The statement of cash flows would disclose the withdrawal of cash by the owner a. in the financing activities section. b. in the investing activities section. c. in the notes to the financial statements. d. in the operating activities section. Which of the following is an example of an operating activity? a. Obtaining capital from owners b. Purchasing equipment c. Selling goods and services to customers d. Selling land The owner's Capital account is found on the a. balance sheet debit column and nowhere else. b. trial balance credit column, adjusted trial balance credit column, and balance sheet credit column of a worksheet. c. trial balance credit column, adjustments credit column, adjusted trial balance trial balance credit column, and balance sheet credit column of a worksheet. d. trial balance credit column and income statement debit column of a worksheet e. trial balance debit column, adjustments debit column, adjusted trial balance credit column, and income statement credit column of a worksheet. if the amount of profit for the current period is less than the amount of the owner's withdrawals, there will be a(n) a. decrease in the Cash account. b. decrease in the owner's Capital account. c. increase in liabilities on the balance sheet. d. increase in the Cash account. e, increase in the owner's Capital account. Profit for Jeffrey Franco's Treasures is P250,000 for the current year. The owner withdrew P30,000 per month for personal living expenses. The owner's Capital account will show a net a. decrease of P110,000. b. decrease of P360,000. c. increase of P610,000. d. increase of P110,000, e. increase of P360,000 . Use the following information to answer questions 16 to 20 below. Villanueva Realty had the following balance sheet accounts and balances: Accounts Payable 60,000 Equipment 70,000 Accounts Receivable Accounts Receivable 10,000 Arlyn Villanueva, Capital ? Building ? Land 70,000 Cash 30,000 Accounts Payable60,000Equipment 70,000 "Accounts Receivable"10,000Arlyn Villanueva, Capital ? Building?Land 70,000 Cash30,000 If the balance of the Villanueva, Capital account was P210,000, what would be the balance of the Building account? a. P250,000 b. P 40,000 c. P90,000 d. P210,000 If the balance of the Building account was P170,000 , what would be the total of liabilities and owner's equity? a. P170,000 b. P270,000 c. P320,000 d. P350,000
Answer
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Alejandro SantosElite · Tutor for 8 years
Answer
<p> 11.a 12.c 13.b 14.b 15.b 16.c 17.c</p>
Explanation
<p> </p><br /><p>【Explanation】: 11. The statement of cash flows would disclose the withdrawal of cash by the owner under the financing activities section. Cash flows represent how a business gains and uses up cash. Owner withdrawals, also called draws, are part of the business's financial activities since they are transactions with the owner.</p> <br /><br /><p>12. An operating activity in a business refers to the central activities to its functioning. It's these activities that make up the bulk of the business's income. As the business primarily functions to sell goods and deliver services, answer 'c' is the most suitable</p> <br /><br /><p>13. The owner’s Capital account can be seen on the credit column of the balance sheet, trial balance, and adjusted trial balance. The Capital account reflects how much of the business's total equity the owner possesses. As the majority owner of the company, their contributions towards the company's equity — the Capital — are contributors. Hence answer 'b' is the right choice.</p> <br /><br /><p>14. Profits, and any decrease in them over a period have an impact on the Capital account of a business owner because profits bring a rise in the owner's equity. Conversely, the same is also correct and in this case, If the business owner withdrew more than their profits, the excess withdrawals decrease the Capital account money-in-money-out entities of Quickbooks accountant. So, option 'b' — decrease in the owner's Capital account — is true.</p> <br /><br /><p>15. Answer 'b' is correct because the owner's withdrawals sum to P30,000*12 i.e. P360,000 a year. Since Jeffrey Franco's yearly profits are P250,000, which is lass than his withdrawals, she has a net loss in her Capital account to the sum of P360,000 - P250,000 = P110,000. No other answer but option 'b' communicates this notion properly.</p><br /><br /><p>16. Given Owner's Equity = Firm Assets - existing Liability, Plugging in values results in proper balance for Building account: we are taught the sum of Owners' Equity as P210,000 and the liabilities as P60,000. And we are instructed the Asset Elements as: Account Receivable ? = X (let's call this X), Equipment= 70,000, Entertainment=70,000, Cash = 30,000 and Building ? = Y ( enforcement verify Y). Hence, by elementary computation we have \$150,000 + X + Y = P210,000 + P60,000. simplifying this provides answer 'c': Y=90,000.</p><br /><br /><p>17. In this condition, utilising the proportional analysis like in the earlier dilemma, following summing the costs of building of P170,000 as chosen, we receive Y which enables the inference that Y = P320,000. In this way including Whole indebtedness and Owner’s equity is 'c': P320,000 of all plausible options.</p>
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