ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period, the period's change in total liabilities was a $65,000 increase. True False False ANSWER: Assets = Liabilities + Equity RATIONALE: Stockholders’ = Liabilities + (–$35,000) –$30,000 Liabilities = +$5,000 Moderate DIFFICULTY: Bloom's: Remembering ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the same period, the period's change in total stockholders' equity was a $200,000 increase. True False True ANSWER: Assets = Liabilities + Equity RATIONALE: Stockholders’ +$190,000 = + Equity –10,000 Stockholders’ Equity = +$200,000 Stockholders’ Moderate DIFFICULTY: Bloom's: Applying ACCT.WARD.16.01-03 - 01-03 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic If net income for a company was $50,000, $20,000 in cash dividends were paid and the stockholders invested $10,000 in cash, the stockholders' equity increased by $40,000. True False True ANSWER: Increase in the stockholders' equity = Net income for the year Cash dividends + RATIONALE: – Shareholders' investment = $50,000 $20,000 + $10,000 = $40,000 – Easy DIFFICULTY: Bloom's: Applying FNMN.WARD.16.01-04 - LO: 01-04 LEARNING OBJECTIVES: ACCT.ACBSP.APC.06 - Recording Transactions ACCREDITING STANDARDS: ACCT.AICPA.FN.03 Measurement – BUSPROG: Analytic An account receivable is typically classified as a revenue. True False
ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic If total assets decreased by $30,000 during a specific period and stockholders' equity decreased by $35,000 during the same period, the period's change in total liabilities was a $65,000 increase. True False ANSWER: False RATIONALE: Assets = Liabilities + Stockholders’ Equity –$30,000 = Liabilities + (–$35,000) Liabilities = +$5,000 DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic If total assets increased by $190,000 during a specific period and liabilities decreased by $10,000 during the same period, the period's change in total stockholders' equity was a $200,000 increase. True False ANSWER: True RATIONALE: Assets = Liabilities + Stockholders’ Equity +$190,000 = –10,000 + Stockholders’ Equity Stockholders’ Equity = +$200,000 DIFFICULTY: Moderate Bloom's: Applying LEARNING OBJECTIVES: ACCT.WARD.16.01-03 - 01-03 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic If net income for a company was $50,000, $20,000 in cash dividends were paid and the stockholders invested $10,000 in cash, the stockholders' equity increased by $40,000. True False ANSWER: True RATIONALE: Increase in the stockholders' equity = Net income for the year – Cash dividends + Shareholders' investment = $50,000 – $20,000 + $10,000 = DIFFICULTY: Easy Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.01-04 - LO: 01-04 ACCREDITING STANDARDS: ACCT.ACBSP.APC.06 - Recording Transactions ACCT.AICPA.FN.03 – Measurement BUSPROG: Analytic An account receivable is typically classified as a revenue. True False $40,000
FinMan_Chapter_01_Introduction_to_Accounting_and_Business.docx