Consider the following account balances of the Shattuck Law Firm as of December

61. Liabilities are shown in which of the following statements? 

A. Income statement.
B. Statement of cash flows.
C. Balance sheet.
D. Statement of stockholders' equity.

62. Consider the following account balances of the Shattuck Law Firm as of December 31, 2012:

 

How many of these accounts would appear in Shattuck's 2012 income statement?
A. Five.
B. Four.
C. Three.
D. Two.

Salaries Expense, Service Revenue, and Utilities Expense.

63. Consider the following account balances of the Shattuck Law Firm as of December 31, 2012:

 

How many of these accounts would appear in Shattuck's 2012 balance sheet?
A. Five.
B. Four.
C. Three.
D. Two.

Accounts Payable, Cash, Common Stock, Supplies, and Retained Earnings.

64. If total change in cash = $44,000, net operating cash flows = $22,000, and net investing cash flows = ($13,000); then net financing cash flows =
A. $15,000.
B. $25,000.
C. $35,000.
D. $45,000.

Total change in cash = net operating cash flows + net investing cash flows + net financing cash flows.

65. For the past five years, Mookie Consulting Services reported the following annual net income and dividend amounts:

 

If Mookie had Retained Earnings of $88,000 at the end of year 5, what was the company's Retained Earnings at the beginning of Year 1?
A. $13,000.
B. $25,000.
C. $7,000.
D. $1,000.

Beginning retained earnings = ending retained earnings ($88,000) - total net income ($87,000) + total dividends ($12,000).

66. Which of the following items is reported in the statement of stockholders' equity? 

A. Total assets.
B. Total expenses.
C. Net income.
D. Operating cash flows.

67. Which of the following statements is NOT correct about the financial statements? 

A. An income statement reports revenues, expenses, and net income information.
B. The statement of stockholders' equity presents common stock, dividends, and retained earnings information.
C. A balance sheet reports assets, liabilities, revenues, and expenses.
D. The statement of cash flows shows cash inflows and outflows from operating, financing, and investing activities.

68. Which financial accounting number impacts stock prices more than any other single piece of information? 

A. Retained earnings.
B. Net income.
C. Common stock.
D. Total assets.

 

69. The balance sheet depicts which of the following equations? 

A. Net income = revenue - expenses.
B. Ending retained earnings = beginning retained earnings + net income - dividends.
C. Assets = liabilities + stockholders' equity.
D. Net cash flows = total cash inflows - total cash outflows.

70. Which financial statement reports a company's retained earnings? 

A. Income statement.
B. Balance sheet.
C. Statement of cash flows.
D. All of the above.