Elston company compiled the following financial information as of december 31, 2022:

QUESTIONS FOR FINANCIAL

ACCOUNTING MOOC:

Module 1 – Financial Statements and

Business Decisions

Question 1: 1.1 Why we study accounting

Which of the following best describes accounting?

It records economic data but does not communicate the data to users according to

any specific rules.

It is an information system that provides reports to users regarding economic

activities and condition of a business.

It is of no use by individuals outside of the business.

It is used only for filling out tax returns and for financial statements for various

type of governmental reporting requirements.

Question 2: 1.2 Accounts

"Revenues" are best described as

decreases in assets resulting from the sale of products or services.

increases in assets resulting from the sale of products or services.

assets used or consumed in the sale of products or services.

an increase in the financing activities.

Question 3:

An income statement represents:

a list of resources available, resources committed, and the difference between the

two

the flows of cash into and out of an organization over a period of time

the amount of money which a company would raise if sold

the resources acquired and consumed through an organization’s operations over a

period of time

Question 4: 1.2 Four Basic Financial Statements

A business's balance sheet cannot be used to accurately predict what the business might be sold for

because

it identifies all the revenues and expenses of the business.

assets are generally listed on the balance sheet at their historical cost, not their

Gilkey Corporation began the year with retained earnings of $465,000. During the year, the company issued
$630,000 of common stock, recorded expenses of $1,800,000, and paid dividends of $120,000. If Gilkey's
ending retained earnings was $495,000, what was the company's revenue for the year?

Elston Company compiled the following financial information as of December 31, 2014:
Service revenue $700,000
Common stock 150,000
Equipment 200,000
Operating expenses 625,000
Cash 175,000
Dividends 50,000
Supplies 25,000
Accounts payable 100,000
Accounts receivable 75,000
Retained earnings, 1/1/14 375,000

Elston's retained earnings on December 31, 2014 are

Elston Company compiled the following financial information as of December 31, 2014:
Service revenue $700,000
Common stock 150,000
Equipment 200,000
Operating expenses 625,000
Cash 175,000
Dividends 50,000
Supplies 25,000
Accounts payable 100,000
Accounts receivable 75,000
Retained earnings, 1/1/14 375,000

Elston's stockholders' equity on December 31, 2014 is

Students also viewed

Introduction to Financial Statements1-11Equipment240,000Operating expenses750,000Cash210,000Dividends60,000Supplies30,000Accounts payable120,000Accounts receivable90,000Retained earnings, 1/1/2022450,000

48.Benedict Company compiled the following financial information as of December 31, 2022:Service revenue$1,120,000Common stock240,000Equipment320,000Salaries and wages expense400,000Rent expense100,000Depreciation expense500,000Cash280,000Dividends80,000Supplies40,000Accounts payable160,000Accounts receivable120,000Retained earnings, 1/1/2022600,000

49.Marvin Services Corporation had the following accounts and balances:Accounts payable$30,000 Equipment$35,000Accounts receivable5,000 Land35,000 Buildings? Unearned servicerevenue10,000 Cash15,000 Total stockholders' equityIf the balance of the Buildings account was $85,000, what would be the total of liabilities?

50.Based on the following data, what are total liabilities?