7.) A company receives $200, of which $8 is for sales tax and $12 is for excise tax. The journal entry to record the sale is:

	a.	Cash 200 Sales Tax Payable 8 Excise Tax Payable 12 Sales 180
	b.	Cash 180 Sales 180
	c.	Sales 200 Cash 200
	d.	Excise Tax Expense 12 Sales Tax Expense 8 Cash 180 Sales 200

8.)

During May, Phone Mart sold 150 iPhones for $200 each. Each iPhone had cost Phone Mart $108 to purchase and carried a one-year warranty. If 4 percent typically need to be replaced over the warranty period and two actually are replaced during May, the entry to record the Product Warranty Expense is

	a.	Product Warranty Expense 648 Estimated Product Warranty Liability 648
	b.	Product Warranty Expense 648 Cash 648
	c.	Product Warranty Expense 3,000 Cash 3,000
	d.	Product Warranty Expense 216 Estimated Product Warranty Liability 216

Assume that on December 1, a $6,000, 90-day, 10 percent note receivable was received from a customer as an extension of his past-due account. The entry that would be made to record the note is:

	a.	Notes Receivable 6,000 Interest Income 6,000
	b.	Notes Receivable 6,000 Cash 6,000
	c.	Notes Receivable 6,000 Accounts Receivable 6,000
	d.	Cash 6,000 Accounts Receivable 6,000

10.)

Which of the following sets of documents are in the correct sequence?

	a.	Purchase requisition, purchase order, invoice
	b.	Purchase order, purchase requisition, invoice
	c.	Purchase order, check, receiving report
	d.	Purchase requisition, receiving report, purchase order

Before a check authorization is issued, the following documents must be in agreement, except for the

	a.	invoice.
	b.	receiving report.
	c.	remittance advice.
	d.	purchase order

12.) Which of the following classifications represents the largest number of shares?

	a.	Treasury shares.
	b.	Outstanding shares.
	c.	Authorized shares.
	d.	Issued shares.

13.)

A corporation has all of the following except

	a.	its own tax liability.
	b.	separation of ownership and control.
	c.	a limited existence.
	d.	government regulations.

14.)

Which of the following is the proper formula for computing free cash flow?

	a.	= Net Cash Flows from Operating Activities - Dividends - Purchases of Plant Assets + Sales of Plant Assets
	b.	= Net Cash Flows from Financing Activities + Sales of Plant Assets - Dividends
	c.	= Net Cash Flows from Investing, Financing, and Operating Activities - Purchases of Plant Assets + Sales of Plant Assets
	d.	= Net Cash Flows from Investing Activities - Purchases of Plant Assets

15.)

Cielo Corporation had net income of $740,000 in 20x4 and $830,000 in 20x5. Total stockholders