Ending liabilities are 69,250, beginning equity was $88,500, common stock issued during year totaled $32,500, expenses for the year were $23,500, dividends declared totaled $14,500, ending equity for the year is $184,700, and beginning assets for the year were $225,100. What was beginning liabilities for the year? Multiple Choice $217,200 $155,850 $136,600 $157750 $253,950 Return on assets is: Computed by multiplying net income by average total assets. Computed by dividing net income by average total assets. Used in helping evaluate expenses. Found on the balance sheet. Also called rate of return. Congress passed the Sarbanes-Oxley Act to Multiple Choice Force auditors to attest to the absolute accuracy of the financial statements. Provide jobs to U.S. accountants and limit the number of jobs sent outside the country. Help curb financial abuses at companies that issue their stock to the public. Require that all companies publicly disclose their internal control plans. Impose penalties on CEO's and CFO's who knowingly sign off on bogus accounting reports, although at this time the penalties are token amounts. If a company pays cash to purchase land, the journal entry to record this transaction will include a debit to Cash. True or False True False The debt ratio is used: Multiple Choice To measure the amount of equity relative to the expenses. Only by banks when a business applies for a loan. To reflect the risk associated with a company's debts. To determine who a company owes. To determine how much debt a firm should pay off Source documents: Multiple Choice Include the chart of accounts. Are the origins of accounting information Are based on accounting entries. Include the ledger Prepaid expenses are: Multiple Choice Classified as liabilities on the balance sheet. Assets that represent prepayments of future expenses. Payments made for products and services that do not ever expire. Promises of payments by customers. Decreases in retained earnings. An account balance is: Multiple Choice The total of the credit side of the account. O Always a credit. The total of the debit side of the account. Assets = Liabilities + Equity. The difference between the total debits and total credits for an account including the beginning balance