The dollar amount of the common stock on the balance sheet of a corporation that has common stock with a par value is the number of shares:

Select one:

a. issued, multiplied by the amount received per share.

b. outstanding, multiplied by the amount received per share.

c. issued, multiplied by the par value per share.

d. outstanding, multiplied by the par value per share.

Question 12

Which of the following accounts/captions are not ever included in the calculation for Gross Profit?

Select one:

a. Revenues.

b. Cost of Goods Sold.

c. Net Sales.

d. General and Selling Expenses.

Question 13

Which of the following is not a category of financial statement ratios?

Select one:

a. Financial leverage.

b. Liquidity.

c. Profitability.

d. Prospectus.

Question 14

The liability for product warranty claims is an example of a liability that:

Select one:

a. has been calculated using estimates.

b. has been recorded in the process of matching revenue and expense.

c. also resulted in a reduction of net income.

d. all of these.

Question 15

The concept of matching revenue and expense refers to the fact that:

Select one:

a. expenses for a period equal the revenues for the period.

b. all costs incurred in the process of earning revenues during a period are recorded as expenses in that period.

c. all cash disbursements during a period are subtracted from all cash receipts during the period.

d. costs incurred in the process of earning revenues during a period are deferred and expensed in a future period.