QUESTION 16

1. Ortiz Co. had the following account balances:
2. Sales$120,000
3. Cost of goodssold60,000
4. Salary expense10,000
5. Depreciationexpense20,000
6. Dividendrevenue4,000
7. Utilitiesexpense8,000
8. Rental revenue20,000
9. Interestexpense12,000
10. Salesreturns11,000
11. Advertisingexpense13,000
12. What would Ortiz report as total expenses in a single-step income statement?
13. a.$127,000
14. b.$134,000
15. c.$123,000
16. d.$63,000

QUESTION 17

1. Equity or debt securities held to finance future construction of additional plants should be classified on a balance sheet as:
2. a.current assets
3. b.property, plant, and equipment
4. c.intangible assets
5. d.long-term investments

QUESTION 18

1. Kohler Company owns the following investments:(4 points)
2. Trading securities (fairvalue)$ 60,000
3. Available-for-sale securities (fairvalue)35,000
4. Held-to-maturity securities (amortizedcost)47,000
5. Kohler will report securities in its long-term investments section of:
6. a.exactly $95,000
7. b.exactly $107,000
8. c.exactly $142,000
9. d.$82,000 or an amount less than $82,000, depending on the circumstances

QUESTION 19

1. For Randolph Company, the following information is available:(3 points)
2. Capitalizedleases$280,000
3. Trademarks90,000
4. Long-termreceivables105,000
5. In Randolph's balance sheet, intangible assets should be reported at
6. a.$90,000
7. b.$105,000
8. c.$370,000
9. d.$385,000

QUESTION 20

1. Which table would you use to determine how much you would need to have deposited three years ago at 10% compounded annually in order to have $1,000 today?
2. a.Future value of 1 or present value of 1
3. b.Future value of an annuity due of 1
4. c.Future value of an ordinary annuity of 1
5. d.Present value of an ordinary annuity of 1

QUESTION 21

1. The figure .94232 is taken from the column marked 2% and the row marked three periods in a certain interest table. From what interest table is this figure taken?
2. a.Future value of 1
3. b.Future value of annuity of 1
4. c.Present value of1
5. d.Present value of annuity of 1

QUESTION 22

1. Assume ABC Company deposits $25,000 with First National Bank in an account earning interest at 6% per annum, compounded semi-annually. How much will ABC have in the account after five years if interest is reinvested?
2. a.$33,598
3. b.$25,000
4. c.$32,500.
5. d.$33,456

QUESTION 23

1. Which of the following should be recorded in Accounts Receivable?
2. a.Receivables from officers
3. b.Receivables from subsidiaries
4. c.Dividends receivable
5. d.None of the above.

QUESTION 24

1. Kaniper Company has the following items at year-end:
2. Cash inbank$20,000
3. Pettycash300
4. Short-term paper with maturity of 2months5,500
5. Postdatedchecks1,400
6. Kaniper should report cash and cash equivalents of:
7. a.$20,000
8. b.$20,300
9. c.$25,800
10. d.$27,200

QUESTION 25

1. AG Inc. made a $10,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as revenue?a.$9,800
2. b.$ 9,900
3. c.$10,000
4. d.$ 10,100