70.2K

Verified Solution

Link Copied!

Submit your answers as soon as possible to earn KARMA points.

1. The group of users of accounting information charged with achieving the goals of the business, is which of the following? A. Auditors B. Investors C. Managers D. Creditors 2. Which of the following is not a liability? A. Unearned Revenue B. Accounts Payable C. Accounts Receivable D. Interest Payable 3. An income statement does which of the following? A. summarizes the changes in retained earnings for a specific period of time B. reports the changes in assets, liabilities, and stockholders equity over a period of time C. reports the assets, liabilities, and stockholders equity at a specific date D. presents the revenues and expenses for a specific period of time 4. For 2010, Kuhlman Corporation reported net income of $28,000; net sales $400,000; and average shares outstanding of 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? A. $4.67 B. $0.25 C. $66.67 D. $14.86 5. Kingery Corporation has current assets of $1,250,000 and current liabilities of $750,000. If they pay $250,000 of their accounts payable, what will their new current ratio be? A. 2.0:1 B. 1.7:1 C. 2.5:1 D. 1.25:1 6.Suppose that Drake Corporation produced and sold 5,000 laptop computers during 2010. It reported $270,000 cash provided by operating activities. In order to maintain production at 5,200 laptops, Drake invested in $8,000 in equipment. Drake paid $2,000 in dividends. What is Drakes free cash flow? A. $262,000 B. $260,000 C. $268,000 D. $278,000 7. Anderson Company received a cash advance of $1,000 from a client. As a result of this event, which of the following will occur? A. equity increased by $1,000 B. liabilities increased by $1,000 C. liabilities decreased by $1,000 D. assets decreased by $1,000. 8. At September 1, 2010, Kern Enterprises reported a cash balance of $45,000. During the month, Kern collected cash of $15,000 and made disbursements of $25,000. At September 31, 2010, what is the cash balance? A. $25,000 credit B. $35,000 credit C. $60,000 debit D. $35,000 debit 9. Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them does which of the following? A. increases the potential for errors and fraud B. decreases the potential for errors and fraud C. is an example of good internal control D. is a good example of safeguarding the company's assets.

Answer & Explanation Solved by verified expert

See Answer