Question

6) If cash flows from operating activities is a positive amount, then: A) The company must have paid off more debts than it earned during the year B) The company may still have a decrease in the total amount of cash for the period. c) The company must have had a net profit for the year. D) The amount will be shown on the statement of cash flows in parentheses 7) Which of the following best defines an asset? A) Something with physical form that is valued at cost in the accounting records B) An economic resource representing cash or the right to receive cash in the near future. C) Something owned by a business that has a ready market value. D]An economic resource owned by a business and expected to benefit future operations. 8) If during the current year, liabilities of Hayden Travel decreased by $50,000 and owners' equity increased by $75,000, then: A) Assets at the end of the year total $25.000. B) Assets decreased during the year by S125,000. C) Assets increased during the year by $25,000. D) Assets at the end of the year total $125,000. The following information applies to the questions displayed below./ Astoria Co. had the following transactions during the month of August 2018: (1) Cash received from bank loans was $20,000. (2) Dividends of $9,500 were paid to stockholders in cash. (3) Revenues earned and received in cash amounted to $33,500. (4) Expenses incurred and paid were $26,000. 9) 9) At the beginning of August, 2018, owners' equity in Astoria was $160,000. Given the transactions of August, what will be the owners' equity be at the end of the month? A) $167,500. B) $158,000. C) $193,500. D) $150,500. 10) The term revenue can best be described as: A) The "bottom line" in the income statement. B) The cash received from selling goods and serving customers during a given accounting period. C) The net increase in owners' equity during a given period. Dy The selling price of goods and services rendered to customers during a given accounting period.

Answer 1

6. If the cash flows boom operating activites is positive amount then, Ang © The company must have ? net profit for the year . f) Ilhich of the following best e following best defines anej"? Aus . An Economic resoure owned by and to expected a business a benefit future operakons. during year, liabilches Of Hayden decreased by $50,000 and Owners equila Increased by $ 75,000 then Ans ☺ Asset at end of year hotad $25000. Assets . liabilhes longu Isabili bes Ազաե 4 4sooo $ 50000 paid for In liabilhes

during ming month of Aug. 2018 Ashona 6 lash received from bank loans - $ do y Dividends pard for Stakeholder - $ 9 10,000 500 3) Revenue rarned & rece venul ranned 1 receud in coush 4) Onpenses incurred, bound - - $ 33, 500 $ 26,000 $ 160,000 9 At beginning of Aug-2010 owner equity - Alb Owner equity at end - ? - Statement of Stake holder l owner) equity - particulars - Amout & a) Owner equity at beginning $ 160,000 b. Dividends paid $ / C9500) d) Revenue received 33500 d) Корми релия 26000 Total owner equity at end = $ 158,000 - Answer = B) 10) Revenue Answer-(B) - The cash receved from Seling. goods & Serving customers during a given acouting period.