QUESTION 4 A company's board of directors votes to declare a cash dividend of $1.00 per share on its 12,000 common shares outstanding. The journal entry to record the declaration of the cash dividend is: A. Debit Dividend Expense $12,000; credit Cash $12,000. B. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000. C. Debit Common Dividend Payable $12,000; credit Cash $12,000. D. Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. QUESTION 5 Stock that was reacquired and is still held by the issuing corporation is called: A. Capital stock. B. Treasury stock. C. Redeemed stock D. Preferred stock QUESTION 6 Jones Corp. reported current assets of $193,000, current liabilities of $137,000, and total liabilities of $275, 714 on its most recent balance sheet. The current ratio is: A.1.4:1. B. 0.7:1. C.0.3:1 D.1:1 QUESTION 7 A component of operating efficiency and profitability, calculated by expressing net income as a percent of net sales, is the: A. Acid-test ratio B. Price earnings ratio. C. Accounts receivable turnover D. Profit margin ratio