I believe I am allowed 4 questions for quizzes

1. Execon Company had total assets of $200,000, total liabilities of $110,000, Retained Earnings of $50,000 and total shareholders' equity of $90,000 at the beginning of the year. For the year, Execon Company earned net income of $75,000 and declared cash dividends of $30,000. At the end of the year, the company had total assets of $300,000 and its total shareholders' equity was at $135,000. At the end of the year, Execons Retained Earnings totaled:

Select one:

A.

$125,000

B.

$75,000

C.

$95,000

D.

$165,000

E.

None of the above

2. Identify the true Statement:

Select one:

A.

Extraordinary items are limited to gains that are either infrequent in occurrence or highly unusual in nature and are shown as operating expenses above the NOI line in the multi-step income statement.

B.

If the value of my land rises relative to the figure that appears on my Balance Sheet, GAAP requires that I recognize an unrealized gain on the land in my Income Statement.

C.

Copyrights, Patents and Goodwill are examples of Tangible assets.

D.

I should only recognize revenue when I have received payment from my customer.

E.

All of the above statements are false.

3. Identify the false statement.

Select one:

A.

Organizing a business entity as a corporation helps shield the business owners from the liabilities of the corporation.

B.

Businesses organized as Sole Proprietors generally have little or no required financial reporting obligations other than to the IRS.

C.

An LLC is a limited liability company.

D.

The SEC requires greater levels of reporting for partnerships than for sole proprietors.

E.

Publicly-traded Corporations face far greater reporting requirements than the typical sole proprietorship or partnership.

4. The amount of income taxes recognized on the income statement but not yet payable to the government are found on the

Select one:

A.

balance sheet in the account Deferred Income Taxes.

B.

balance sheet in the account Income Taxes Payable.

C.

income statement in the account Income Tax Expense Current.

D.

income statement in the account Income Tax Expense Deferred.

E.

on the cash flow statement below Cash Flow from Financing