16-Dividends distributed to stockholders should be treated as an expense of the business.

true or false

17-The accrual basis of accounting recognizes revenues when cash is received from customers.

true or false

18-

A company issued 5-year, 10.00% bonds with a par value of $110,000. The market rate when the bonds were issued was 9.50%. The company received $112,315 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is:

• $5,500.00.

• $11,000.00.

• $5,334.96.

• $10,607.00.

• $2,750.00.

• 21-A company's net sales are $837,340, its costs of goods sold are $456,350, and its net income is $116,370. Its gross margin ratio equals

• 45.5%.

• 54.5%.

• 25.5%.

• 31.60%.

• 13.90%.

  24-Required payroll deductions include income taxes, Social Security taxes, pension and health contributions, union dues, and charitable giving.

• true or false

  27- On December 31 of the current year, the unadjusted trial balance of a company using the percent of receivables method to estimate bad debt included the following: Accounts Receivable, debit balance of $97,800; Allowance for Doubtful Accounts, credit balance of $1,021. What amount should be debited to Bad Debts Expense, assuming 3% of outstanding accounts receivable at the end of the current year are estimated to be uncollectible?

• $1,021.

• $1,020.

• $2,934.

• $3,955.

• $1,913.