1) Sarbanes Oxley (SOX) demands that companies safeguard inventory and properly
report it. List methods that companies should use to safeguard inventory and accounting
procedures that should be used to properly report inventory.
2) Congress passed the ______________________ to help curb financial abuses at
companies that issue their stock to the public.
3) There are at least three types of partnerships that limit the partners’ liability. They are
1) _______________________, 2) __________________, and 3)
______________________.
4) Bonds issued in the names and addresses of their holders are
____________________ bonds.
5) A company purchased mining property for $1,560,000. The property was estimated
to contain 13,000,000 tons of ore. In the current year, the company removed and sold
247,000 tons of ore. Calculate the depletion expense for the current year.
6) The reporting of investing and financing activities is _________________ under the
direct and indirect methods of preparing the statement of cash flows.
7) A corporation paid a cash dividend of $0.07 per share during the current year. It had
550,000 common shares outstanding at year-end, its current year earnings per share was
$3.85, and the stock’s year-end market price was $17.50 per share. Calculate the
company’s dividend yield.