Question

1) Brankov Company has current assets of $95,000 and current liabilities of $110,000. The company  decides to issue stock and receives cash of $100,000. After this transaction, the company's current ratio will be: (Round your final answer to two decimal places.)

A) 1.77.                         B) 1.86.                          C) 0.91.                          D) 0.86.

2) Which of the following lists the accounts in order of liquidity?                                                              

1. Furniture, Cash, Accounts Receivable, Inventory
2. Cash, Inventory, Accounts Receivable, Furniture
3. Cash, Accounts Receivable, Inventory, Furniture
4. Furniture, Cash, Inventory, Accounts Receivable

3) If adjusting entries are not prepared, which financial statements are misstated?                                       

1. balance sheet only
2. income statement, balance sheet and statement of retained earnings
3. income statement only
4. statement of retained earnings only

4) The normal balance of the Accounts Receivable account is a _____________because it is a(n) _______

________account.

A) credit; expense                                                B) debit; stockholders' equity

C) credit; liability                                                 D) debit; asset

1

5) The following accounts and balances are taken from Evan Company's adjusted trial balance:                

Accounts Payable	$10,00C
Accounts Receivable	3,000
Accumulated Depreciation	1,400
Depreciation Expense	1,500
Dividends	2,400
Insurance Expense	2,300
Interest Revenue	1,240
Prepaid Insurance	2,320
Retained Earnings	10,500
Salary Expense	24,100
Service Revenue	37,800

In the closing process, which accounts are credited?

1. Depreciation Expense, Insurance Expense, Salary Expense, Prepaid Insurance
2.             Accounts Receivable, Prepaid Insurance, Salary Expense
3. Depreciation Expense, Dividends, Insurance Expense, Salary Expense
4. Interest Revenue, Service Revenue

6) In what order are the financial statements generally prepared?

1. income statement, statement of retained earnings, and balance sheet
2.            balance sheet, income statement, and statement of retained earnings
3. income statement, balance sheet, and statement of retained earnings
4. statement of retained earnings, balance sheet, and income statement

7) The left side of a T-account is always the: A)ecrease side.
	A) credit side. B) debit side.

8) The revenue principle requires that a business record revenue when the business:

1. receives an order from a customer.
2.            receives payment from a customer.
3. delivers goods to or performs services for a customer.
4. prepares the invoice for the customer.

9) Which of the following transactions includes a credit to cash?

1. receipt of cash from a customer when service is provided
2.            the payment of an accounts payable
3. the collection of cash from an accounts receivable
4. the purchase of supplies on account

10) The major types of transactions that affect retained earnings are:

A) revenues and liabilities.                    B) paid-in capital and common stock.

C) revenues, expenses, and dividends.                     D) assets and liabilities.

Answer 1

Question 1:-

Current Assets = $95,000 + $100,000 = $195,000

When stock has been issued for cash, there is an inflow of cash into the company thereby increasing the current assets. Stock would be reported as part of shareholders equity and does not fall into the current liabilities category.

Current Liabilities = $110,000

Current Ratio = $195,000/$110,000

Current Ratio = 1.77 times

Based on the above calculation, the correct answer is Option A - 1.77 times.

Option B, Option C and Option D are all incorrect based on the above calculations.

Kindly request you post the remaining questions separately so that we can answer them as well. All the best and please let me know if you have any questions :)