The Following Transactions Occurred During March, the First Month of Operations

question 151

Multiple Choice

The following transactions occurred during March, the first month of operations for Canyon Products, Inc.:

1. Issued 50,000 shares of capital stock in exchange for $600,000 cash.
2. Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance.
3. Made a $60,000 cash payment on the note payable from the purchase of land.
4. Purchased equipment on credit from Burton, Inc. for $63,000.

What is the balance in the Cash account at the end of March?

• A)$810,000
• B)$210,000
• C)$600,000
• D)$390,000

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Definitions:

Expected Number

The average value or mean of a random variable; it is the long-run average outcome of a random event repeated many times.

False Negative

A false negative occurs when a test incorrectly indicates that a particular condition or attribute is absent.

False Positive

An error in data reporting in which a test result improperly indicates the presence of a condition (such as a disease) when it is not actually present.

Expected Value

The long-run average value of repetitions of the experiment it represents, often used in probability and statistics to predict outcomes of random events.