1. Which of the following descriptions is true of sales tax payable? a.) Sales tax is a percentage of sales owed to the state collected from the customer by the company and paid to the government by the company. b.) Sales is the amount owed to the state collected from the customer by the company and paid to the government by the company. c.) Sales is the amount owed to the company collected from the customer by the company. d.) Sales tax is a percentage of income owed to the state collected from the customer by the company. 2. Tori secured a two-month loan at an interest rate of 2.9% and borrowed $15,000 to purchase a refrigerator. When the loan matures, Tori will pay ________ in interest to the bank. a.) $261.00 b.) $87.00 c.) $72.50 d.) $52.20 3. Which of the following descriptions corresponds with ratio analysis? a.) This evaluates financial statements for two or more periods. b.) Item can be expressed as a percentage of total assets. c.) This is used to calculate rate of return on sales. d.) Owner's equity and liabilities are used in calculations. 4. Which of the following scenarios is an operating activity? a.) The Shear Talent paid the bank $750 toward the principle of the mortgage loan. b.) The Burger Place currently has a $1,800 credit on their account with their food supplier. c.) Pat received $900 in cash paid to him as an owner drawing. d.) The Tasty Treat recorded $2,500 in expenses last quarter. 5. The ending cash balance on the Statement of Cash Flows should be equal to the balance of the cash account listed on the __________. a.) statement of operating activities b.) balance sheet c.) income statement d.) statement of changes in owner's equity 6. Paperclips has just acquired Office Space, so Ned wanted to inform the employees that they were no longer Office Space employees but Paperclips employees. As new Paperclips employees, Ned also wanted to make sure that everyone was familiar with the internal controls he employs. Each employee was given an employee handbook, which included Paperclips' Mission Statement, in order to educate the new employees about the merged company's policies and procedures. Which of the following internal control systems is being used in this scenario? a.) Monitoring processes b.) Risk assessment c.) Control activities d.) Control environment