Accountancy Test Questions with Answers Essay

Accountancy Test Questions with Answers Essay Accountancy Test Questions with Answers Essay 160. At October 1, Arcade Fire Enterprises reported stockholders' equity of $35,000. During October, common stock of $5,000 was issued and the company posted a net loss of $2,000. If stockholders' equity at October 31 totals $35,000, what amount of dividends were paid during the month? âÅ"” 1. a. $0 2. b. $2,000 3. c. $3,000 - Given 4. d. $5,000 143. Black Keys Company began the year with stockholders' equity of $185,000. During the year, the company recorded revenues of $250,000, expenses of $190,000, and paid dividends of $20,000. What was Black Keys’ stockholders' equity at the end of the year? âÅ"â€" 1. a. $185,000. 2. b. $225,000. 3. c. $245,000. - Given 4. d. $265,000. 134. An income statement âÅ"â€" 1. a. summarizes the changes in retained earnings for a specific period of time. 2. b. reports the changes in assets, liabilities, and stockholders` equity over a period of time. 3. c. reports the assets, liabilities, and stockholders` equity at a specific date. 4. d. presents the revenues and expenses for a specific period of time. 151. Teamboo Company’s stockholders' equity at the beginning of August 2013 was $300,000. During the month, the company earned net income of $70,000 and paid dividends of $30,000. At the end of August 2013, what is the amount of stockholders' equity? âÅ"â€" 1. a. $270,000 2. b. $300,000 - Given 3. c. $330,000 4. d. $340,000 135. If the retained earnings account increases from the beginning of the year to the end of the year, then âÅ"â€" 1. a. net income is less than dividends. 2. b. a net loss is less than dividends. - Given 3. c. the company must have sold stock. 4. d. net income is greater than dividends. 154. Stahl Consulting started the year with total assets of $20,000 and total liabilities of $5,000. During the year, the business recorded $16,000 in catering revenues and $10,000 in expenses. Stahl issued stock of $3,000 and paid dividends of $5,000 during the year. The net income reported by Stahl Consulting for the year was: âÅ"â€" 1. a. $1,000. 2. b. $4,000. - Given 3. c. $6,000. 4. d. $9,000. 149. Misra Company compiled the following financial information as of December 31, 2013: Revenues $170,000 Retained earnings (1/1/13) 30,000 Equipment 40,000 Expenses 125,000 Cash 45,000 Dividends 10,000 Supplies 5,000 Accounts payable 20,000 Accounts receivable 35,000 Common stock 40,000 Misra’s assets on December 31, 2013 are âÅ"” 1. a. $90,000. 2. b. $125,000. - Given 3. c. $180,000. 4. d $245,000. 170. The organization(s) primarily responsible for establishing generally accepted accounting principles is(are) the FASB SEC âÅ"â€" 1. a. no no 2. b. yes no - Given 3. c. no yes 4. d. yes yes 136. Mofro’s Computer Repair Shop started the year with total assets of $270,000 and total liabilities of $180,000. During the year, the business recorded $450,000 in computer repair revenues, $270,000 in expenses, and Mofro paid dividends of $45,000. Stockholders' equity at the end of the year was âÅ"â€" 1. a. $180,000. 2. b. $210,000. - Given 3. c. $225,000. 4. d. $270,000. 168. Auditing is âÅ"â€" 1. a. the examination of financial statements by a CPA in order to express an opinion on their fairness. 2. b. a part of accounting that involves only recording of economic events. 3. c. an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems. - Given 4. d. conducted by the Securities and Exchange Commission to ensure that registered financial statements are presented fairly. 157. At October 1, Arcade Fire Enterprises reported stockholders' equity of $35,000. During October, no stock was issued and the company earned net income of $9,000. If stockholders' equity at October 31 totals $39,000, what amount of dividends were paid during the month? âÅ"â€" 1. a. $0 2. b. $4,000 - Given 3. c. $5,000 4. d. $13,000 145. Centro-matic Company began the year with stockholders' equity of $15,000. During the year, Centro-matic issued additional shares of stock in exchange for cash of $21,000, recorded expenses of