Question
26. A company's income before interest expense and income taxes is $100,000 and its interest expense is $50,000. Its times interest earned ratio is: 0.50
26. A company's income before interest expense and income taxes is $100,000 and its interest expense is $50,000. Its times interest earned ratio is:
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0.50
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1.50
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2.00
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1.00
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0.70
27. A registrar keeps stockholder records and prepares official lists of stockholders and dividend payments.
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true of false
29.Eastline Corporation had 16,500 shares of $5 par value common stock outstanding when the board of directors declared a stock dividend of 5,445 shares. At the time of the stock dividend, the market value per share was $15. The entry to record this dividend is:
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No entry is needed.
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Debit Retained Earnings $27,225; credit Common Stock Dividend Distributable $27,225.
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Debit Common Stock Dividend Distributable $81,675; credit Retained Earnings $81,675.
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Debit Retained Earnings $81,675; credit Common Stock Dividend Distributable $81,675.
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Debit Retained Earnings $81,675; credit Common Stock Dividend Distributable $27,225; credit Paid-In Capital in Excess of Par Value, Common Stock $54,450.
31. Peavey Enterprises purchased a depreciable asset for $22,000 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,000, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of:
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$10,000
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$5,000
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$5,500
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$20,000
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$9,250
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-
39 -The amount due on the maturity date of a $11,200, 90-day 7%, note receivable is: (Use 360 days a year.)
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$11,396.
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$11,200.
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$10,416.
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$11,984.
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$11,004.
40-A company had average total assets of $937,000. Its gross sales were $1,099,000 and its net sales were $960,000. The company's total asset turnover equals:
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1.14.
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1.02.
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0.98.
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0.85.
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1.17.
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