4. During 2018 Fox Co. collected $250,000 in accountsreceivable, while performing services with invoices totaling$280,000. Also during 2018, Fox paid $120,000 to buy resources,using $100,000 of these resources in their operations. In December2018, Fox declared dividends of $40,000, paying $10,000 of them nowand the rest to be paid in 2019. What is the change in RetainedEarnings that Fox will report for 2018? a. 120,000 b. 180,000 c.90,000 d. 140,000
5. A new company, in its 1st physical count, included $1,000,000more inventory than it actually owned. What is the effect of thiserror on its 2nd Year Net Income (NI) and on its Stockholders'Equity (SE) at the end of its 2nd Year, respectively? (Key forAnswers: O = Overstated, U = Understated, and C = Correct) a. NI=O& SE=O b. NI=U & SE=C c. NI=C & SE=C d. NI=U & SE=Ue. NI=O & SE=C.
6. Which inventory method generally results in the highest cashflows, after taxes? a. Last in first out (LIFO) b. First in firstout (FIFO) c. Weighted-average d. Choice of inventory methods donot effect earnings per share.
7. At year-end, the following information is available from theFox Co. Adjusted Trial Balance (Accounts are in random order, butassume Normal Account Balances): Equipment $200,000 AccumulatedDepreciation $ 100,000 Accounts Payable 80,000 Cost of Goods Sold120,000 Loss on Truck Sale 20,000 Depreciation Expense 40,000Dividends 70,000 Cash 10,000 Salaries Expense 60,000 Sales 650,000Retained Earnings 140,000 Accounts Receivable 120,000 Based on thisinfo, what is Foxâs Net Income for the year? a. 310,000 b. 410,000c. 340,000 d. 430,000
8. For these 4 accounts, which answer would decrease eachaccount: Sales Allowance for Doubtful Accounts Premium on BondPayable Cost of Sales a. Credit Credit Credit Debit b. Debit DebitDebit Credit c. Debit Credit Debit Credit d. Credit Debit DebitDebit e. None of the above answers are completely correct.
4. During 2018 Fox Co. collected $250,000 in accountsreceivable, while performing services with invoices totaling$280,000. Also during 2018, Fox paid $120,000 to buy resources,using $100,000 of these resources in their operations. In December2018, Fox declared dividends of $40,000, paying $10,000 of them nowand the rest to be paid in 2019. What is the change in RetainedEarnings that Fox will report for 2018? a. 120,000 b. 180,000 c.90,000 d. 140,000
5. A new company, in its 1st physical count, included $1,000,000more inventory than it actually owned. What is the effect of thiserror on its 2nd Year Net Income (NI) and on its Stockholders'Equity (SE) at the end of its 2nd Year, respectively? (Key forAnswers: O = Overstated, U = Understated, and C = Correct) a. NI=O& SE=O b. NI=U & SE=C c. NI=C & SE=C d. NI=U & SE=Ue. NI=O & SE=C.
6. Which inventory method generally results in the highest cashflows, after taxes? a. Last in first out (LIFO) b. First in firstout (FIFO) c. Weighted-average d. Choice of inventory methods donot effect earnings per share.
7. At year-end, the following information is available from theFox Co. Adjusted Trial Balance (Accounts are in random order, butassume Normal Account Balances): Equipment $200,000 AccumulatedDepreciation $ 100,000 Accounts Payable 80,000 Cost of Goods Sold120,000 Loss on Truck Sale 20,000 Depreciation Expense 40,000Dividends 70,000 Cash 10,000 Salaries Expense 60,000 Sales 650,000Retained Earnings 140,000 Accounts Receivable 120,000 Based on thisinfo, what is Foxâs Net Income for the year? a. 310,000 b. 410,000c. 340,000 d. 430,000
8. For these 4 accounts, which answer would decrease eachaccount: Sales Allowance for Doubtful Accounts Premium on BondPayable Cost of Sales a. Credit Credit Credit Debit b. Debit DebitDebit Credit c. Debit Credit Debit Credit d. Credit Debit DebitDebit e. None of the above answers are completely correct.
