Finance Questions

What is the difference between a shareholder and an owner of a corporation-shareholder owns only a portion of the shares of common stock, whereas an owner owns all shares of common stock -owners are responsible to pay the company's debts when filing for bankruptcy, but the shareholders are not-shareholders occasionally recieve dividends, but owners do not -nothing, they are same things

A company uses cotton to make cloth. When the cloth is sold, the cost of the cotton will be recognized as -dividends -expense -liability -revenue

Go to community college, try to go to instate schools, work hard, and apply for scholarships.

is the total amount paid in by stockholders for the share the purchase

are distributions of cash or other assets to stockholders

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck, assets will be increased by -$30,000-$10,000-$40,000-$70,000

Harleys Insurance Company has assets of $5million and liabilities of $3.5 million. What is the amount of stockholders' equity -$700,00-$1.3million -$1.4 million -$1.5 million

Businesses sometimes have to spend money to make money. Which of the following expenditures would be classified as an asset?-cleaner's salary at a hotel -rent paid for office premises -wages for cashiers at a discount store -a new oven for a bakery

After closing entries are journalized and posted -all permanent accounts have zero balances -all temporary accounts have zero balances -the adjusted trial balance can be prepared -retained earnings has a zero balance

A bank received its employees' time cards on July 10, and payday is on July 15. The bank will need to post this transaction in which section in its accounting records on July 10? -liabilities -dividends -revenues -assets

A landscaping company purchases lawn equipment to provide its services. The potential future economic benefit of the equipment allows it to be classified as -expense -asset -liability -dividend

are the gross increases in stockholders equity resulting from the business activites entered for the purpose of earning income

The adjusted trial balance is -prepared prior to adjusting entries -prepared after financial statements -ensures there are no errors as long as debits equal to credits -used to prepare financial statements

Accumulated Depreciation -has a normal debit balance and offsets equipment on the balance sheet -has a normal credit balance and offsets equipment on the balance sheet -has a normal debit balance and increases expenses on the income statement -has a normal credit balance and decreases expense on the income statement

QRS industries is in the process of liquidation. Which of the following parties' claims will be settled first-board of directors -stockholders-customers-creditors

A company has total assets valued at $5.7 million, total liabilities of $1.4 million, and retained earnings of $300,00. If the company wants 75% of its assets to be funded by stockholders' equity, it needs to ________ its stockholders' equity -increase decrease

What is a company's balance in its Common Stock account if its assets are valued at $425,000, liabilities are $175,000, and retained earnings are $200,000-$250,000-$600,000-$400,000-$50,000

Which of the following correctly depicts how each of the following affects Stockholder's Equity-revenues decrease stockholder's equity -expenses decrease stockholder's equity -dividends increase stockholder's equity -cash increases stockholder's equity

All of the following accounts are reported on the income statement except?-prepaid insurance expense -service revenue -rent expense -advertising expense

Rider Company is in the process of preparing closing entries. It first closes its revenue accounts by crediting the Income Summary account for $68,000 and then, closes its expense accounts by debiting the Income Summary account for $45,000. The entry to then close the Income Summary account is - credit Income Summary, $23,000, and debit Retained Earnings, $23,000-debit Income Summary $23,000, and credit Retained Earnings, $23,000-debit Income Summary, $68,000, and credit Income Summary, $45,000-debit Dividends, $45,000, and credit Income Summary, $45,000