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FINANCIAL ACCOUNTING EXAM 1
LATEST 2025 WITH 350 ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS/
INTRO TO FINANCIAL ACCOU NTING
EXAM 1 (BRAND NEW)
The most important information needed to determine if companies can pay their current obligations is the
- projected net income for next year
- relationship between short-term and long-term liabilities
- net income for this year
- relationship between current assets and current liabilities - ANSWER-d.
relationship between current assets and current liabilities
The financial statement which presents a picture at a point in time of what a
business owns and what it owes is a(n):
- income statement.
- retained earnings statement.
- balance sheet.
- statement of cash flows.
- balance sheet
Which of the following is not a liability?Interest Payable
Unearned Service Revenue
Accounts Receivable 1 / 4
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Accounts Payable - ANSWER-Accounts Receivable
Ending retained earnings for a period is equal to beginning Retained earnings - Net income - Dividends.
Retained earnings + Net income - Dividends.
Retained earnings + Net income + Dividends.
Retained earnings - Net income + Dividends. - ANSWER-Retained earnings + Net income - Dividends.
Use the following data to determine the total dollar amount of assets to be classified as current assets.Whispering Winds Corp.Balance Sheet December 31, 2017
Cash $73000 Accounts receivable 99500 Inventory 149500 Prepaid insurance 75000 Stock investments (long-term) 196500 Land 196000 Buildings $208500 2 / 4
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Less: Accumulated depreciation (61500) 147000
Trademarks 115500 Total assets $1052000
Accounts payable $135000 Salaries and wages payable 10900 Mortgage payable 171500 Total liabilities $317400
Common stock $214100 Retained earnings 520500
Total stockholders' equity $734600 Total assets $1052000 Total liabilities and stockholders' equity $1052000
Entry field with correct answer
$247500
$397000
$593500
$317400 - ANSWER-casht+ accounts receivable + prepaid expenses + inventory + investments = $397000
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pg. 4 Use the following data to determine the total amount of working capital.
Sheridan Company Balance Sheet December 31, 2017
Cash $69500 Accounts receivable 102000 Inventory 140000 Prepaid insurance 90000 Stock investments (long-term) 193500 Land 185500 Buildings $227500
Less: Accumulated depreciation (72000) 155500
Trademarks 128500 Total assets $1064500
Accounts payable $138000 Salaries and wages payable 16400 Mortgage payable 155500 Total liabilities $309900
Common stock $231100 Retained earnings 523500 Total stockholders' equity $754600
Total liabilities and stockholders' equity $1064500
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