1. Compute the gross profit rate for a company reporting cost of goods sold of $316,000, and net sales of $460,000. Format your answer as ##.# (do not include any signs).

2. The balance in the Income Summary account after the first two closing entries are posted will be equal to which of the following?

1. Total revenues
2. Total expenses
3. Net income
4. Total dividends

3. Which of the following can't be computed from the post-closing trial balance?

a. Total assets

b. Total liabilities

c. Total capital earned

d. Net income

4. The gross profit rate can be used to assess which of the following?
5. 1. Effectiveness of the purchasing function
   2. Soundness of pricing policies
   3. Both the effectiveness of the purchasing function and the soundness of pricing policies
   4. Neither the effectiveness of the purchasing function or the soundness of pricing policies. Bottom of Form

5. Which of the following will be used to determine the order of payment to creditors if a company declares bankruptcy?

1. a. First come, first served order
2. b. By dollar amount owed using a largest to smallest order
3. c. By the age of the liability using an oldest to newest order
4. d. In a specific and predetermined order.