Brandon Watkins /Exam #1 Improvement
Question 10.
Univeo, Inc. had revenues of $245,000, expenses of $180,000, and dividends of $45,000 during 2015. Which of the following statements is correct? a. Net income for 2015 totaled $20,000. I Selected b. Net income for 2015 totaled $65,000. Correct answer c. Total retained earnings decreased by $20,000 during 2015. d. Total retained earnings increased by $65,000 during 2015.
I originally chose this answer because I subtracted everything so there was nothing outstanding.
I found out that the dividends are in a separate category so they are not included in the calculation. Question 21.
Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect …show more content…
the cash flows from investing activities section. I selected
I selected my answer because I was thinking that they had not paid off the equipment so I was thinking investments
I found out that the equipment is what makes the factory run so it has considered operational
Question 25
A&M Co. provided services of $1,000,000 to clients on account. How does this transaction affect A&M's accounts? a. Increase cash and decrease accounts receivable by $1,000,000 each b. Increase accounts receivable and revenues by $1,000,000 each Correct c. Increase accounts receivable and cash by $1,000,000 each d. Increase accounts receivable and unearned revenues by $1,000,000 each I selected
I was thinking that if it is on account that it wouldn’t have been received yet
I found out that the money is still considered on a balance sheet even if it is still on a credit line

Question 27. Which of the following should be shown on a statement of cash flows under the financing activity section? a. The issuance of a long-term note to acquire land b. The purchase of a long-term investment in the common stock of another company I picked c. The payment of cash to retire a long-term note Correct d. The proceeds from the sale of a