1. If fixed costs are $900,000 and variable costs are 60% of sales, what is the break-even point in sales dollars

a. 360,000

b. 2,250,000

c. 1,500,000

d. 540,000

2. factors which reflect the ability of a business to earn a reasonable amount of income and pay its debts are referred to as solvency and profitability, respectively.

True or False

3. Under the equity method, the payment of cash dividends on an investment in Ariel Company common stock held by Triton Corporation includes a

a. debit to investment in Ariel Company

b. debit to investment in Triton Corporation

c. credit to investment in Triton Corporation

d. Credit to investment in Ariel Company

4. if bonds are issued at a discount, the coupon interest rate is

a. the same as the market rate of interest.

b. disregarded when recording the journal entry

c. the same as the contract rate of interest.

d. higher than the effective rate of interest.

5.the numerator of the rate earned on common stockholders' equity ratio is equal to

a. income from the operations minus preferred dividends minus interest expense minus income tax expense plus other incom.

b. net income

c. earnings before income taxes minus interest expense minus preferred dividends minus income tax expense

d. income from operations plus other income minus income tax expense minus interest expense

6. The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are:

a. allocate costs to transferred and partially completed units

b. determine the units to be assigned costs

c. determine the cost per equivalent units of production

d. calculate equivalent units of production

7. Free cash flow is cash flow from operations, plus any cash needed to purchase fixed assets to maintain productive capacity and cash used for dividends.

True or False

8. Materials are transferred from the storeroom to the factory in response to receiving reports.

true or false