Elston Company Compiled the Following Financial Information as of December

question 105

Multiple Choice

Elston Company compiled the following financial information as of December 31, 2017: $$\begin{array} { l r } \text { Service revenue } & \$ 840,000 \\\text { Common stock } & 180,000 \\\text { Equipment } & 240,000 \\\text { Operating expenses } & 750,000 \\\text { Cash } & 210,000 \\\text { Dividends } & 60,000 \\\text { Supplies } & 30,000 \\\text { Accounts payable } & 120,000 \\\text { Accounts receivable } & 90,000 \\\text { Retained earnings, } 1 / 1 / 17 & 450,000\end{array}$$ Elston's assets on December 31, 2017 are

• A)$1,410,000.
• B)$1,020,000.
• C)$480,000.
• D)$570,000.

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Definitions:

Bank Reconciliation

The process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement.

Bank Balance

Bank balance refers to the total amount of money available in a bank account at a specific point in time, as recorded by the financial institution.

Book Balance

The balance in a financial account according to a company's accounting records, not necessarily reflective of available funds.

Statement of Cash Flows

A report detailing the total cash received by a company from its operational activities and external investments, alongside the total cash expenditures for business activities and investments over a specific time frame.