1) the current ratio is a
a.liquidity ratio
b.profitability ratio
c.long-term solvency ratio
d.cash flow ratio
2) courtney company purchased equipment for $1,800 cash. as a result of this event,
a.equity decreased by $1,800.
b.assets increased by $1,800.
c.total assets remained unchanged.
d.both assets and equity decreased by $1,800.
3) using the indirect method, patent amortization expense for the period
a.is deducted from net income
b.causes cash to increase
c.causes cash to decrease
d.is added to net income
4) on january 1, 2011, asianic inc. issued 10-year bonds with a face amount of
20,000,000 and a contract rate of 8% payable annually on january 1. the
effective-interest rate on the bonds is 10%. present value factors are as follows:
total issue price of the bonds was
a.20,000,000
b.19,600,000
c.18,400,000
d.17,552,000
5) the factor 1.08160 is taken from the 4% column and 2 periods row in a certain table.
from what table is this factor taken?
a.future value of 1
b.future value of an annuity of 1
c.present value of 1
d.present value of an annuity of 1
6) hagen company had these transactions pertaining to stock investments
feb. 1purchased 2,500 shares of farley company (10%) for $41,500 cash plus brokerage
fees of $1,000.
june 1received cash dividends of $2 per share on farley stock.
oct. 1sold 1,000 shares of farley stock for $20,000 less brokerage fees of $500.
dec. 1received cash dividends of $2 per share on farley stock.
the entry to record the receipt of the dividends june 1 would include a
a.debit to stock investments of $5,000
b.credit to dividend revenue of $5,000
c.debit to dividend revenue of $5,000
d.credit to the stock investments of $5,000
7) (a) what are the phases of the corporate life cycle?
(b) what effect does each phase have on the numbers reported in a statement of cash
flows?
8) which of the following would probably be the most significant type of a claim held
by a company?
a.notes receivable
b.non-trade receivables
c.accounts receivable
d.interest receivable
9) classic floors has the following inventory data:
assuming that a perpetual inventory system is used, what is the value of ending
inventory on a lifo basis for july?
a.$620.80
b.$936.00
c.$315.20
d.$472.80
10) use the following information for boxter, inc., clifford company, danforth industries,
and evans services to answer the question what is danforth’s lifo reserve for 2011?
a.$535
b.$85
c.$42
d.$58