MULTIPLE CHOICE

1. The balance sheet reports:
|a. |the assets, liabilities, gains, and losses for a period of time |
|b. |the changes in assets, liabilities, and equity for a period of time |
|c. |the assets, expenses, and liabilities as of a certain date |
|d. |the probable future benefits, probable future sacrifices, and residual interest for a period of time |
|e. |the financial condition of an accounting entity as of a particular date |

ANS: E PTS: 1

2. Which of the following would not appear on a conventional balance sheet?
|a. |income taxes payable |
|b. |funds from operations |
|c. |cash surrender value of life insurance |
|d. |appropriation for contingencies (restriction of retained earnings) |
|e. |patents |

ANS: B PTS: 1

3. At the beginning of the year, Execon Company had total assets of $200,000, total liabilities of $110,000, and shareholders' equity of $90,000. For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000. At the end of the year, the company had total assets of $300,000 and its shareholders' equity was at $135,000. At the end of the year, Execon Corporation had total liabilities of:
|a. |$0