Question

answer each question with an explnation of each answer please

12. Multiple Choice Question 121 Finney Company began the year by issuing $80000 of common stock for cash. The company recorded revenues of $740000, expenses of $640000, and paid dividends of $40000. What was Finney's net income for the year? b. $60000 $140000 $100000 $180000 c. d. Answer: 13. Multiple Choice Question 125 A balance sheet shows b. revenues, expenses, and dividends. assets, liabilities, and stockholders' equity. revenues, liabilities, and stockholders' equity, expenses, dividends, and stockholders' equity. d. Answer:

Answer 1

ANSWER 12 MCQ 121=OPTION C

EXPLANATION

NET INCOME=REVENUE- EXPENSE

=740000-640000=100000

HERE, ONE MORE THING IS GIVEN THAT IS DIVIDEND PAID WHICH IS NOT INCULDED NET INCOME BECAUSE IT IS NOT A INCOME OR EXPENSE FOR THE COMPANY . IT IS GIVEN AFTER THE CALCULATION OF NET PROFIT WHICH IS KNOWN AS APPROPRIATION OF PROFIT.

ANSWER 13 MCQ 125=OPTION B

EXPLANATION

A BALANCE SHEET IS A PART OF FINANCIAL STATEMENT WHICH INCLUDES ASSETS, LIABILITIES AND STOCKHOLDER'S EQUITY . WHERE ASSET SHOULD BE EQUAL TO LIABILITIES AND STOCKHOLDER'S EQUITY. AND EQUATION OF BALANCE SHEET LOOKS LIKE ASSET=LIABILITY+SHAREHOLDER'S EQUITY.