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Exercise On CH 1
Exercise On CH 1
Exercise
Indicate the section where each of the following would appear on
the statement of cash flows.
Sol:
1- A 5- A
2- C 6- C
3- B 7- A
4- A 8- A
Ex:
A B C
Equity Dec. 31,2004 10000 10000 10000
Owner investment during the year 120000 ? 87000
Owner withdrawals during the year ? 54000 20000
Net income (loss) for the year 32000 81000 (4000)
Equity Dec. 31, 2005 102000 99000 ?
Solve:
Mr: Kareem
1 Abo Zeed - 1 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
A- $ 62000
B- $ 62000
C- $ 73000
Ex:
Ex:
Mr: Kareem
1 Abo Zeed - 2 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
1. Assume that total increase in cash = 50000 and total decrease in
cash = $ 20000, so the balance of cash = …………
2. Income statement in linked to statement of owner's equity by
………….
Solve:
1. 30000
2. Net income or (loss)
Ex:
Dec. 31,2005
? 30000 91000 66000 60000
Assets
28000 23000 ? 41000 15000
Liabilities
During year 2005:
2000 3000 -0- 3000 5000
Owner investment
15000 ? (7000) ? 20000
Net income (loss)
8000 5500 3000 2000 10000
Owner withdrawals
Mr: Kareem
1 Abo Zeed - 3 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
b. what is the equity amount on December31, 2005?
Solve:
1) .
a. Equity = assets – liabilities
= 66000 – 32000 = 34000
b.
c. .
Assets = 28000 + 43000 = 71000
2) .
Mr: Kareem
1 Abo Zeed - 4 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
A. Equity = 285000 – 22000 = 6000
B. Equity = 30000 – 23000 = 7000
C. .
3) .
A. .
Mr: Kareem
1 Abo Zeed - 5 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
Equity – Dec. 31,2004 $ 35000
+ owner investment 3000
+ net income X
- Owner withdrawals (2000)
Equity – Dec. 31,2005 $ 25000
Multiple choice :-
Mr: Kareem
1 Abo Zeed - 6 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
d. Upon completion of the sale or when services have been
performed and the business obtain the right to collect the
sale price.
3) Assets created by selling goods and services on credit are
a. Account payable
b. Account receivable
c. Liabilities
d. Expenses
Ex:
Sol:
Mr: Kareem
1 Abo Zeed - 7 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350
Exercise on Ch1
Statement of cash flow
Cash flow from Operating activities :-
Cash in flow: 15000 + 3000 = $18000
Mr: Kareem
1 Abo Zeed - 8 - Mob: 0128385030
Email: KareemAboZeed@yahoo.com : 0106774350