Reference no: EM13972058
1. Profit margin and asset turnover can be combined to create
a. return on assets
b. return on equity
c. earnings per share
d. price earnings ratio
e. none
2. Which of the following increases cash
a. issuance to long term debt
b. acquisition of property plant and equipment
c. payment of dividends
d. decrease in short term debt
e. none
3. Elsie Jackson is saving for a down payment on a condo. She needs 20,000. How much must she invest in a savings account that pays 5% annually to have the 20,000 in 8years? Round to the nearest dollar.
a. 13,206
b. $12,983
c. 13,616
d. 13,537
e. none
4. Which of the following increase cash?
a. issuance of long term debt
b. acquisition of property plant and equipment
c. payment of dividends
d. decrease in short term debt
e. none
5. Profit margin and asset turnover can be combined to create
a. return on assets
b. return on equity
c. earnings per share
d. price earnings ratio
e. none
6. Which of the following ratios is coverage ratio
a. return on assets
b. return on equity
c. earnings per share
d. times interest earned
e. none
7. Right-hand entries increase
a. asset accounts
b. owners equity accounts
c. liabilities
d. both b and c
e. none
8. A customer pays on an account receivable. The account that should be credited is
a. inventory
b. cash
c. accounts payable
d. accounts receivable
e. none
9. Which of the following ratios measures liquidity?
a. current
b. payout
c. gross margin
d. asset turnover
e. none
10. Capital stock is a part of which of the following accounts?
a. owners’ equity
b. liabilities
c. current assets
d. long term assets
e. none
11. Agr corporation signed a two-yr lease for the building that the company occupies. The account that should be debited is
a. prepaid expense
b. cash
c. accounts payable
d. building
e. none
12. left-hand entries DECREASE
a. asset accounts
b. liability accounts
c. owner’s equity accounts
d. both b and c*
e. none
13. Which of the following increases cash?
a. Issuance of long-term debt
b. Acquition of property plant and equipment
c. paymentof divdends
d. decrease in short term debt
e. None
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