Homework answers / question archive / 1) During 2016, Banigo Corporation experienced an increase in total assets of $72,600 and an increase in total liabilities of $40,900

1) During 2016, Banigo Corporation experienced an increase in total assets of $72,600 and an increase in total liabilities of $40,900

Finance

Share With

---

1) During 2016, Banigo Corporation experienced an increase in total assets of $72,600 and an increase in total liabilities of $40,900. Assuming that capital stock increased by $5,000 and no dividends were paid, calculate Banigo's net income or net loss for 2016.

a. Net loss of $45,900

b. Net income of $26,700

c. Net income of $67,600

d. Net loss of $31,700

2. Which of the following statements is FALSE?

Select one:

a. The statement of cash flows shows the cash inflows and outflows over a period of time.

b. The statement of retained earnings shows the change in retained earnings between the beginning and end of a period.

c. The income statement reflects a company's profitability during a period of time.

d. The balance sheet reflects a company's profitability from operations.

e. The balance sheet represents a “snapshot” of the company's solvency and financial position.

3. corporation is:

Select one:

a. An unincorporated business owned by two or more persons.

b. A business chartered directly by Congress.

c. A business incorporated under the laws of a state and owned by a single proprietor.

d. A business incorporated under the laws of a state and owned by stockholders.

e. Only incorporated by the IRS.

f. A government agency.

4.  Given the following list of accounts, calculate Total Assets: Accounts Receivable $10,000 Capital Stock 20,000 Cash 25,300 Equipment 16,800 Fees Earned 44,400 Miscellaneous Expense 17,800 Rent Expense 3,250 Retained Earnings 7,850 Salaries Expense 15,400 Wages Expense 15,000

5. Johnson, Inc. paid rent expense of $3,500 for the month of October. How is this transaction recorded in the company s accounting records?

Decrease in cash $3,500 and decrease in retained earnings $3,500

Decrease in cash $3,500 and increase in retained earnings $3,500

Increase in cash $3,500 and decrease in retained earnings $3,500

Increase in cash $3,500 and increase in retained earnings $3,500