Reference no: EM13928755

1. The Coulter Corporation Stockholders' Equity section includes the following information: What is the total selling price of the common stock? Preferred Stock $12,000 Paid-in Capital in Excess of Par-Preferred $2,700 Common Stock $15,000 Paid-in Capital in Excess of Par-Common $4,100 Retained Earnings $8,200 A. $19,100
B. $27,300
C. $14,700
D. $15,000

2. Eagle Ridge, Inc. issued 40 shares of $20 par value stock to its accountant in full payment for her $900 fee for assisting in setting up the new company. The entry for the issuance of the stock is a
A. debit to Paid-in Capital in Excess of Par-Common for $100.
B. credit to Common Stock for $800.
C. debit to Common Stock for $800.
D. credit to Common Stock for $900.

3. Galaxy Donuts has a cash conversion cycle of _______ days, which is a very healthy turnover rate.
A. 60
B. 30
C. 90
D. 120

4. An example of a cash outflow from investing activities is
A. paying cash dividends.
B. the purchase of treasury stock.
C. making a loan to another company.
D. issuance of a note payable.

5. Which of the following is not a part of financing activities?
A. Paying dividends
B. Buying land
C. Issuing stock
D. Paying off loans

6. Haskins, Inc. sells 1,000 shares of $12 par common stock for $20 per share. The journal entry is
A. debit Cash $20,000; credit Common Stock $12,000; credit Paid-In Capital in Excess of Par-Common Stock $8,000.
B. debit Cash $20,000; credit Common Stock $20,000.
C. debit Cash $12,000; debit Paid-In Capital in Excess of Par-Common $8,000; credit Common Stock $20,000.
D. debit Cash $12,000; credit Common Stock $12,000.

7. A purchase of new equipment on a note payable under the direct method is reported
A. as a separate disclosure as a non-cash transaction.
B. in the investing section of the cash flow statement.
C. in the financing section of the cash flow statement.
D. in the operating section of the cash flow statement.

8. The statement of cash flows reports the sources and uses of cash from financing, investing, and _______ activities.
A. liquidation
B. operating
C. credit
D. managerial

9. Which is a value placed on a certificate for a share of the company's stock?
A. Additional paid-in capital
B. Market value
C. Stated value
D. Paid-in capital

10. Tucker Enterprises' Accounts Receivable increased by $48,000, and its Accounts Payable increased by $27,000. What is the net effect on cash from operations under the indirect method?
A. +$21,000
B. +$75,000
C. -$75,000
D. -$21,000

11. Frank's Taxidermy has a cash conversion cycle of _______ days, which means the business may be facing a cash flow crunch.
A. 10
B. 40
C. 100
D. 70

12. Fine Furniture Company had a net income of $50,000. Accounts receivable increased by $30,000; inventory decreased by $20,000; amounts payable increased by $4,000; and salaries payable decreased by $1,000. The amount of cash flow from continuing operating activities under the indirect method is
A. $65,000.
B. $43,000.
C. $37,000.
D. $55,000.

13. Tucker, Inc.'s net sales decreased from $90,000 in year one to $45,000 in year two, and its cost of goods sold decreased from $30,000 in year one to $20,000 in year two. The vertical analysis based on sales for cost of goods sold for the two periods (rounded to nearest tenth of a percent) is
A. 44.4% and 33.3%.
B. 33.3% and 44.4%.
C. 225% and 300%.
D. 300% and 225%.

14. Cherry Corporation's outstanding stock is 100 shares of $100 par, 11% cumulative preferred stock, and 2,000 shares of $12 par common stock. Cherry paid $1,600 in cash dividends during the year. No dividends are in arrears. Common stockholders received
A. $0.
B. $1,100.
C. $2,500.
D. $500.

15. The following information applied to Advanced Industries, Inc. for 2014: What is the dividend yield for Advanced Industries, Inc. (to the nearest tenth of a percent)? Earnings/share $17.68 Market price per share of common stock $52 Number of shares of common stock outstanding 52,000 Net income $48,000 Dividends/share $7.14
A. 40.4%
B. 92.3%
C. 13.7%
D. 34.0%

16. For the years 2012, 2013, and 2014, the sales of Red Line, Inc. are $40,000, $60,000 and $80,000, respectively. If 2012 is the base year, the trend percentage for 2013 was End of exam
A. 0%.
B. 200%.
C. 133%.
D. 150%.

17. Choose the correct formula to determine a trend percentage.
A. An item from the base year multiplied by the same item from the current year.
B. An item from any year divided by the same item from a base year, multiplied by 100.
C. The total income of the current year, minus the total income from a base year.
D. Net profit of the current year divided by net profit of a base year.

18. The stockholders' right of _______ means that stockholders will receive a proportionate share of any assets left after a company goes out of business.
A. liquidation
B. preemption
C. voting
D. dividends

19. On the income statement, extraordinary items are reported
A. immediately before the discontinued operations section.
B. immediately after the continuing operations section.
C. before the operating income section.
D. net of income tax or net of income tax savings.

20. The formula for computing additional paid-in capital in excess of par is shares of stock times
A. par value per share of stock.
B. selling price per share minus par value per share.
C. selling price per share of stock.
D. selling price per share plus par value per share.