Question 1
1 out of 1 points
________ are normally classified as a current liability on the balance sheet.
Prepaid expenses
Land
Inventories
Accounts payable
Question 2
1 out of 1 points
may produce a positive balance in retained earnings
will restate retained earnings to zero.
should appear on the income statement as part of continuing operations
requires the approval of a bankruptcy court
Question 3
1 out of 1 points
If the Investor Company owns 20% of the stock of Investee Company and Investee Company reports profits of $100,000, then Investor Company reports equity income of:
$80,000
$20,000
$40,000
$60,000
Question 4
1 out of 1 points
Which of the following is seldomly a preferred stock characteristic?
voting rights
call ability by the issuer
accumulation of dividends
preference in liquidation
Preferred stock does have :
Preference as to dividends
Accumulation of dividends
Participation in excess of stated dividend rate
Convertibility into common stock
Callability by the corporation
Redemption at future maturity date ( see the previous discussion of redeemable preferred stock)
Preference in liquidation
Question 5
1 out of 1 points
Gross profit is the difference between:
net income and operating income
revenues and expenses
sales and cost of goods sold
gross sales and sales discounts
Question 6
1 out of 1 points
Employee Stock Ownership Plans (ESOPs):
will not dilute the proportional ownership of existing shareholders.
may be created for a temporary purpose.
do not produce any tax advantages for plan participants.
may borrow funds from a bank.
Question 7
1 out of 1 points
Which of the following will be disclosed in the reconciliation of retained earnings?
net income / net loss
adjustment for an error of a prior period
dividends
all of the answers are
Question 8
1 out of 1 points
Which of the following would be classified as an extraordinary item on the income statement?
loss on disposal of a segment of business
a sale of land
loss on disposal of a segment of business
a loss from a flood in a location that would not be expected to flood
Question 9
1 out of 1 points
________ is considered a tangible asset.
Equipment
A patent
A copyright
Goodwill
Question 10
0 out of 1 points
The following relate to Data Original in 2008. What is the ending inventory?
Purchases
$540,000
Beginning Inventory
80,000
Customer Returns
10,000
Sales
800,000
Cost of Goods Sold
490,000
a.
$120,000
b.
$140,000
c.
$210,000
d.
$260,000
