A company reported gross profit of $79,000, total operating expenses of $42,500 and interest income of $2,400. What is the income from operations?

Multiple Choice

Top of Form

$36,500

$38,900

$31,700

$34,100

Bottom of Form

The Supplies account has a trial balance of $3,306. A year-end inventory shows $1,768 worth of supplies left at the end of the year. The correct adjusting entry is:

Multiple Choice

Top of Form

debit Supplies Expense $1,538; credit Supplies $1,538

debit Supplies $1,538; credit Supplies Expense $1,538

debit Supplies Expense $3,306; credit Supplies $3,306

debit Supplies Expense $1,768; credit Prepaid Supplies $1,768

Bottom of Form

The journal entry to record the purchase on account of $1,070 of merchandise with freight of $150 prepaid and added to the invoice is

Multiple Choice

Top of Form

debit Purchases $1,220; credit Accounts Payable $1,220.

debit Accounts Receivable $1,220; credit Sales $1,220.

debit Purchases $1,070, debit Freight In $150; credit Accounts Payable $1,220.

debit Accounts Payable $1,220, debit Freight in $150; credit Purchases $1,070.

Bottom of Form

Roberto Inc. reports the following:

Current assets, $200,000

Total assets, $300,000

Current liabilities, $160,000

Long-term liabilities, $20,000

Owner's equity, $120,000

What is Roberto Inc.'s current ratio, rounded to two decimal places?

Multiple Choice

10.00

1.25

1.88

1.11

On January 2, 2016, a firm purchased equipment for $7,500. Depreciation expense for the year ending December 31, 2016, given the straight-line method, a 5-year useful life, and a salvage value of $1,300, is

Multiple Choice

Top of Form

$1,500.

$1,300.

$1,040.

$1,240.

Bottom of Form