1). The principal revenue source for a bank typically is:

		gain on sale of real estate
		sales
		dividend income
		interest income
		interest expense

2). Which of the following is not a type of earning asset for a bank?

		cash
		loans
		leases
		investment securities
		money market assets

3). A company's gross profit percentage may increase dramatically:

		if the management understates the cost of goods sold to manipulate gross profit
		this may indicate fraud
		if the management overrstates the cost of goods sold
		choices 1 & 2
		choices 2 & 3

4). Operating assets equals:

		cash, accounts receivable, and equipment
		current assets plus tangible assets
		total assets minus intangible assets
		only long-term assets
		only current assets

5). Which of the following is not a reporting requirement on interim reports?

		seasonal information
		major changes in income tax provision
		full, although condensed, balance sheet
		earnings per share
		significant changes in financial position

6). Which of the following could cause return on assets to decline when net profit margin is increasing?

		sale of investments at year-end
		increased turnover of operating assets
		decline in book value
		a stock split
		purchase of a new building at year-end