Question 2.2. (TCO A) Dividends flow through which one of the following statements? (Points : 5) The Balance Sheet The Statement of Retained Earnings The Income Statement None of the above Question 3.3. (TCOs A and B) Below is a partial list of account balances for LBJ Company. Cash $12,000 Prepaid rent 1,300 Accounts receivable 7,000 Accounts payable 5,000 Notes payable 9,000 Common stock 22,000 Dividends 2,000 Revenues 45,000 Expenses 35,000 What did LBJ Company show as total debits? (Points : 5) $57,300 $81,000 $55,300 $56,000 Question 4.4. (TCO B and E) Under cash-basis accounting, which of the following transactions would not be recorded? (Points : 5) Cash sales to customers Payments to vendors Sales on account Payroll payments to employees Question 5.5. (TCO D) If ending inventory of the current year is understated (Points : 5) Cost of goods sold for the current year will be understated Gross profit for the current year will be unaffected Gross profit for the current year will be understated Net income for the current year will be overstated Question 6.6. (TCO A and E) Equipment was purchased for $27,000. Freight charges amounted to $1,000 and there was a cost of $5,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $5,000 salvage value at the end of its 7-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5) $4,714 $4,000 $3,857 $3,285 Question 8.8. (TCO C) Which inventory accounting system does not require a physical count of the inventory at the year end? (Points : 5) Periodic inventory system Perpetual inventory system Specific Identification None of the above Question 10.10. (TCO F) When performing a common-size balance sheet, the 100% figure is _____. (Points : 5) net sales total liabilities total assets total equity Question 11.11. (TCO F) Ratios are most useful in expressing _____. (Points : 5) cause-and-effect relationships the relationships between numbers the delta between numbers the root cause of the problem Question 12.12. (TCO F) Creditors are usually most concerned with analyzing _____. (Points : 5) the company stock price turnover liquidity profitability Question 13.13. (TCO F) Shareholders are usually most interested in evaluating _____. (Points : 5) profitability leverage turnover the ability to pay debts as they come due Question 14.14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) multiply the stated rate times the bond?s face value calculate the present value of the principal only calculate the present value of both the principal and the interest calculate the present value of the interest only

Question 2.2. (TCO A) Dividends flow through which one of the following statements? (Points : 5) The Balance Sheet The Statement of Retained Earnings The Income Statement None of the above Question 3.3. (TCOs A and B) Below is a partial list of account balances for LBJ Company. Cash $12,000 Prepaid rent 1,300 Accounts receivable 7,000 Accounts payable 5,000 Notes payable 9,000 Common stock 22,000 Dividends 2,000 Revenues 45,000 Expenses 35,000 What did LBJ Company show as total debits? (Points : 5) $57,300 $81,000 $55,300 $56,000 Question 4.4. (TCO B and E) Under cashbasis accounting, which of the following transactions would not be recorded? (Points : 5) Cash sales to customers Payments to vendors Sales on account Payroll payments to employees Question 5.5. (TCO D) If ending inventory of the current year is understated (Points : 5) Cost of goods sold for the current year will be understated Gross profit for the current year will be unaffected Gross profit for the current year will be understated Net income for the current year will be overstated Question 6.6. (TCO A and E) Equipment was purchased for $27,000. Freight charges amounted to $1,000 and there was a cost of $5,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $5,000 salvage value at the end of its 7year useful life. Depreciation expense each year using the straightline method will be _____. (Points : 5) $4,714 $4,000 $3,857 $3,285 Question 8.8. (TCO C) Which inventory accounting system does not require a physical count of the inventory at the year end? (Points : 5) Periodic inventory system Perpetual inventory system Specific Identification None of the above Question 10.10. (TCO F) When performing a commonsize balance sheet, the 100% figure is _____. (Points : 5) net sales total liabilities total assets total equity Question 11.11. (TCO F) Ratios are most useful in expressing _____. (Points : 5) causeandeffect relationships the relationships between numbers the delta between numbers the root cause of the problem Question 12.12. (TCO F) Creditors are usually most concerned with analyzing _____. (Points : 5) the company stock price turnover liquidity profitability Question 13.13. (TCO F) Shareholders are usually most interested in evaluating _____. (Points : 5) profitability leverage turnover the ability to pay debts as they come due Question 14.14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5) multiply the stated rate times the bond's face value calculate the present value of the principal only calculate the present value of both the principal and the interest calculate the present value of the interest only