Multiple Choice
Which of the following accounts are typically found on an income statement?
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1. Introduction to Accounting
The Financial Statements
Multiple Choice
Given the following account balances for Cowboy Law Firm at the end of December:- Cash: \$12,000- Accounts Receivable: \$5,000- Supplies: \$2,000- Accounts Payable: \$3,000- Common Stock: \$10,000- Retained Earnings: \$6,000What is the total amount of assets reported on the balance sheet at December 31?
A
\$15,000
B
\$21,000
C
\$17,000
D
\$19,000
Verified step by step guidance1
Step 1: Understand the components of the balance sheet. The balance sheet is divided into three main sections: assets, liabilities, and equity. Assets represent resources owned by the company, liabilities represent obligations, and equity represents the owners' claims on the company.
Step 2: Identify the accounts that are classified as assets. In this problem, the accounts classified as assets are Cash (
\$12,000
), Accounts Receivable (
\$5,000
), and Supplies (
\$2,000
).
Step 3: Add the values of all asset accounts to calculate the total assets. Use the formula:
Step 4: Substitute the given values into the formula:
Step 5: Perform the addition to find the total assets. This will give you the total amount of assets reported on the balance sheet at December 31.
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