Which of the following is the correct order for the preparation of the financial statements?

Select one:

a. Income statement > retained earnings statement > balance sheet.

b. Retained earnings statement > income statement > balance sheet.

c. Balance sheet > income statement > retained earnings statement.

d. Income statement > balance sheet > retained earnings statement.

Question 22

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Which of the following is TRUE of a corporation?

Select one:

a. They are incorporated with a national agency.

b. At least one owner has unlimited liability.

c. They are a separate taxable entity.

d. More than 70% of businesses are organized this way.

Question 23

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The following sales data is available (in thousands).

2013	2012	2011	2010
900,000	$960,000	$920,000	$820,000

What is the percentage decrease in sales from 2011 to 2013?

Select one:

a. 2.17%

b. 2.22%

c. 4..35%

d. 6.67%

Question 24

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Brennan, Inc. issued $15,000 in capital stock in exchange for cash. What is the effect of this transaction?

Select one:

a. Total Retained Earnings will increase.

b. Net income will increase.

c. Total assets remain unchanged.

d. Cash flow from Financing Activities will increase.

Question 25

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Which of the following accounts would be closed to Income Summary at the end of the accounting period?

Select one:

a. Fees Earned.

b. Prepaid Rent.

c. Dividends.

d. Accumulated Depreciation.

Question 26

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Referring to the Harley Davidson financial statements, what was the liabilities to stockholders' equity ratio for December 31, 2012?

Select one:

a. 2.586

b. .851

c. .588

d. 1.709

Question 27

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Which of the following organizes information in chronological order and provides information about the entire transaction in one place?

Select one:

a. General Ledger

b. Trial Balance.

c. General Journal.

d. Chart of Accounts.

Question 28

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If the trial balance does not balance it indicates that

Select one:

a. he wrong account was used to journalize a transaction.

b. Debits did not equal credits when a transaction was posted.

c. A transaction was not journalized.

d. A transaction was not posted to the general ledger.

Question 29

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According to the accounting equation, an increase in an asset could be accompanied by:

Select one:

a. An increase in another asset

b. No other changes

c. An increase in a liability

d. A decrease in equity

Question 30

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Brennan Company performed services for a client in January, billed the client in February, and received payment in March. Under the accrual basis of accounting, when should Brennan record the revenue?

Select one:

a. Some in each of the three months.

b. All in February.

c. All in March.

d. All in January.