GBA 5205 Exam 1 Accounting- University of Houston Downtown
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Course
GBA 5205
Institution
GBA 5205
GBA 5205 Exam 1 Accounting- University of Houston Downtown/GBA 5205 Exam 1 Accounting- University of Houston Downtown/GBA 5205 Exam 1 Accounting- University of Houston Downtown/GBA 5205 Exam 1 Accounting- University of Houston Downtown/GBA 5205 Exam 1 Accounting- University of Houston Downtown
• Question 1
4.16666 out of 4.16666 points
Jackson Company paid $500 cash for salary expenses. Which of the following choices accurately reflects how this
the company's financial statements?
Assets = Liab. + Equity Rev. − Exp. = Net Inc. C
A. NA = 500 + (500) NA − 500 = (500)
B. (500) = NA + (500) NA − 500 = (500) (
C. (500) = NA + (500) NA − NA = NA (
D. (500) = NA + (500) NA − 500 = (500)
Selected Answer:
Option B
Answers: Option A
Option B
Option C
Option D
Response Feedback: correct
MC Qu. 1-88 Jackson Company paid...
AACSB: Analytical Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Blooms: Analyze
Difficulty: 2 Medium
Learning Objective: 01-10 Record business events using a horizontal financial statemen
Topic: The Horizontal Financial Statements Model
• Question 2
4.16666 out of 4.16666 points
The following accounts and balances were drawn from the records of Carolina Company on December 31,
Year 1:
, The amount of Carolina’s retained earnings after closing on December 31, Year 1 was:
Selected Answer:
$4,900.
Answers: $5,900.
$7,200.
$3,900.
$4,900.
Response Feedback: correct
MC Qu. 2-45 The following accounts and balances...
AACSB: Knowledge Application
AICPA: BB Critical Thinking
AICPA: FN Measurement
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 02-04 Identify the steps in the accounting cycle.
Topic: Steps in an Accounting Cycle
• Question 3
4.16666 out of 4.16666 points
Packard Company engaged in the following transactions during Year 1, its first year of operations.
(Assume all transactions are cash transactions.)
1. 1) Acquired $950 cash from the issue of common stock.
2. 2) Borrowed $420 from a bank.
3. 3) Earned $650 of revenues cash.
4. 4) Paid expenses of $250.
5. 5) Paid a $50 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash
transactions.)
6. 1) Issued an additional $325 of common stock.
7. 2) Repaid $220 of its debt to the bank.
8. 3) Earned revenues of $750 cash.
9. 4) Incurred expenses of $360.
10. 5) Paid dividends of $100.
, Packard Company's net cash flow from financing activities for Year 2 is:
Selected Answer:
$5 inflow
Answers: $220 outflow
$320 outflow
$5 inflow
$225 inflow
Response Feedback: correct
MC Qu. 1-69 Packard Company engaged in the following transactions...
AACSB: Knowledge Application
AICPA: BB Critical Thinking
AICPA: FN Measurement
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 01-08 Prepare a statement of cash flows.
Topic: Preparing the Statement of Cash Flows
• Question 4
4.16666 out of 4.16666 points
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in
the following cash transactions:
1. 1) issued stock for $40,000
2. 2) borrowed $25,000 from its bank
3. 3) provided consulting services for $39,000 cash
4. 4) paid back $15,000 of the bank loan
5. 5) paid rent expense for $9,000
6. 6) purchased equipment for $12,000 cash
7. 7) paid $3,000 dividends to stockholders
8. 8) paid employees' salaries of $21,000
What is Yowell's net income for Year 1?
Selected Answer:
$9,000
, Answers:
$9,000
$30,000
$18,000
$6,000
Response correct
Feedback:
MC Qu. 1-68 Yowell Company began operations on...
AACSB: Knowledge Application
AICPA: BB Critical Thinking
AICPA: FN Measurement
Blooms: Apply
Difficulty: 2 Medium
Learning Objective: 01-10 Record business events using a horizontal financial
statements model.
Topic: The Horizontal Financial Statements Model
• Question 5
0 out of 4.16666 points
Packard Company engaged in the following transactions during Year 1, its first year of operations.
(Assume all transactions are cash transactions.)
1. 1) Acquired $950 cash from the issue of common stock.
2. 2) Borrowed $420 from a bank.
3. 3) Earned $650 of revenues cash.
4. 4) Paid expenses of $250.
5. 5) Paid a $50 dividend.
During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash
transactions.)
6. 1) Issued an additional $325 of common stock.
7. 2) Repaid $220 of its debt to the bank.
8. 3) Earned revenues of $750 cash.
9. 4) Incurred expenses of $360.
10. 5) Paid dividends of $100.
What is Packard's retained earnings account balance at the end of Year 1 before the process of
closing the accounts has been undertaken?
Selected Answer:
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