11.The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is:

$6.38

$10.00

$6.00

$7.50

12.Which of the following are stockholder equity accounts?

Common Stock

Retained Earnings

Additional Paid-In Capital

All of the above

13.Franklin co purchased machinery at a cost of $44,000 on January 1, 2020. The expected useful life is 5 years and the asset is expected to have salvage value of $4,000. Moped depreciates its assets using the double-declining balance method. The accumulated depreciation for this asset on December 31, 2021 is

$10,560

$8,800

$28,160

$17,600

14.The price/earnings ratio:

is a measure of the relative expensiveness of a firm's common stock.

does not usually change by more than 1.0 (e.g., 8.2 to 9.2) during the year.

can be used to determine the cash dividend to be received during the year.

is calculated by dividing the earnings multiple by net income.

15.When a machine having a net book value of $15,000 is sold for $12,000 current assets increase, equipment (net) decreases, and net income decreases.

True

False

16.The current assets of most companies are usually made up of:

a very small proportion (less than 10%) of the total assets of the entity.

assets that are currently used in the operations of the company.

cash, marketable securities, and accounts and notes receivable.

cash and assets expected to be converted to cash within a year.

17.When a corporation has both common stock and preferred stock outstanding dividends on preferred stock must be paid before dividends on common stock can be paid.

True

False

18.The payment of a current liability will not impact working capital

True

False

19.Which of the following is not a category of financial statement ratios?

Financial leverage.

Liquidity.

Profitability.

Marketability.

20.An account receivable results from the sale of property, plant and equipment for cash.

True

False