73.A company purchased supplies for cash, which will be consumed during future months. Which of the following does not correctly describe the impact on the financial statements when the supplies are used during future months? A. Total assets will remain unchanged. B. Total assets will decrease. C. Operating expenses will increase. D. Operating income will decrease. 74.June's Printing Shop had the following information for office supplies: • Ordered $1,200 of supplies March 3 • Received half the order of supplies on March 16 • Used one-third of the supplies during March What is the total amount that should be reported […]

134.What is the primary objective of financial reporting?    135.How is the current ratio calculated and what does it measure?   136.The Lake Company has provided the following account balances: Cash $76,000; Short-term investments $8,000; Accounts receivable $96,000; Supplies $12,000; Long-term notes receivable $4,000; Equipment $192,000; Factory Building $360,000; Intangible assets $12,000; Accounts payable $90,000; Accrued liabilities payable $12,000; Short-term notes payable $42,000; Long-term notes payable $184,000. Requirement: What is Lake's current ratio?    137.The Superior Company has provided the following account balances: Cash $152,000; Short-term investments $18,000; Accounts receivable $36,000; Inventory $116,000; Long-term notes receivable $44,000; Equipment $174,000; Factory Building […]

98.Which of the following transactions would result in a decrease in the current ratio?   A. Collection of cash from an account receivable. B. Selling shares of stock to stockholders in exchange for cash. C. Purchasing a delivery vehicle by signing a long-term note payable. D. Purchasing land by paying cash. 99.Which of the following account balances would not be included in the calculation of the current ratio?   A. Accounts receivable. B. Short-term notes payable. C. Equipment. D. Supplies. 100.Which of the following statements does not properly describe the current ratio?   A. It measures the ability of a firm to pay its debts in the short-run. B. It is current assets […]

68.A company's January 1, 2016 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2016, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000 paying $10,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above?    A. $30,000. B. $110,000. C. $80,000. D. $194,000. 69.Which of the following describes the impact on the balance sheet of purchasing supplies for […]

54.Which of the following describes the amount of insurance expense reported on the income statement?  A. The amount of cash paid for insurance in the current period. B. The amount of cash paid for insurance in the current period less any unpaid insurance at the end of the period. C. The amount of insurance used up (incurred) in the current period to help generate revenue. D. The amount of cash paid for insurance that is reported within the statement of cash flows. 55.Which of the following would immediately cause a change in a corporation's retained earnings?  A. Net income or […]