41 when an organization purchases a machine for 12 000 cash which of the following i 4352277

41.When an organization purchases a machine for $12,000 cash, which of the following is true?

a.total equity stays the same

b.total liabilities decrease

c.total expenses increase

d.total assets increase

42.During May, the Family Resort had revenues of $20,000 and expenses of $8,000. The owner withdrew $7000 cash from the business during the month. If owners' equity on May 31 was $18,200, owners' equity on May 1 must have been

a.$13,200

b.$12,000

c.$6,200

d.$37,200

43.Activities that involve the production or delivery of goods for sale or the providing of services for sale should be listed under which classification on a statement of cash flows?

a.financing activities

b.refunding activities

c.operating activities

d.investing activities

44.A firm must depend on its _______ activities to generate profits.

a.investing

b.operating

c.nonrecurring

d.financing

45.Which of the following is an operating activity?

a.acquisition of inventory

b.contribution of cash from the owner(s) of the business

c.sale of long-term fixed assets

d.purchase of new factory building

46.Which of the following is an operating activity?

a.purchase of $10,000 of inventory from suppliers

b.payoff of a bank loan of $6,000

c.sale of fully depreciated assets for $1,500 previously used in operations

d.purchase of new equipment for $80,000 to be used in operations

47.Revenues and expenses are reported on a(n)

a.asset statement

b.cash flow statement

c.balance sheet

d.income statement

48.Net income can be expressed as

a.the excess of revenues over expenses that a business records during a period

b.the excess of expenses over revenues that a business records during a period

c.the amount of sales that a business reports during a period

d.the amount of resources created by a business during a period

49.An income statement

a.is prepared from information from the balance sheet of the business

b.shows cash flow

c.reports owner’s equity

d.reveals expenses and revenues for a fiscal period

50.Which of the following shows the typical order of the types of activities in the transformation process that takes place in organizations?

a.operating, investing, financing

b.financing, investing, operating

c.investing, operating, financing

d.operating, financing, investing

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