$2,000,000 in January for office rental fees. Each of their tenants pays four months rental three times a year. Question 4 Payment of a cash dividend that has already been declared increases corporate assets and liabilities. decreases corporate assets and liabilities. increases liabilities and owners' equity. None of the other answers. decreases corporate assets and owners' equity. D Question 5 08 PM Sat Mar 14 Question 6 2 pts The total assets and liabilities at the beginning and end of the year for Tulane Company, a sole proprietorship, are as follows: Liabilities Beginning of the year End of the year Assets $7.000 10,000 $3,000 5,000 Question: Assuming Tulane received no investments in the business and no owner withdrawals occurred, net income for year is: $5,000 $9.000 $1,000 $3.000 Question 7 2 pts 12:00 PM Sat Mar 14 Question 7 2 pts True or False: A zero-coupon bond is a bond issued with a zero-effective (also known as market) interest rate. True False Question 8 CPA's have exclusive authority to o perform audits of the financial statements of publicly held companies. O prepare tax returns for businesses consult on information systems design CPA's have no exclusive authority to perform any services. Question 9 2 pts Question 9 2 pts Payment of cash dividends to stockholders is originally recorded with a None of the other answers. debit to the Retained Earnings and decreases owners' equity. credit to the Retained Earnings account and increases owners' equity. credit to the Retained Earnings account and decreases owners' equity. debit to the Capital Stock account and decreases owners' equity. Question 10 2 pts Successful businesses typically require effective management. a product or service typically sold to customers at a profit capital All of the other answers. 12-09 PM Sat Mar 14 Accrual basis accounting has to do with the timing of revenues only timing of revenues AND timing of cash flows. timing of cash flows only timing of revenues AND timing of expenses. timing of expenses AND timing of cash flows. Question 12 2 pts In a corporation, responsibility for the preparation of the company's financial statements for public use rests with the stockholders. state regulators the external auditor O the board of directors. O management 209 PM Sat Mar 14 The closing of the Utilities Expense account at the end of an accounting period would not require any entry to Utilities Expense. require a credit to Utilities Expense. none of the other answers. require a debit to Utilities Expense. Question 14 2 pts The financial statements interrelate in the sense that the balance sheet shows the results of operations for a period of time, and the income statement presents earnings as of the end of that period. None of the other answers. the income statement reports net income for a period of time, and the related balance sheet portrays the financial position at the end of that period. the balance sheet shows the results of operations for the same time period for which the financial position is shown on the income statement