If supplies have been used up during the accounting period, the correct adjusting entry would be:

Select one:

a. increase the asset 'supplies' and reduce the 'supplies expense'.

b. reduce the asset 'supplies' and reduce the 'supplies expense'.

c. increase the asset 'supplies' and increase 'supplies expense'.

d. reduce the asset 'supplies' and increase the 'supplies expense'.

Calculate the current ratio using the following information:

Cash

$7000

Accounts receivable

1400

Prepaid rent

800

Land

20,000

Equipment

6000

Accumulated depreciation

1200

Accounts payable

4000

Salaries payable

800

Loan payable, non-current

10,000

Select one:

a. 1.75

b. 1.32

c. 2.3

d. 1.92

A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were credit sales of $40,000 and collections of credit sales of $33,000. One account for $675 was written off. Smart Art uses the ageing method to account for bad debts expense. It has estimated $275 as uncollectable at year-end. At the end of the year, what is the ending balance in the Bad debts expense account?

Select one:

a. $275

b. $950

c. $6050

d. $675

On 1 December 2017, Fine Products borrowed $84,000 on a 5%, 10-year note with annual instalment payments of $8400 plus interest due on 1 December of each succeeding year. Which of the following describes the first instalment payment made on 1 December 2018?

Select one:

a. $8400 principal plus $8400 interest

b. $8400 principal plus $420 interest

c. $4200 interest only

d. $8400 principal plus $4200 interest

On 1 June 2017, Smith Services issued $38,000 of 10% debentures that mature in five years. They were sold at par. The debentures pay semiannual interest payments on 30 June and 31 December of each year. On 31 December 2017, how much is the total interest payments made to investors?

Select one:

a. $1900.00

b. $3800.00

c. $1266.67

d. $950.00

What kind of information does the rate of return on ordinary shareholders' equity provide?

Select one:

a. How much inventory is returned by customers

b. What proportion of each dollar of sales revenue generates profit

c. How much profit each shareholder makes when he sells his shares

d. How much profit a company generates relative to its shareholders' equity

What kind of information does a company's debt ratio provide?

Select one:

a. How much profit is generated by each share

b. What proportion of the company's debts are non-current liabilities

c. What proportion of the company's assets are financed by debt, as opposed to equity

d. How well a company is positioned to pay off all of its long-term debt

A company has $510 000 in Average ordinary shareholders' equity, Profit of $312 000, and Preferred dividends paid of $15 000. What is the rate of return on ordinary shareholders' equity?

Select one:

a. 59.3%

b. 61.2%

c. 58.2%

d. 62.0%

A company purchased 110 units for $20 each on 31 January. It purchased 200 units for $25 each on 28 February. It sold 200 units for $50 each from 1 March to 31 December. If the company uses the first-in, first-out inventory costing method, what is the amount of cost of sales on the income statement for the year ending 31 December? (Assume that the company uses a perpetual inventory system.)

Select one:

a. $4450

b. $7200

c. $5000

d. $2200

On 1 October 2016, Nurix Company purchased a patent for $200,000 cash. Although the patent gives legal protection for 20 years, the patent is expected to be used for only 10 years. What will be the balance in the patent account on 30 September 2017?

Select one:

a. $190,000

b. $100,000

c. $180,000

d. $200,000

Which of the following would NOT be classified as an operating activity?

Select one:

a. Interest paid

b. Dividends paid

c. Dividends received

d. Interest received

Keith and Jim are partners. Keith has a capital balance of $51,000 and Jim has a capital balance of $37,000. Bill invested $27,000 to acquire an ownership interest of 30%. Which of the following statements is true of this transaction?

Select one:

a. Keith and Jim received a bonus of $2550 each.

b. Keith and Jim received a bonus of $3750 each.

c. Bill received a bonus of $5100.

d. Bill received a bonus of $7500.

Anna and Naomi are partners. Anna has a capital balance of $49,000 and Naomi has a capital balance of $43,000. Gary invested $27,000 to acquire an ownership interest of $23,000. Which of the following is true of the partnership journal entry to record the receipt of Gary's contribution? (Assume the existing partners equally divide the bonus.)

Select one:

a. Cash is credited for $23,000 and Gary, capital is debited for $23,000.

b. Cash is debited for $23,000 and Gary, capital is credited for $23,000.

c. Cash is debited for $27,000 and Gary, capital is credited for $23,000.

d. Cash is credited for $27,000 and Gary, capital is debited for $23,000.

Which of the following will decrease the balance in Retained earnings?

Select one:

a. Repayment of debenture principal

b. Share issue

c. Share split

d. Share dividend