1. Cumulative profits of a company that haven't been paid out to shareholders in the form of dividends are called

a) Retained Earnings b) Non taxable Income c) Dividends declared but not yet paid d)Taxable Income

2. Trial Balance has $600,000 total credits and $599,000 total debits, what is the correct course of action?

a) The difference is not material and therefore you can just charge $1000 to an expense account.

b) Best to start all over again

c) It is not material difference - there is no problem

d) Check the posting of your adjusting entries for an error

3. During its first year of operations, a company received $100,000 from investors, had revenues of $350,000 and expenses of $75,000. What is income before ta would report on its income statement?

4. A company issued 5,000 shares to an investor in return for $100,000. The shares are now worth $250,000. What journal entry should the company make based on this information?

a) No entry required b) Dr Cash $150,000 and Cr Share Capital $150,000 c) No Entry required until the end of the fiscal year d) Dr Shareholders Equity $150,000 and Cr Share Capital $150,000.

5. The following information is provided by a company; income available to common shareholders $150,000; weighted average number of shares outstanding dring the year 50,000 and share price is $30.00. The company's Basic EPS and P/E ratio would be...

a) 3 and $10

b) $0.33 and 10%

c) $3.00 and 10

d) 5,000 and 10%

6. Listing for assets on the balance sheet are generally in the following order

highest to lowest liquidity?