D Question 15 Which of the following entries is the one used to record the bad debts expense estimate? Debit to Bad Debt Expense; Credit to Allowance for Doubtful Accounts Debit to Accounts Receivable; Credit to Allowance for Doubtful Accounts Debit to Allowance for Doubtful Accounts; Credit to Accounts Receivable Debit to Bad Debt Expense: Credit to Accounts Receivable D Question 16 Which of the following represents the entry to record when inventory is first purchased? OO Debit: Inventory; Credit: Accounts Payable Debit: Cost of Goods Sold; Credit: Inventory Debit: Accounts Payable; Credit: Cost of Goods Sold Debit: Cash; Credit: Inventory 3.5 pts 3.5 pts Question 17 Which of the following terms reflects the amount of the asset's value that is excluded from depreciation? Salvage Value Historical Cost Accumulated Depreciation Depreciable Cost Question 18 3.5 pts 3.5 pts A magazine publisher has an account called "unearned subscription revenue". The transaction that causes the balance of this account to decrease is: magazines are mailed to subscribers. cash is received from new subscribers. magazines are printed for the publisher. subscriptions are sold to new subscribers. Question 19 Another term frequently used to describe owners' equity is: Net assets. Gross assets Paid-in capital. Capital stock. Question 20 Retained earnings represents: Net income that has been reinvested in the company. Cash that is available for dividends. The total net income of the firm since its beginning. Net income plus gains (or minus losses) on treasury stock transactions. 3.5 pts 3.5 pts Question 21 The declaration date pertains to: 3.5 pts The date on which the board of directors declares that a dividend will be paid at some point in the future. The date used to determine who receives dividends. The date on which the board of directors declares it's going to liquidate the firm. The date a dividend is paid. Question 22 The principal reason for a company having a common stock split is to: decrease the market value per share of common stock. increase the total cash dividends paid to stockholders. capitalize retained earnings. decrease total owners' equity. 3.5 pts Question 24 A decrease in accounts payable (indirect method) would lead to: Decrease in Operating Cash Flows. Increase in Operating Cash Flows. Decrease in Financing Cash Flows. Increase in Financing Cash Flows. Question 25 Which of the following is not a category of financial statement ratios? Asset. Financial leverage. Liquidity. Profitability. 3.5 pts 3.5 pts