b. T proide reports to stakeholders about the economic activities and conditions of a business o personally guarantee loans of the business Te provide information for managers to use in operating the business sthe various informational needs of stakeholders and design its accounting system to meet those needs Presently, the dominant body in the development of accounting principles is the a. American Institute of Certified Publie Accountants (AICPA) b. American Accounting Association (AAA) C. Financial Accounting Standards Board (FASB) d. Institute of Management Accountants (IMA) 13. Smith Company purchased $105,000 of computer equipment from Brown Company. Smith equipment using cash that had been obtained from the initial investment by transaction involving the computer equipment should be recorded on the Company paid for the Connie Smith. The accounting records of which of the following entities? a. Smith Company and Connie Smith's personal records b. Brown Company and Connie Smith's personal records c. Brown Company d. Smith Company and Brown Company 14. Advertising Company, as part of a previous investment. John Williams owns stock in the Indoor ecenthy, John was paid $18,000 in the form of cash dividends from Indoor Advertising, and he 10,000, in his name, to the Red Cross. The contribution of the $10,000 should be recorde a. Indoor Advertising and the Red Cross b. John William's personal records and the Red Cross c. John William's personal records and Indoor Advertising d. John William's personal records, Indoor Advertising, and the Red Cross d on the accounting records of which of the following entities? 15. Which of the following is not an asset? a. Investments b. Cash c. Inventory Stockholders' Equity 16. Which of the following is not a business transaction? a. make a sales offer b. sell goods for cash c. receive cash for services to be rendered later d. pay for an investment 17. Revenues are reported when a. a contract is signed during an investment b. cash is received from the customer work is begun on the job c. d. work is completed on the job For 2008, net income is $250,000, shares outstanding are 80,000, and the market price is $24. What is the price-earnings ratio on common stock (round to one decimal point?) a. 3.1 b. 7.7 18. . 34.9 d. 2.5