1.Earning revenue journal entry is recorded as:

a.Increases assets, decreases stockholders liabilities

b.Decreases assets, increases liabilities

c.Increases assets, increases stockholders equity

d.Increases one asset, decrease another assets

A chart of accounts is:

a.usually listed in the order in which they appear in financial statement.

b.Usually a listing of accounts in alphabetical order

c.The same as a balance sheet

d.One of the four financial statements.

Isaac Co. sells merchandise on credit to Sonar Co in the amount of $5,700. The invoice is dated on April 1 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? (3 points)

a.$57, April 16

b.$114, April 15

c.$57, April 15

d.$114, April 16

19. A new account on the multi-step income statement for a merchandiser uses which of the following as an expense when selling inventory?

a. wages expense

b. merchandise inventory

c. cost of goods sold

d. copyright

20. The Crafter Company has the following assets and liabilities (3 points):

ASSETS
Cash	$28,000
Accounts receivable	15,000
Inventory	20,000
Equipment	50,000
LIABILITIES
Current portion of long-term debt	10,000
Accounts payable	2,000
Long-term debt	25,000

Determine the current ratio (rounded to one decimal point).

3.6

2.3

3.3

5.3

21. Roo Company has 20,000 shares of $100 par, 2% preferred stock. Calculate the preferred stock dividends should be issued. (3 points)

A. 40,000

B. 20,000

C. 10,000

D. 15,000

22. Dec 10, 2016, ARSC Inc. sold merchandise on account to customer of $12,000 with terms 2/10, net 30. On Dec 15, 2016, the customer took the discount and paid to ARSC. How much payment ARSC should receive? (3 points)

a.12,000

b.11,760

c.11,700

d.9,600