Question

Part 1

Prior to closing, Syracuse Company's accounting records showed the following balances:

Retained earnings$16,800 Service revenue 21,750 Interest revenue 1,800 Salaries expense 12,300 Operating expense 3,450 Interest expense 900 Dividends 2,700

After closing, Syracuse's retained earnings balance would be?

Part 2

Revenue on account amounted to $9,000. Cash collections of accounts receivable amounted to $8,100. Cash paid for expenses was $7,500. The amount of employee salaries accrued at the end of the year was $900. Cash flow from operating activities was

A)900

B)600

C)1500

D)8700

Part 3

The purpose of the accrual basis of accounting is to:

Match assets and liabilities in the proper period.

Report expenses when cash disbursements are made.

Report revenue when received.

Match revenues and expenses in the proper period.

Part 4

Earning revenue on account would be classified as a/an?

claims exchange transaction.

asset use transaction.

asset source transaction.

asset exchange transaction.

Part 5

Which of the following describes the effects of a claims exchange transaction on a company's financial statements?

	Assets	=	Liab.	+	Equity	Rev.	-	Exp.	=	Net Inc.	Cash Flow
A.	NA	=	NA	+	NA	NA	-	NA	=	NA	+OA
B.	+	=	+	+	NA	NA	-	NA	=	NA	+OA
C.	NA	=	+	+	-	NA	-	+	=	-	NA
D.	All of these could represent the effects of a claims exchange transaction.

A) option A

B)option B

C) option C

D)option D

Answer 1