Cash ($62,500) + A/R ($18,750) + Land ($30,000) + Building ($31,250) + Equipment ($40,000) = $182,500 A/P ($2,500) + N/P (?) + Capital ($12,500) + R.E. ($125,000) = $182,500 $2,500 (Accounts Payable) + $42,500 (Notes Payable) = $45,000 Total Liabilities = $45,000 Analytic AICPA BB: Critical Thinking AICPA FN: Measurement AICPA FN: Reporting Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Explain how the statement of financial position; often referred to as the balance sheet; is an expansion of the basic accounting equation. Topic: A Starting Point: Statement of Financial Position 83. Which of the following is correct if at the end of Crystal Imports' first year of operations, Assets are $800,000 and Owners' Equity is $720,000? $800,000(Assets) - $720,000(Owners' Equity) = $80,000 (Liabilities) Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Explain how the statement of financial position; often referred to as the balance sheet; is an expansion of the basic accounting equation. Topic: A Starting Point: Statement of Financial Position 84. During the current year, the assets of Wheatley's increased by $362,000, and the liabilities increased by $260,000. The owners' equity in the business must have:
Cash ($62,500) + A/R ($18,750) + Land ($30,000) + Building ($31,250) + Equipment ($40,000) = $182,500 A/P ($2,500) + N/P (?) + Capital ($12,500) + R.E. ($125,000) = $182,500 $2,500 (Accounts Payable) + $42,500 (Notes Payable) = $45,000 Total Liabilities = $45,000 Analytic AICPA BB: Critical Thinking AICPA FN: Measurement AICPA FN: Reporting Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Explain how the statement of financial position; often referred to as the balance sheet; is an expansion of the basic accounting equation. Topic: A Starting Point: Statement of Financial Position 83. Which of the following is correct if at the end of Crystal Imports' first year of operations, Assets are $800,000 and Owners' Equity is $720,000? $800,000(Assets) - $720,000(Owners' Equity) = $80,000 (Liabilities) Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Accessibility: Keyboard Navigation Blooms: Apply Difficulty: 2 Medium Learning Objective: 02-04 Explain how the statement of financial position; often referred to as the balance sheet; is an expansion of the basic accounting equation. Topic: A Starting Point: Statement of Financial Position 84. During the current year, the assets of Wheatley's increased by $362,000, and the liabilities increased by $260,000. The owners' equity in the business must have:
Test-Bank-for-Financial-Accounting-16th-Edition-by-Williams.docx