Reference no: EM132545637

Questions -

Q1. Rising Sun Corporation had the following financial information for the year ended 2020: Cash P100,000; Accounts receivable P250,000; Inventory P250,000; Equipment P300,000; Accounts payable: P125,000; 8 year Loans payable P500,000; SHE: P275,000. Based on the given data, what is the company's debt-equity ratio?

a. 56%

b. 30.56%

c. 69.44%

d. 227.27%

Q2. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 45,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?

a. 40,000

b. 5,000

c. 45,000

d. 50,000

Q3. Rising Sun Corporation had the following financial information for the year ended 2020: Cash P100,000; Accounts receivable P250,000; Inventory P250,000; Equipment P300,000; Accounts payable: P125,000; 8 year Loans payable P500,000; SHE: P275,000. Based on the given data, what is the company's quick ratio?

a. 0.56:1

b. 3:1

c. 4.8:1

d. 2.8:1

Q4. Moon Inc. has 5,000 shares of 6%, P100 par value, cumulative preferred stock and 50,000 shares of P1 par value common stock outstanding at December 31, 2020. What is the annual dividend on the preferred stock?

a. P0.60 per share

b. P3,000 per share

c. P6 per share

d. P60 per share

Q5. The percentage analysis of increases and decreases in individual items in comparative financial statements is called

a. Paid-In Capital in Excess of Par/Common for P2,100

b. Paid-In Capital from Treasury Stock for P8,500

c. Treasury Stock for P8,500

d. Paid-In Capital from Treasury Stock for P2,100