Question (4) A company has opening equity of $215. During the year it makes a dividend payment of $85, and has net income of $135. What is the closing equity at year end? This is a single choice question. Selections are automatically selected as you use arrow to move. O $300 $265 O $130 $350 Question (12) Jelly Treats makes confectionery and at the start of the year had net assets of 440. Movement of net assets are described below. Please calculate the retained profit for the period. Proceeds received from issue of new shares 150, Increase in accumulated other comprehensive income 155, Dividends paid 200, Net assets at end of period 785 This is a single choice question. Selections are automatically selected as you use arrow to move. O 70 O290 O335 40 Question (1) Which of these liabilities would be a long-term liability? This is a single choice question. Selections are automatically selected as you use arrow to move. O Balance of a term loan repayable in the next 12 months. O Deferred tax liability. O Overdraft payable on demand. O Current year tax payable. Question (3) Which of these equity accounts is normally distributable? This is a single choice question. Selections are automatically selected as you use arrow to move. O Minority interest. O Cumulative retained earnings. O Common stock. O Accumulated other comprehensive income. Question (11) Which one of these current liability accounts would become an accounts payable (trade) before it is settled for cash? This is a single choice question. Selections are automatically selected as you use arrow to move. Notes payable. O Accrued expenses. O Deferred revenue. O Current tax payable. Question (10) Which statement accurately describes a current liability? This is a single choice question. Selections are automatically selected as you use arrow to move. It excludes all liabilities other than trade payables. O It represents all or a portion of a liability that will be paid within the next 12 months. It is those liabilities that must be repaid in full within 12 months of year end. O It represents the remaining portion of a liability that had an original maturity of less than 12 months. Question (2) Which statement accurately describes the main components of equity as they appear on a financial statement? This is a single choice question. Selections are automatically selected as you use arrow to move. O Equity consists of the number of shares in issue multiplied by the year end share price. O Equity is the sum of the cash received in relation to the issuance of all classes of stock issued by a business. O Equity consists of all stockholder capital including additional paid in capital, cumulative retained earnings, and accumulated other comprehensive income. O Equity consists of stockholder paid in capital only. Question (9) Where in the financial statements would you find next years' committed operating lease payments? This is a single choice question. Selections are automatically selected as you use arrow to move. The following year's committed operating lease payments are a form of debt that is presented within current liabilities. O In a note analyzing current liabilities. O In a note analyzing deferred revenue. O In note analyzing future payments that are not included within balance sheet liabilities. Question (6) Which statement correctly describes an important distinguishing characteristic of equity from long-term liabilities? This is a single choice question. Selections are automatically selected as you use arrow to move. O Unlike equity, debt instruments cannot meet the longer-term financing needs of a business. O Unlike debt, equity has no financial obligations for payment of capital or dividends and so provides a degree of financial stability. O Debt tends to be used by start-up businesses as it is more suited to financing the initial growth of a business because it is lower cost than equity. O In the long run it is less expensive for a business to raise finance by issuing equity than long-term debt, since stockholders have lower expectations about the returns they will receive on their investment. Question (8) Amco Inc. has the following credit balances in its books. What are their total long-term liabilities? - Accounts payable 100 - Deferred tax 50 Net retirement obligation 200 - Secured loan 200 (45 repayable next year) - Deferred revenue 35 (related to a sale to be completed next year) - Equity 125 This is a single choice question. Selections are automatically selected as you use arrow to move. 355 405 575 O290 Question (7) As a lender of senior debt to a business, which of these would be a high risk indicator for you? This is a single choice question. Selections are automatically selected as you use arrow to move. O Accounts Payable days have fallen from 45 to 40 days. O Cash balances have grown by 25% during the last year. Accounts Receivable balances have fallen by 10%. O The business has significant new loans from stockholders. Question (5) Which statement describes a determining feature of a current liability? This is a single choice question. Selections are automatically selected as you use arrow to move. O The liability is incurred as a result of normal operating activities. O It will be repaid within 6 months of the balance sheet date. O It will be repaid within 12 months of the balance sheet date. O The original settlement period of the liability was less than 12 months at the time the liability was recognized.