39.
Which of the following is an objective of the external audit of a company’s financial
statements?
40.
Which of the following is not included as a primary part of the financial disclosure in Form 10–
K?
41.
The Statement of Comprehensive Income includes items in which order?
42.
Which of the following would not be classified as a current asset?
43.
Information disclosed in a balance sheet about shares of common stock includes the number
of shares that are:
44.
Stockholders’ equity, also called shareholders’ equity, includes which of the following two
accounts?
45.
Components of other comprehensive income can be reported in combination with the:
46.
Panmar Inc. is preparing a statement of stockholders’ equity for 2016. On January 1, 2016,
Panmar started the year with a $200,000 credit balance in its retained earnings account.
During 2016, the company earned net income of $140,000. Panmar declared dividends of
$80,000 and paid $50,000 of those dividends. Also, the company received cash of $100,000 for
additional shares of common stock issued and then paid $30,000 to repurchase shares of
common stock. What is the balance in retained earnings on December 31, 2016?
47.
Denmark Inc. is preparing a statement of stockholders’ equity for 2016. On January 1, 2016,
Denmark started the year with a $100,000 credit balance in its retained earnings account.
During 2016, the company earned net income of $70,000 and declared dividends of $10,000.
Also, the company received cash of $15,000 as an additional investment by its owners. What
is the balance in retained earnings on December 31, 2016?
48.
Which of the following is true about gross profit (gross margin)?
49.
Which of the following best describes operating income?
50.
The Callie Company has provided the following information:
Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie’s gross profit?
51.
The Callie Company has provided the following information:
Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie’s income from operations (operating income)?
52.
The Callie Company has provided the following information:
Operating expenses were $231,000;
Cost of goods sold was $376,000;
Net sales were $940,000;
Interest expense was $32,000;
Gain on sale of a building was $76,000;
Income tax expense was $151,000.
What was Callie’s income before taxes?
53.
Kryton Corp. has provided the following information:
Gross profit was $620,000;
Cost of goods sold was $380,000;
Net income was $400,000.
What was Kryton’s gross profit percentage?
54.
Brimmel Corp. has provided the following information:
Sales were $780,000;
Cost of goods sold was $429,000;
Net income was $195,000.
What was Brimmel’s gross profit percentage?
55.
Which of the following is not reported as an operating expense on the income statement?
56.
The Nellie Company has provided the following information:
Operating expenses were $115,000;
Gross profit was $629,000;
Cost of goods sold was $470,000;
Interest expense was $17,000;
Income tax expense was $199,000.
What was Nellie’s operating income?
57.
The Nellie Company has provided the following information:
Operating expenses were $115,000;
Gross profit was $629,000;
Cost of goods sold was $470,000;
Interest expense was $17,000;
Income tax expense was $199,000.
What was Nellie’s income before taxes?
58.
The Willie Company has provided the following information:
Operating expenses were $345,000;
Income from operations was $415,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Loss from sale of investments was $87,000;
Income tax expense was $58,000.
What was Willie’s gross profit?
59.
The Willie Company has provided the following information:
Operating expenses were $345,000;
Income from operations was $415,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Loss from sale of investments was $87,000;
Income tax expense was $58,000.
What was Willie’s income before taxes?
60.
The Willie Company has provided the following information:
Operating expenses were $345,000;
Income from operations was $415,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Loss from sale of investments was $87,000;
Income tax expense was $58,000.
What was Willie’s nonoperating income (expense)?
61.
The Willie Company has provided the following information:
Operating expenses were $345,000;
Income from operations was $415,000;
Net sales were $1,100,000;
Interest expense was $71,000;
Loss from sale of investments was $87,000;
Income tax expense was $58,000.
What was Willie’s net income?
62.
Which of the following would not be used to calculate income from operations?
63.
Which of the following statements regarding earnings per share is false?
64.
Which of the following would not typically be disclosed in the notes to the financial
statements?
65.
Examples of nonoperating items that would appear on an income statement are: