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100
The process of spreading the cost of a fixed asset over the asset's useful life is called _____. expensing; depreciation; apportioning; crediting; distributing
What is depreciation?
100
All of the following except which are classified as fixed assets? factory equipment; a company car; computers held for resale; property; buildings
What is computers held for resale?
100
Since furniture and store equipment for Rosalind's Boutique will be held or used for a period longer than one year, they are considered _____. fixed assets; owners' equity; revenue; current assets; prepaid expenses
What is fixed assets?
100
Patents and copyrights confer value on a firm but do not exist physically. Thus, they are identified as_____. current assets; prepaid expenses; fixed assets; intangible assets; owners' equity
What is intangible assets?
100
The value of a firm's reputation, location, earning capacity, and other intangibles that make the business profitable is called its _____. good character; franchise; goodwill; distinction; prestige
What is goodwill?
200
The debts of a business that will be paid in one year or less are called its _____. current liabilities; expenses; prepaid expenses; current assets; long-term liabilities
What is current liabilites?
200
Extreme Sports, a bicycle, ATV, and motorbike retailer, buys its inventory on credit. Before Extreme pays for this merchandise in 60 days, the money owed is classified on its balance sheet as a(n) _____. current asset; intangible asset; account payable; long-term liability; account receivable
What is account payable?
200
Salaries payable, accounts payable, and taxes payable are examples of _____. expenses; current liabilities; current assets; long-term liabilities; owners' equity
What is current liabilities?
200
Debts that need not be repaid for at least one year are referred to as _____. expenses; current assets; long-term liabilities; fixed assets; current liabilities
What is long-term liabilities?
200
The mortgage on Prudential Insurance's local facility will be paid off over the next 30 years. The majority of this mortgage would be classified on Prudential's balance sheet as a(n) _____. current asset; current liability; long-term asset; long-term liability; account payable
What is long-term liability?
300
A firm has $260,000 in assets and $158,000 in stockholders' equity. It owes $55,000 from a long-term loan, and this is its only long-term liability. This firm has ____ in total current liabilities. $55,000; $103,000; $47,000; $102,000; $213,000
What is $47,000?
300
Rick and Joe get together and start a mortgage brokerage business. They each contribute $25,000 of capital to the business. After the first year of operation, the total owners' equity is listed as $60,000. Most likely, the additional $10,000 of owners' equity is _____. common stock; long-term liabilities; current liabilities; retained earnings; a bank loan
What is retained earnings?
300
Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding. The value of the stock is shown as $20 per share. In addition, $100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity? $300,000; $200,000; $100,000; $2,000,000; $100,020
What is $300,000?
300
All American National Company earned $240,000 last year. The board of directors decided to pay out one-half of the firm's earnings to the stockholders. Before the board's decision, the firm's retained earnings were $740,000. Which of the following statements is true? Each shareholder will receive more than he or she received last year; The firm's retained earnings are too high; The value of the firm's retained earnings is now $860,000; The value of the firm's retained earnings is now $620,000; The firm should be more profitable.
What is the value of the firm's retained earnings is now $860,000?
300
As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance sheet: total assets$124,000; current liabilities$41,000; long-term liabilities$13,000. What is the total owners' equity for this company? $178,000; $165,000; $137,000; $70,000; $0
What is $70,000?
400
A(n) ____ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year. income statement; balance sheet; capital statement; statement of financial position; statement of owners' equity
What is income statement?
400
Beginning inventory plus net purchases minus ending inventory equals _____. cost of goods sold; gross profit on sales; total revenue; the balance of merchandise inventory; net income before sales
What is cost of goods sold?
400
Ruin Company's net sales for the period were $175,000. Its cost of goods sold was $85,000. What is this firm's gross profit on sales? $175,000; $135,000; $125,000; $100,000; $90,000
What is $90,000?
400
APSCO Lighting, Inc., had a gross profit of $234,000 for the last twelve-month period. Operating expenses were $185,000. What was APSCO's net income before taxes? $490,000; $234,000; $185,000; $49,000; $41,000
What is $49,000?
400
For the previous year, Sambino's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues. Sambino's had a net income of $325,000 for the year; had a net loss of $25,000 for the year; lost $25,000 in revenues; acquired an additional $295,000 in assets; increased its stockholders' equity by $25,000.
What is had a net loss of $25,000 for the year?
500
Wallace Plumbing Company had income from operations of $110,000. It paid federal income taxes of $26,000. What was the firm's net income after taxes? $144,000; $98,000; $84,000; $22,000; $12,000
What is $84,000?
500
The ratio obtained by dividing net income after taxes by net sales is the _____. return on sales ratio; acid-test ratio; return on equity ratio; earnings per share; working capital
What is return on sales ratio?
500
The financial ratio obtained by dividing net income after taxes by owners' equity is called the _____. earnings per share; return on sales; acid-test ratio; working capital; return on owners' equity
What is return on owners' equity?
500
Mirror Emporium's sole owner, Fred Martin, is happy about his $100,000 profit. However, while he knows that the firm is profitable, he wants to know how effectively his investment is being used. What computation would you recommend? return on sales; earnings per share; return on owners' equity; current ratio; activity ratios
What is return on owner's equity?
500
The financial ratio obtained by dividing net income after taxes by the number of shares of common stock outstanding is the _____. working capital; return on owners' equity; current ratio; earnings per share; return on sales ratio
What is earnings per share?
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