Question Completion Status: The following account balance information is available as of December 31, 20X4 for XYZ Co.: Cash. Accounts receivable. Marketable securities.... Prepaid insurance...... Equipment (net)...... Current liabilities (total)..... Long-term liabilities (total)... Common stock Retained earnings.... ..$500,000 ..$2,500,000 $1,000,000 ....$250,000 $7,750,000 $1,100,000 $5,000,000 ....$4,800,000 .$1,100,000 What is XYZ Co.'s debt ratio? a. 67.5% b. 103.4% OC. 50.8% d. 84.7% QUESTION 14 The following account balance information is available for XYZ Co., representing all accounts shown on its statement of financial position as of December 31, 20X7: Cash Accounts receivable..... Marketable securities.... Prepaid insurance. Equipment (net).... $3,500,000 ..$2,500,000 $800,000 $200,000 ..$7,000,000 Equipment (nel)....... Current liabilities (total)..... Long-term liabilities (total)... Common stock........ Retained earnings......... ..$7,000,000 $2,100,000 $7,000,000 ..$1,000,000 What is XYZ Co.'s retained earnings balance on December 31, 20X7? a. $3,900,000 b. $6,000,000 - $4,900,000 d. $2,700,000 QUESTION 15 On an accrual basis under generally accepted accounting principles, revenue is recognized using the realization principle. Under this principle, revenues are usually recognized a. when the earnings process is complete b. when cash is received. at the time a customer is billed d. at the time a valid contract exists between seller and buyer. Davis Co., an interior design firm, billed a client $15,000 for work completed for the client during December 20X6. This $15,000 was not received until January 20X7. Also, Davis Co. collected $9,000 from another client in December 20X6 in advance of services to be performed in January 20X7. Based on these facts, on an accrual basis under generally accepted accounting principles, the amount of revenue recognized as earned in December 20X6 should be a. 56,000 6.59.000 Oc. $15,000 d. $24,000. QUESTION 17 1 point Using accrual accounting, expenses are recorded when incurred to generate revenue. This is called the onservatism concept b. realization principle c objectivity principle d. natching principle