Question

Reading Business Financial Information

1-Match the following line items to their correct financial statement.

Review Later

1-Share capital

2-Retained earnings

3-Rent expense

4-Sale of property, plant and equipment

2-Match the following definitions to the appropriate terms.

1-Future obligations that a company has agreed to

2-Events that may or may not happen, depending on certain circumstances

3-The total number of shares a company can sell

4-Items of value, which have no physical substance, that are used to generate revenues

A-Intangible assets

B-Commitments

C-Contingencies

D-Authorized shares

3-If a company issues 60,000 shares at $0.25 each but the shares have a par value of $0.20 each, what is the resulting contributed surplus?

Review Later

1-15,000

2-($3,000)

3-$3,000

4-$12,000

4-What line item is not found in the statement of shareholders’ equity?

Review Later

1-Debt issued or repurchased

2-Dividends paid

3-Shares issued or repurchased

4-Changes in retained earnings

Answer 1