You are watching: When expenses exceed revenues, which of the following is true?
Which of the following is not among the three creates of business organization?a. Corporationsb. Partnershipsc. Proprietorshipsd. Investors
Jack and Jill develop a partnership. Jack runs the organization in New York, while Jill vacations in Hawaii. During the time Jill is amethod from the company, Jack rises the debts of the business by $20,000. Which of the complying with statements is true about this debt?a. Only Jack is personally liable for the debt, given that he has actually been the regulating partner throughout that time.b. Only Jill is personally liable for the debt of the business, given that Jack has been working and she has not.c. Both Jack and Jill are personally liable for the organization debt.d. Neither Jack nor Jill is personally liable for the service debt, because the partnership is a separate legal entity.
Which of the following would certainly not be thought about an interior user of accounting information for the Xanadu Company?a. President of the companyb. Production managerc. Merchandise inventory clerkd. President of the employees" labor union
Which of the complying with exterior groups uses accountancy information to identify whether the company can pay its obligations?a. Investors in prevalent stockb. Marketing managersc. Creditorsd. Chief Financial Officer
The licapability developed by a organization when it purchases coffee beans and coffee cups on crmodify from suppliers is termed a(n)a. account payable.b. account receivable.c. revenue.d. expense.
82. Which of the adhering to tasks entails collecting the essential funds to assistance the business?a. Operatingb. Investingc. Financingd. Delivering
Which tasks involve obtaining the resources to run the business?a. Deliveringb. Financingc. Investingd. Operating
Jackboy Company type of videotaped the complying with cash transactions for the year:Phelp $135,000 for salaries.Passist $60,000 to purchase office tools.Paid $15,000 for utilities.Paid $6,000 in dividends.Collected $275,000 from customers.What was Jackson"s net cash offered by operating activities?a. $125,000b. $65,000c. $140,000d. $119,000
When expenses exceed profits, which of the following is true?a. a net loss resultsb. a net income resultsc. assets equal liabilitiesd. assets are increased
Which of the following is an asset?a. Mortgage payableb. Investmentsc. Common stockd. Retained earnings
103. Dividends are reported on thea. earnings statement.b. preserved income statement.c. balance sheet.d. earnings statement and balance sheet.
Jimmy"s Repair Shop started the year through full assets of $300,000 and also full liabilities of $240,000. During the year the service recorded $630,000 in profits, $330,000 in costs, and dividends of $60,000. Stockholders" equity at the end of the year wasa. $360,000.b. $300,000.c. $240,000.d. $270,000.
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BSolution: ($300,000 -$240,000) +($630,000 - $330,000) - $60,000 =$300,000
Which of the complying with is not a satismanufacturing facility statement of the accounting equation?a. Assets = Stockholders" Equity - Liabilitiesb. Assets = Liabilities + Stockholders" Equityc. Assets - Liabilities = Stockholders" Equityd. Assets - Stockholders" Equity = Liabilities
The accountancy equation may be expressed asa. Assets = Stockholders" Equity - Liabilities.b. Assets = Liabilities + Stockholders" Equity.c. Assets + Liabilities = Stockholders" Equity.d. Assets + Stockholders" Equity = Liabilities.
132. If complete liabilities boosted by $90,000 and also stockholders" equity raised by $30,000 throughout a duration of time, then complete assets have to change by what amount and direction in the time of that very same period?a. $120,000 decreaseb. $120,000 increasec. $150,000 enhanced. $180,000 increase
161. Marvin Services Corporation had the following accounts and also balances:Accounts payable $30,000 Equipment $35,000Accounts receivable 5,000 Land also 35,000Buildings ? Unearned business revenue 10,000Cash 15,000 Total stockholders" equity ?If the balance of the Buildings account was $70,000 and $5,000 of Accounts Payable were passist in cash, what would certainly be the balance of the total stockholders" equity?a. $135,000b. $120,000c. $170,000d. $130,000
BSolution: ($5,000 +$70,000 + $10,000 + $35,000 +$35,000) - ($25,000 + $10,000) =$120,000 - <(A/P bal - A/P pd.) + un. ser. rev.>
163. Marvin Services Corporation had the adhering to accounts and also balances:Accounts payable $30,000 Equipment $35,000Accounts receivable 5,000 Land also 35,000Buildings ? Unearned company revenue 10,000Cash 15,000 Total stockholders" equity ?If complete stockholder"s equity was $95,000, what would be the balance of the Buildings Account?a. $35,000b. $135,000c. $145,000d. $45,000
DSolution: ($30,000 + $10,000 + $95,000) - ($5,000 + $15,000 + $35,000 + $35,000) =$45,000(A/P + un. ser. rev. + tot. st eq.) - (A/R + cash + equip. + land)
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