Question

1. Return on assets equals:
   1. Profit margin × Inventory turnover.                      B) Gross profit ratio × Asset turnover.
   2. C) Gross profit ratio × Inventory turnover.                D) Profit margin × Asset turnover.

33.If your employer declares bankruptcy, this can have a major effect on your pension if you are in a

1. Either plan                                                                             B) Defined Benefit Plan

C) Neither Plan                                                                            D) Defined Contribution Plan

37If you put $200 into a savings account that pays annual compound interest of 8% per year and then withdraw the money two years later, you will earn interest of $32.

2. False                                                                                      True

38In the Allowance Method when we we collect on a previously written off receivable

3. Assets stay the same, Net Income stays the same.
4. Assets decrease, Net Income decreases
5. Assets increase, Net Income increases.
6. It depends

43.The market will generally react to dividends on which day?

7. Declaration Date                                    B) Payment Date C) Record Date

44 Define Solvency

8. Ability to pay Current Debt
1. Ability to generate free cash flow from operations
10. Ability to pay both Current and Long Term Debt
11. Ability to pay Long Term Debt

45Which of the following expenses would you find in a factory

50. Electric expense                                                                     B) Both

C) Labor expense                                                                         D) Neither

66. What is usually a better predictor of future cash flow to the firm?

1. Past Income                                                                           B) Past Cash Flows

64. ABC purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years.

Using the straight-line method, depreciation expense for 2018 would be:

A) $60,000.                                 B) $11,000.                                C) $12,000.                                                  D) None of these.

65. ABC reports income tax expense of $800,000. Income tax payable at the beginning and end of the year are $50,000 and $70,000, respectively. What is the amount of cash paid for income taxes?

A) $800,000.                               B) $870,000.                               C) $780,000.                                                  D) $820,000.

73. Which is easier to calculate
    1. A firm's Cash Flow                                                                 B) A firm's Net Income

161. Executory Contracts are generally
     1. Recorded with an adjusting entry                                              B) Recorded with a closing entry

C) Not recorded                                                                            D) Recorded with a transaction entry

Accounts Payable $4,400 Salaries Expense 12,800 Cash 1,700 Common Stock 2,400 Service Revenue 8,300 Supplies 4,300 Retained Earnings 1,100 Utilities Expense 5,000

187)

How many of these accounts would appear in a year-end balance sheet?

A) Five.                                     B) Four.                                    C) Two.                                                  D) Three.

188. Of the following, the most important objective for financial accounting is to provide information useful for:
     1. Predicting cash flows.                                                          B) Determining taxable income.

C) Providing accountability.                                                      D) Increasing future profits.

189. For a journal entry with only two lines, the following entry is valid: Decrease in Owners' Equity, Increase in Expense.
     1. True                                                                                      B) False

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

210. Which is true about the Cash Flow Statement?
211. 1. It shows all significant changes to the company, including noncash items
     2. It only shows items that are cash flows to the firm.
212. In an installment loan
     1. later payments pay the same principal as earlier payments
     2. later payments pay less principal than earlier payments
     3. later payments pay more principal than earlier payments
     4. it depends on the interest rate

Answer 1