Question

Net income (in millions) $150 Shares outstanding (in millions) 300 Stock price $20.00

206) What is the price-earnings ratio?

A) 40.0.                            B) 60.0.                            C) 80.0.                            D) 20.0.

207. For a journal entry with only two lines, the following entry is valid: Decrease in Revenue, Decrease in Expense.
     1. True                                                                      B) False

208. Which of the following is recorded upon receipt of a payment on April 7, 2018, by a customer who pays a $900 invoice dated March 3, 2018, with terms 2/10, n/60?
     1. Credit Purchase Discounts $18.                            B) Debit Sales Discounts $18.

C) Debit Cash $900.                                                  D) Credit Accounts Receivable $882.

Date Quantity Price March 1 Beginning Inventory 20 $2 March 7 Purchase 15 3 March 11 Sale 25 7 March 12 Purchase 20 4

209) At is gross profit using LIFO cost flow assumptions?

A) $120.                           B) $105.                           C) $175.                           D) $80.

210. Temporary accounts are found
     1. On neither the Balance Sheet and Income Statements
     2. On the Balance Sheet
     3. On the Income statesment
     4. On both the Balance Sheet and Income Statements

Answer 1

Ques 1
A	40
EPS=	150/300	$       0.50
MPS		$    20.00
P/E	MPS/EPS	40.00
Ques 2
A.	TRUE
decrease in revenue is debited and decrease in expense is credited
ques 3
c.	debit cash $900
no discount since payment made after 10 days
Ques 4
D	$80
	Quantity	price	amount
Sales	25	7	175
Less:COGS
Mar-12	20	4	80
Mar-07	5	3	15
gross profit			80
Ques 5
c. on income statement
as these are closed to income summary and transferred
to retained earnings