$5.$ Which of the following properly completes this equation: $$net sales $($or$,$ net revenue$)$ COGS $=$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

a$.$ Gross profit

b$.$ Operating profit

c$.$ Addition to retained earnings

d$.$ Depreciation

e$.$ None of the accounts listed above properly complete this equation.

$6.$ Which of the following properly completes this equation: $$Gross fixed assets $$ accumulated depreciation $=$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

a$.$ Net sales

b$.$ Accounts receivable, net

c$.$ Net fixed assets

d$.$ Gross profit

e$.$ None of the accounts listed above properly complete this equation.

$2$

$7.$ For a year in which a company does not sell any long term $($i$.$e$.,$ fixed$)$ assets, which of the following properly

completes this equation: $$accumulated depreciation in $2023$ accumulated depreciation in $2022=$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_?$

a$.$ Depreciation expense on the $2022$ income statement

b$.$ Retained earnings on the $2022$ balance sheet

c$.$ Depreciation expense on the $2023$ income statement

d$.$ Retained earnings on the $2023$ balance sheet

e$.$ None of the accounts listed above properly complete this equation.

$8.8.$ Ashley$$s Accessory Shop started the year with total assets of $$210,000$ and total liabilities of $$120,000.$

During the year the business recorded $$330,000$ in revenues, $$240,000$ in total expenses $($including interest

and taxes$),$ and dividends of $$60,000.$ The net income reported by Ashley$$s Accessory Shop for the year was:

a$.$ $$90,000.$

b$.$ $$150,000.$

c$.$ $$105,000.$

d$.$ $$156,000.$

e$.$ None of the answers listed above are within $$1,000$ of the correct answer.

$9.$ On the company$$s December $31,2020$ balance sheet, Elena$$s Store had a balance in its retained earnings

account of $$100,000.$ During the year Elena$$s Store had revenues of $$80,000$ and total expenses $($including

interest and taxes$)$ of $$45,000.$ In addition, the business paid cash dividends of $$20,000.$ What is the balance

in Retained Earnings on December $31,2021$ for Elena$$s Store?

a$.$ $$155,000$

b$.$ $$115,000$

c$.$ $$135,000$

d$.$ $$100,000$

e$.$ None of the answers listed above are within $$1,000$ of the correct answer.

$10.$ Cash on a company$$s balance sheet is:

a$.$ A current asset.

b$.$ A current liability.

c$.$ A long$-$term asset.

d$.$ A component of shareholder$$s equity.

e$.$ None of the above.

$11.$ Change in dividends paid is:

a$.$ An account on an income statement.

b$.$ An asset account on a balance sheet.

c$.$ A liability account on a balance sheet.

d$.$ An equity account on a balance sheet.

e$.$ None of the above.

$12.$ To repot how your business performed during a period of time, you would report revenues and expenses in

the

a$.$ balance sheet.

b$.$ statement of cash flows.

c$.$ retained earnings statement.

d$.$ income statement.

e$.$ ongoing business statement.

$3$

$13.$ Notes payable is:

a$.$ An account on an income statement.

b$.$ An asset account on a balance sheet.

c$.$ A liability account on a balance sheet.

d$.$ An equity account on a balance sheet.

e$.$ None of the above.

$14.$ Capital surplus is:

a$.$ An account on an income statement.

b$.$ An asset account on a balance sheet.

c$.$ A liability account on a balance sheet.

d$.$ An equity account on a balance sheet.

e$.$ None of the above.

$15.$ Sammy's Shovels had sales of $$2,420,000$ in $2022.$ The cost of goods sold was $$1,462,000,$ operating expenses

$($excluding depreciation$)$ were $$562,000,$ interest expenses were $$26,000,$ depreciation expense was $$14,000,$

and dividends paid were $$9,000.$ The firm's tax rate is $20$ percent. What did Sammy's Shovels report as net

income $($or$,$ net profit$)$ in $2022?$

a$.$ $$248\mathrm{.}600$

b$.$ $$246\mathrm{.}300$

c$.$ $$284,800$

d$.$ $$275,800$

e$.$ None of the answers in this list are correct.