2,200
   3. C$2,400
   4. D$760
   5. E$2,960
6. 6Thomson Company started business on January 1 of Year 1. On December 31 of Year 1, Thomson had the following account balances:
   
   
   
   Accounts receivable: $145,000
   
   Sales revenues: $991,000
   
   Income taxes payable: $29,000
   
   Loan payable: $60,000
   
   Cost of goods sold: $627,000
   
   Cash: $80,000
   
   Inventory: $33,000
   
   Operating expenses: $235,000
   
   Income tax expense: $30,000
   
   Accounts payable: $60,000
   
   Property, Plant, and Equipment: $166,000
   
   Prepaid Rent: $60,000
   
   Bonds Payable: $150,000
   
   Capital Stock: $86,000
   
   Given these data, what is the total amount of Thomson’s TOTAL LIABILITIES as of December 31 of Year 1?

   1. A$99,000
   2. B$185,000
   3. C$86,000
   4. D$299,000
   5. E$484,000
7. 7On December 31, 20X1, Grantsville Company had the following account balances.
   
   
   
   Accounts receivable........................................................................... $15,000
   
   Sales revenues...................................................................................................... 845,000
   
   Retained earnings (beginning of year, January 1, 20X1).......................... 120,000
   
   Income taxes payable.......................................................................................... 25,000
   
   Loan payable......................................................................................................... 65,000
   
   Cost of goods sold............................................................................................... 650,000
   
   Cash......................................................................................................................... 65,000
   
   Inventory........................................................................................................... 20,000
   
   Common stock...................................................................................................... 41,000
   
   Operating expenses............................................................................................. 196,000
   
   Income tax expense.............................................................................................. 25,000
   
   Unearned revenue................................................................................................. 55,000
   
   Property, plant, and equipment........................................................................ 145,000
   
   Prepaid rent............................................................................................................. 70,000
   
   Bonds payable....................................................................................................... 35,000
   
   
   Given these data, what are Grantsville’s TOTAL ASSETS as of December 31, 20X1?

   1. A$476,000
   2. B$335,000
   3. C$285,000
   4. D$265,000
   5. E$315,000
8. 8Hannah Company had the following account totals as of December 31, 20X2.
   
   
   
   Cost of goods sold $150,000
   
   Accounts receivable 100,000
   
   Rent revenue 10,000
   
   Accounts payable 25,000
   
   Sales 200,000
   
   Inventory 50,000
   
   Bank Loan Payable* 20,000
   
   Cash 18,000
   
   Retained earnings (beginning of year, January 1, 20X2) 80,000
   
   Prepaid insurance (6-month insurance policy) 15,000
   
   Paid-in capital 38,000
   
   Equipment 45,000
   
   Unearned rent revenue (9-month contract) 5,000
   
   
   
   *Of the $20,000 bank loan payable, $15,000 will be repaid in 20X3.
   
   What are Hannah Company’s TOTAL CURRENT LIABILITIES?

   1. A$75,000
   2. B$40,000
   3. C$50,000
   4. D$45,000
   5. E$60,000
9. 9Using the following information, compute total CURRENT LIABILITIES:
   
   
   
   Accrued Income Taxes Payable $9,000
   
   Notes Payable (due in 14 months) 1,100
   
   Paid-in Capital 1,750
   
   Treasury Stock 400
   
   Current Portion of Long-Term Debt 10,000
   
   Unearned Revenue 250
   
   Accounts Payable 700
   
   Retained Earnings 1,000
   
   Additional Paid-in Capital 4,000

   1. A$20,350
   2. B$19,950
   3. C$10,700
   4. D$19,700
   5. E$21,700
10. 10The Barney Corporation started July with assets of $170,000 and liabilities of $90,000. During the month of July, stockholders' equity increased by $24,000 and liabilities decreased by $10,000. What is the amount of total assets at the end of July?

    1. A$160,000
    2. B$124,000
    3. C$136,000
    4. D$156,000
    5. E$184,000

11. 11“Economic resources that are owned or controlled by a company” – Which ONE of the terms below matches the definition/description just given?

    1. AAsset
    2. BGain
    3. CRevenue
    4. DNet income
    5. EEquity
12. 12The New Company's assets equal $124,000, and its stockholders' equity totals $68,500. What is the amount of its liabilities?

    1. A$192,500
    2. B$55,500
    3. C$124,000
    4. D$68,500
13. 13The liabilities of the Old Company are $46,200, and its owners' equity is $35,800. What is the amount of its assets?

    1. A$82,000
    2. B$46,200
    3. C$35,800
    4. D$10,400
14. 14The Rose Corporation has total assets of $94,000 and total liabilities of $37,500. What is the amount of its owners' equity?

    1. A$56,500
    2. B$131,500
    3. C$37,500
    4. D$94,000
15. 15Using the data below, compute TOTAL CURRENT ASSETS.
    
    
    
    Cash 100
    
    Wages Payable 160
    
    Accounts Receivable 500
    
    Accounts Payable 600
    
    Land 800
    
    Paid-in Capital 1,000
    
    Retained Earnings 1,640
    
    Inventory 1,800
    
    Bank Loan Payable (due in 2 years) 2,200
    
    Equipment 2,400

    1. A$2,400
    2. B$4,040
    3. C$1,900
    4. D$2,240
    5. E$3,400
16. 16Thomson Company started business on January 1 of Year 1. On December 31 of Year 1, Thomson had the following account balances:
    
    
    
    Accounts receivable: $145,000
    
    Sales revenues: $991,000
    
    Income taxes payable: $ 29,000
    
    Loan payable: $ 60,000
    
    Cost of goods sold: $627,000
    
    Cash: $ 80,000
    
    Inventory: $ 33,000
    
    Operating expenses: $235,000
    
    Income tax expense: $ 30,000
    
    Accounts payable: $ 60,000
    
    Property, Plant, and Equipment: $166,000
    
    Prepaid Rent: $ 60,000
    
    Bonds Payable: $150,000
    
    Capital Stock: $ 86,000
    
    
    
    
    
    Given these data, what is the total amount of Thomson’s TOTAL ASSETS as of December 31 of Year 1?

    1. A$484,000
    2. B$185,000
    3. C$299,000
    4. D$99,000
    5. E$86,000
17. 17On December 31, 20X1, Grantsville Company had the following account balances.
    
    
    
    Accounts receivable......................................................................... $15,000
    
    Sales revenues.............................................................................................. 845,000
    
    Retained earnings (beginning of year, January 1, 20X1).......................... 120,000
    
    Income taxes payable...................................................................................... 25,000
    
    Loan payable................................................................................................... 45,000
    
    Cost of goods sold.......................................................................................... 650,000
    
    Cash............................................................................................................... 65,000
    
    Inventory.......................................................................................................... 20,000
    
    Common stock................................................................................................. 41,000
    
    Operating expenses......................................................................................... 196,000
    
    Income tax expense.................................................................................. ........ 25,000
    
    Unearned revenue.............................................................................................. 55,000
    
    Property, plant, and equipment.............................................................. .......... 145,000
    
    Prepaid rent....................................................................................................... 50,000
    
    Bonds payable................................................................................................... 35,000
    
    
    
    Given these data, what are Grantsville’s TOTAL ASSETS as of December 31, 20X1?

    1. A$315,000
    2. B$295,000
    3. C$245,000
    4. D$265,000
    5. E$456,000
18. 18Lily Company had the following account totals as of December 31, 20X2.
    
    
    
    Cost of goods sold $150,000
    
    Accounts receivable 100,000
    
    Rent revenue 10,000
    
    Accounts payable 25,000
    
    Sales 200,000
    
    Inventory 50,000
    
    Bank Loan Payable* 20,000
    
    Cash 18,000
    
    Retained earnings (beginning of year, January 1, 20X2) 80,000
    
    Prepaid insurance (6-month insurance policy) 15,000
    
    Paid-in capital 38,000
    
    Equipment 45,000
    
    Unearned rent revenue (9-month contract) 5,000
    
    
    
    *Of the $20,000 bank loan payable, $15,000 will be repaid in 20X3.
    
    
    What are Lily Company’s TOTAL CURRENT ASSETS?

    1. A$193,000
    2. B$231,000
    3. C$206,000
    4. D$168,000
    5. E$183,000
19. 19Using the following information, compute total CURRENT ASSETS:
    
    
    
    Goodwill $ 9,000
    
    Prepaid Expenses 1,100
    
    Paid-in Capital 1,750
    
    Cash 400
    
    Property, Plant, and Equipment 10,000
    
    Short-term Investment Securities 250
    
    Accounts Receivable 700
    
    Retained Earnings 1,000
    
    Inventory 4,000

    1. A$6,450
    2. B$6,350
    3. C$9,200
    4. D$7,450
    5. E$5,350
20. 20The Barney Corporation started July with assets of $150,000 and liabilities of $90,000. During the month of July, stockholders' equity increased by $24,000 and liabilities decreased by $10,000. What is the amount of total assets at the end of July?

    1. A$140,000
    2. B$116,000
    3. C$104,000
    4. D$136,000
    5. E$164,000
21. 21“Amount of assets created through doing business operations” – Which ONE of the terms below matches the definition/description just given?

    1. AExpenses
    2. BOwners’ equity
    3. CCash
    4. DRevenues
    5. EAccounts receivable
22. 22The New Company's assets equal $124,000, and its stockholders' equity totals $48,500. What is the amount of its liabilities?

    1. A$212,500
    2. B$75,500
    3. C$144,000
    4. D$88,500
23. 23The liabilities of the Old Company are $76,200, and its owners' equity is $35,800. What is the amount of its assets?

    1. A$112,000
    2. B$76,200
    3. C$40,400
    4. D$65,800
24. 24The Rose Corporation has total assets of $109,000 and total liabilities of $52,500. What is the amount of its owners' equity?

    1. A$109,000
    2. B$56,500
    3. C$52,500
    4. D$131,500
25. 25The following data relate to Company A.
    
    
    
    Retained earnings 500
    
    Paid-in capital 200
    
    Long-term liabilities 1,050
    
    Current assets 400
    
    Current liabilities 600
    
    
    
    Given these data, compute Company A’s TOTAL LONG-TERM ASSETS.

    1. A$1,650
    2. B$1,950
    3. C$1,250
    4. D$300
    5. E$1,050
26. 26Thomson Company started business on January 1 of Year 1. On December 31 of Year 1, Thomson had the following account balances:
    
    
    
    Accounts receivable: $145,000
    
    Sales revenues: $991,000
    
    Income taxes payable: $29,000
    
    Loan payable: $60,000
    
    Cost of goods sold: $627,000
    
    Cash: $80,000
    
    Inventory: $33,000
    
    Operating expenses: $235,000
    
    Income tax expense: $30,000
    
    Accounts payable: $60,000
    
    Property, Plant, and Equipment: $166,000
    
    Prepaid Rent: $60,000
    
    Bonds Payable: $150,000
    
    Capital Stock: $86,000
    
    
    
    Given these data, what is the total amount of Thomson’s Stockholders’ Equity as of December 31 of Year 1?

    1. A$299,000
    2. B$484,000
    3. C$99,000
    4. D$86,000
    5. E$185,000
27. 27On December 31, 20X1, Grantsville Company had the following account balances.
    
    
    
    Accounts receivable $15,000
    
    Sales revenues 845,000
    
    Retained earnings (beginning of year, January 1, 20X1) 120,000
    
    Income taxes payable 25,000
    
    Loan payable 30,000
    
    Cost of goods sold 650,000
    
    Cash 65,000
    
    Inventory 20,000
    
    Common stock 41,000
    
    Operating expenses 196,000
    
    Income tax expense 25,000
    
    Unearned revenue 55,000
    
    Property, plant, and equipment 150,000
    
    Prepaid rent 35,000
    
    Bonds payable 40,000
    
    
    
    Given these data, what are Grantsville’s TOTAL ASSETS as of December 31, 20X1?

    1. A$255,000
    2. B$235,000
    3. C$305,000
    4. D$285,000
    5. E$446,000
28. 28On December 31, 20X1, Ryan Company had the following account balances.
    
    
    
    Accounts receivable $15,000
    
    Sales revenues 845,000
    
    Gain on sale of equipment 14,000
    
    Retained earnings (beginning of year, January 1, 20X1) 20,000
    
    Accounts payable 25,000
    
    Loan payable 45,000
    
    Cost of goods sold 650,000
    
    Cash 6,000
    
    Inventory 11,000
    
    Common stock 41,000
    
    Operating expenses 210,000
    
    Dividends 34,000
    
    Unearned revenue 5,000
    
    Property, plant, and equipment 45,000
    
    Prepaid rent 50,000
    
    Bonds payable 26,000
    
    
    
    Given these data, what are Ryan’s TOTAL LIABILITIES as of December 31, 20X1?

    1. A$96,000
    2. B$151,000
    3. C$101,000
    4. D$135,000
    5. E$142,000
29. 29Use the following information to compute the CURRENT RATIO (current assets / current liabilities).
    
    
    
    Accounts Payable $ 1,100
    
    Paid-in Capital 1,750
    
    Cash 400
    
    Sales 10,000
    
    Accrued Wages Payable 250
    
    Inventory 4,000

    1. A3.26
    2. B1.65
    3. C4.63
    4. D1.74
    5. E4.00
    6. F3.00
30. 30On January 1, Company D has total assets of $700,000. On January 2, Company D entered into the following two transactions.
    
    
    
    a. Purchased goods for resale. Total cost of this inventory was $130,000; Company D paid $90,000 cash and the remainder was put on the company’s credit accounts with its suppliers.
    
    b. Sold land for cash. The original cost of the land was $45,000. The land was sold for $62,000.
    
    
    
    After these two transactions, compute Company D’s TOTAL ASSETS.

    1. A$757,000
    2. B$695,000
    3. C$797,000
    4. D$712,000
    5. E$837,000

Descripción

Business/Economics Test sobre ACC 3000 Topic 3 ABC, creado por Elijah Yarisantos el 23/01/2020.

Autor

Elijah Yarisantos

Idioma

English

Visitas

7

Etiquetas

business/economics

Valoración

Aún sin valoraciones

Valora este test

Valora este test

Más sobre Current and Non-Current Liabilities