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Multiple Choice Questions Use The Following Information For Multiple Choice Exercises
Multiple Choice Questions Use The Following Information For Multiple Choice Exercises
Use the following information for Multiple-Choice Exercises 1-1 and 1-2:
At December 31, Marker reported the following items: cash, $8,200; inventory, $3,700; accounts
payable, $6,300; accounts receivable, $3,900; common stock, $5,900; property, plant, and
equipment, $10,000; interest payable, $1,400; retained earnings, $12,200.
1. Refer to the information for Marker above. What is the total of Marker’s current assets?
a. $10,100
b. $15,800
c. $16,000
d. $25,800
2. Refer to the information for Marker above. What is Marker’s stockholders’ equity?
a. $5,900
b. $12,200
c. $18,100
d. $25,800
a. The income statement provides information about the future profitability and growth of a
company.
b. The income statement shows the results of a company’s operations at a specific point in
time.
d. Typical income statement accounts include sales revenue, unearned revenue, and cost of
goods sold.
a. $9,150
b. $14,550
c. $19,950
d. $31,880
c. Retained earnings represents accumulation of the income that has not been distributed as
dividends.
6. Which of the following sentences regarding the statement of cash flows is false?
a. The statement of cash flows describes the company’s cash receipts and cash payments for
a period of time.
b. The statement of cash flows reconciles the beginning and ending cash balances shown on
the balance sheet.
c. The statement of cash flows reports cash flows in three categories: cash flows from business
activities, cash flows from investing activities, and cash flows from financing activities.
d. The statement of cash flows may be used by creditors to assess the creditworthiness of a
company.
a. The auditor’s opinion is typically included in the notes to the financial statements.
b. The notes to the financial statements are an integral part of the financial statements that
clarify and expand on the information presented in the financial statements.
c. The management’s discussion and analysis section does not convey any information that
cannot be found in the financial statements themselves.
d. The annual report is required to be filed with the New York Stock Exchange.
ANSWER
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