Choose the best answer

1- How many of the following items are found on the balance sheet, rather than the income statement?

Accounts receivable

Retained earnings

Income tax expense Accrued expenses

Cash

Selling and administrative expenses

Plant and equipment

Operating expense

Marketable securities

Interest expense

a.Three of these items are found on the balance sheet.

b.Four of these items are found on the balance sheet.

c.Five of these items are found on the balance sheet.

d.Six of these items are found on the balance sheet.

2-A firm has $4,000,000 in its common stock account and $10,000,000 in its paid-in capital account. The firm issued 1,000,000 shares of common stock. What is the par value of the common stock?

a.$40 per share

b.$10 per share

c.$4 per share

d.$14 per share

3-Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit margin (ratio of gross profit to sales)?

a.55%

b.65%

c.73.3%

d.None of the above