University Of Arizona ATMO 005 Quiz 2 1)Which financial statement reports how much cash a company has?  Income statement Statement of wealth Statement of retained earnings Currency sheet None of the above   2

University Of Arizona

ATMO 005

Quiz 2

1)Which financial statement reports how much cash a company has?

 Income statement

Statement of wealth

Statement of retained earnings Currency sheet

None of the above

2. The Lange Corporation began operations on January 1st and the following information was available at the end of January: (a) Inventory $16,000, (b) Accounts payable $5,000, (c) Accounts receivable $9,000, (d) Cash $42,000, (e) Equipment $79,000, (f) Notes payable $38,000, (g) Revenue

$47,000, (g) Utilities expense $2,000 and (h) Payroll expense $22,000 and (i) Capital $80,000. What is the company’s net income for the month?

3. Which of the following represents the expense to produce a product, which has been sold? Inventory

Inventory expense

Cost of goods produced

 Cost of goods sold

None of the above

4. The Blue Bunny Ice Cream Company produces and sells ice cream. The company recently purchased some cream. Which of the following would be used to record the transaction in the accounting framework?

(Cash), (Cost of Goods Sold)

Cash, Revenue

(Cash), Inventory

(Inventory), (Cost of Goods Sold) Accounts Receivable, Revenue

5. For this question, start with the most recent single day of financial results for your virtual company (i.e. class section in Lemonade Tycoon). Then assume that the following day, after all transactions have been recorded and summarized, your company’s liabilities increased by $10 and your total equity increased by $15, what amount would your total assets be?