1. In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier?

A: a supplier invoice, a bill of lading, and the supplier's financial statements

B:a purchase order, a journal entry, and a price catalog

C: a journal entry, a supplier invoice, and a description of the goods being purchased

D: a receiving report, and invoice, and a purchase order

2. Revival Corporation's annual report is follows:

Net income:

March 31, 2014: $358,000

March 31, 2015: $438,500

Preferred Dividends:

March 31, 2014: 0

March 31, 2015: 0

Total Stockholder's Equity:

March 31, 2014: $4,350,000

March 31, 2015: $5,262,000

Stockholders' Equity attributable to Preferred:

March 31, 2014: (blank)

March 31, 2015: (blank)

Stock:

March 31, 2014: 0

March 31, 2015: 0

Number of Common Shares outstanding

March 31, 2014: 291,000

March 31, 2015: 200,000

Based on the information provided, find the rate of return on common stockholders' equity on March 31, 2015

A: 90.82%

B: 9.12%

C: 8.33%

D: 8.23%

3. Saran Digital Inc. starts the year with $3,200 in its Estimated Warranty Payable account. During the year, there was $230,000 of sales and $4,800 of warranty repair payments. Saran Digital estimates warranty expense at 2% of sales. Ar the end of the year, what is the balance in the Estimated Warranty Payable account?

A: $4,800 credit

B: $3,200 debit

C: $4,600 debit

D: #3,000 credit

4. Which of the following best describes restrictions on cash dividends and treasury stock purchases?

A: restrictions on cash payments that are made to ensure higher reported profits

B: limits that are established to boost sales revenues

C: limits required by lenders or creditors to ensure that the company maintains adequate levels of equity

D; restrictions on payments made by the shareholders to lower federal income tax expense

5. On November 1, 2015, EZ Products borrowed $52,000 on a 7%, 8 - year note with annual installment payments of $4,160 plus interest due on November 1 of each succeeding year .On November 1, 2016, what will the balance be in the Long - Term Notes Payable account?

A: $43,680

B: $52,000

C: $47,840

D $4,160

6. Which of the following statements is true?

A: No journal entries are needed to either appropriate or restrict retained earnings

B: Appropriations of retained earnings require journal entries, but restriction on retained earnings do not.

C: Restriction on retained earnings must be journalized, but appropriations do not need to be journalized.

D: Both appropriations and restrictions of retained earnings require journal entries.

7. A business purchases equipment by paying $5,307 in cash and issuing a note payable of $17,553. Which of the following occurs?

A: Cash is credited for $5,307, Equipment is debited for $22,860, and Notes Payable is credited for $17,553.

B: Cash is debited for $5,307, Equipment is debited for $17,553, and Notes Payable is credited for $22,860.

C: Cash is debited for $5,307, Equipment is credited for $17,55, and Notes Payable is debited for $12,246

D: Cash is credited for $5,307, Equipment is credited for $22,860, and Notes Payable is debited for $17,553.

8. A $40,000 four - month 6.5% not payable was issued on October 1, 2015. Which of the following would be included in the journal entry required on the note's maturity date by the borrower?

A: a debit to Interest payable for $217

B: a credit to Cash for $40,000

C: a debit to Interest expense for $217

D: a credit to Note payable for $40,867

9. What is the effect of the adjusting entry for Depreciation Expense?

A: It decreases total liabilities and increases total expenses.

B: It increases total assets and increases total expenses

C: It increases total liabilities and increases total expenses

D: It decreases total assets and increases total expenses

10. Peace of Mind provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Peace of Mind has collected $900 from cash-paying customers. Peace of Mind's remaining customers owe the business $1,300.

How much service revenue would Peace of Mind have for the year under the

a. cash basis?

b. accrual basis?

A: Under the cash basis, Peace of Mind will record $________ of service revenue for the year

B: Under the accrual basis, Peace of Mind will record $_________ of service revenue for the year