1-If there is a difference between in the balance of Marketable Securities and their current market value, which account should be used for adjustment? ________________________

2-_________________ is used as starting item in preparation of the cash flows statement by indirect method?

3- Which ratio is used to measure liquidity of a company? _________________________. 4-. Operating Income/Average Total Assets is used to measure ___________________. 5-. Net Income/Average shares of outstanding capital gives following.

a. Earnings per share b. Return on Equity c. Return on Asset d. Dividend yield

6-. On 31 December 2015, ABC corporations credit balance of income summary account is $2,000,000. Tax rate is 20 % and company must allocate 5% of legal reserves. How much legal reserves will be added to shareholders equity? _________________________________ 7-. According to information given in question 34, which of the following accounting treatment is correct?

a. Tax payable is debit $400.000 b. Income summary is debit $1.600.000 c. Retained earnings is credit 1.520.000 d. Income summary is credit $ 1.600.000