Question

1. Which of the following is a contra account?

A.

Premium on bonds payable

B.

Unearned revenue

C.

Patents

D.

Accumulated depreciation

2.

For Sandhill Co., the following information is available:

Capitalized leases

$570,000

Copyrights

244,000

Long-term receivables

216,000

In Sandhill’s balance sheet, intangible assets should be reported at

A. $786,000

B. $814,000

C. $216,000

D. $244,000

3.

Presented below are data for Wildhorse Co.

2017

2018

Assets, January 1

$8,855

$9,717

Liabilities, January 1

4,870

?

Stockholders' Equity, Jan. 1

?

?

Dividends

1,611

1,219

Common Stock

1,456

1,304

Stockholders' Equity, Dec. 31

?

?

Net Income

1,910

1,306

Stockholders' Equity at January 1, 2018 is

A. $5,740

B. $3,985

C. $4,284

D. $5,895

4.

Presented below are data for Sheridan Company

2017

2018

Assets, January 1

$6849

?

Liabilities, January 1

?

$4109

Stockholders' Equity, Jan. 1

?

$4127

Dividends

847

972

Common Stock

904

968

Stockholders' Equity, Dec. 31

?

3401

Net Income

1032

?

Net income for 2018 is

A. $182 income

B. $726 income

C. $246 loss

D. $726 loss

5.

During 2017 the Cullumber Company had a net income of $84,200. In addition, selected

accounts showed the following changes:

Accounts Receivable

$3,300 increase

Accounts Payable

1,000 increase

Buildings

4,100 decrease

Depreciation Expense

1,300 increase

Bonds Payable

7,200 increase

What was the amount of cash provided by operating activities?

A. $84,200

B. $83,200

C. $85,500

D. $92,900

6.

Crane Company reports the following information:

Net cash provided by operating activities

341,000

Average current liabilities

146,000

Average long-term liabilities

103,000

Dividends paid

62,000

Capital expenditures

120,000

Payments of debt

34,500

Crane’s free cash flow is

A. $279,000

B. $221,000

C. $124,500

D. $159,000

7. Sunland Company's trial balance reflected the following account balances at December 31,

2017:

Accounts receivable (net)

$39,000

Trading securities

14,000

Accumulated depreciation on equipment and furniture

31,000

Cash

32,000

Inventory

61,500

Equipment

55,000

Patent

7,000

Prepaid expenses

4,400

Land held for future business site

37,500

In Sunland’s December 31, 2017 balance sheet, the current assets total is

A. $243,900

B. $150,900

C. $215,000

D. $225,500

8. In a statement of cash flows, receipts from sales of property, plant, and equipment and other

productive assets should generally be classified as cash inflows from

A.

investing activities

B.

operating activities

C.

financing activities

D.

selling activities

9. Which of the following investments should always be reported as current assets?

A.

Held-to-maturity securities

B.

Trading securities

C.

Available-for-sale securities

D.

Long-term investments

10. New England Co. had net cash provided by operating activities of $351,000; net cash used by

investing activities of $420,000; and cash provided by financing activities of $250,000.

New England's cash balance was $27,000 on January 1.

What was New England's cash balance at the end of the year?

A. $40,000

B. $208,000

C. $248,000

D. $27,000

Answer 1

Ans 1: option d

Reason: contra account is created as credit account for a debit asset account.accumlated depreciation account is created for the depreciable fixed asset.

Ans 2 : d $244000

Reason: only copyright is an intangible asset whereas capitalised lease is a fixed asset and long term receivable is a non current asset.

Ans 3: