As of December 31, Year 1, Mason Company had $500 cash. During Year 2, Mason earned $1,200 of cash revenue and paid $800 of cash expenses. What is the amount of cash that will be reported on the balance sheet at the end of Year 2?
A. $400
B. $2,500
C. $900
D. $1,700
Answer: C
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The auditor notices significant fluctuations in key elements of the company's financial statements. If management is unable to provide an acceptable explanation, the auditor should:
A. consider the matter a scope limitation. B. intensify the examination with the expectation of detecting management fraud. C. withdraw from the engagement. D. perform additional audit procedures to investigate the matter further.
A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:
A. $86,100. B. $2,600. C. $114,400. D. $57,800. E. $59,200.
Which of the following is NOT suggested after you have given your speech?
a. Compare and contrast your expectations with your actual experiences. b. Critique your performance. c. Harshly criticize what you did wrong. d. Apply what you learned to your next speech.
Under the going concern principle, accountants must provide proof that the business will remain in operations long enough to use existing resources for their intended purpose
Indicate whether the statement is true or false