The Following Information Applies to the Questions Displayed Below

question 12

Multiple Choice

The following information applies to the questions displayed below
Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)

1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $650 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.

During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)

1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.

-What is the amount of assets that will be reported on Packard's balance sheet at the end of Year 2?

• A)$2,115
• B)$440
• C)$2,215
• D)$395

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Definitions:

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view of the concern.

Opinion

A belief or judgment formed about something, not necessarily based on fact or knowledge.

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public; it involves practicing good citizenship through sustainable business operations and philanthropy.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from fraudulent financial reporting by corporations, requiring strict adherence to accounting standards and the establishment of internal controls.