Accounting Financial Statement Questions:
| Q1. James Corporation had income of $100,000, expenses of $65,000 and a profit of $35,000 in its fiscal year ending December 2011. In which of James Corporation’s financial statements would a potential investor find this information? | |
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a. Statement of incorporation |
| Q2. For the fiscal year ending in 2011, what was the gross profit for Patti’s Prunes, Inc.? | |
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a. $195 |
| Q3. If Gill’s Grapes had sales of $525,000 in the fiscal year ending in 2010 and paid $225,000 for the apples, $30,000 in rent, $52,000 for administrative salaries, $55,000 for production help, and $12,000 for utilities and supplies, how much was the company’s gross profit? | |
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a. $300,000 |
| Q4. If Patti runs the business and draws a salary of $65,000, in which category would that expense be included? | |
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a. Cost of goods sold |
| Q5. Gill’s Grapes had after-tax earnings in 2011 of $280,000. The company had 225,000 shares of stock outstanding. What was its EPS? | |
|
a. $1.38 |
| Q6. The Balance Sheet for Dave’s Apples shows $1,489,000 for assets and $625,000 for liabilities. The owners’ equity must be | |
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a. $2,300,700 |
| Q7. Why are marketable securities listed after cash under Current Assets on the Patti’s Prunes Balance Sheet? | |
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a. Because current assets are listed in alphabetical order |
| Q8. Bill Poole has a hot dog wagon that he sets up on weekends during ball games and county fairs. He just paid $1,200 for hotdogs, buns and mustard, 4200 for advertising handouts, and $4,100 for a wagon. What is the value of Bill’s inventory? | |
|
a. $200 |
| Q9. Alice Wexner started a printing business five years ago and bought a printing press for $100,000. If she assumes it will have no residual value and she depreciates it straight line with a useful life of 10 years, what is the value of her net plant and equipment today? | |
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a. $100,000 |
| Q10. If a company’s fiscal year ends between its paydays (which are at the end of each pay period), the Balance Sheet will show a liability for the wages not paid. This would be called | |
|
a. Accounts Payable |
| Q11. The Addison Corporation has total assets of $2,685,000. It issued 4 million shares of common stock which sold at par value of 20 cents per share. Its Retained Earnings are $958,000. What are its liabilities? |
|
a. $927,000 |
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