# MBA560 QUIZ 1 (100% SOLUTION) - 88722

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## anjis_devis

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1. Hardin Company began operations in 2010. During the year, the following cash transactions

occurred:

• Issued stock for \$40,000
• Borrowed \$24,000 from bank
• Provided services to customers for \$53,000 cash
• Paid back \$8,000 of the loan from the bank
• Paid rent expense, \$9,000
• Paid operating expenses, \$29,000

Assuming that Hardin engaged in no transactions during the year other than those listed above, what was the amount of net income or loss for the year? (Points : 2)

\$19,000 net income

\$15,000 net income

\$12,000 net income

\$11,000 net loss

Question 2.2. Dale Company purchased land costing \$2,400 by paying cash. The company earned \$2,000 revenue on account and incurred \$1,100 of operating expenses on account. As a result of these transactions: (Points : 2)

Total assets increased by \$2,400.

Liabilities increased by \$1,100.

Total assets increased by \$5,400.

Both A and B.
Question 3.3. Liabilities are: (Points : 2)

claims of creditors.

the owner’s interest in the company.

claims of investors.

both A and B.

Question 4.4. Parrot Company paid a \$300 cash dividend. Which of the following choices accurately reflects how this event would affect the company's financial statements?

 Balance Sheet Income Statement

 Row Assets = Liab. + Equity Rev. - Exp. = Net Inc.

Statement of Cash Flows

One

NA

=

300

+

(300)

NA

-

300

=

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