61.

Which of the following is an example of a current liability?

• employee pensions
• payments on the company car
• mortgage payments
• sales taxes

62.

Bill and Maria both own local fast-food restaurants. Bill uses the cash basis accounting method, while Maria uses the accrual basis of accounting. Each recently catered a wedding, for which the customers were billed $3500. Payment on the invoice is due within 15 days. How will this transaction be recorded in their books?

• Bill would not record anything until he received cash in hand; Maria would credit her accounts receivable by $3500 and debit her sales revenue with $3500.
• Bill would credit his accounts receivable by $3500 and debit his sales revenue with $3500; Maria would not record anything until she received cash in hand.
• Bill would not record anything until he received cash in hand; Maria would debit her accounts receivable by $3500 and credit her sales revenue with $3500.
• Bill would debit his accounts receivable by $3500 and credit her sales revenue with $3500; Maria would not record anything until she received cash in hand.

63.

Which of the following statements concerning employee benefits is true?

• Employee bonuses are paid out once a year, regardless of when they are earned.
• The costs of benefits like sick days and bonuses are accounted for when the benefit is earned, not when it is paid.
• Employee vacation days are accounted for only after the employee has taken them.
• Employee sick days do not fall under the category of compensation.

64.

The Sarbanes-Oxley Act of 2002, passed in response to the Enron scandal, mandates all of the following EXCEPT:

• It requires that companies maintain complete transparency and provide public access to all financial statements.
• It requires top-level executives to certify that the company's financial information is accurate.
• It determines which financial records are to be kept, and well as the length of time those records must be kept.
• It increased the severity of the penalties for noncompliance.

65.

You are the owner of a very successful tattoo parlor. Last year your assets totaled $250,000 and $350,000 this year, with net sales of $1,000,000 for the current year. What is your asset turnover ratio?

• 1.67
• .33
• .167
• 3.33