Reference no: EM13322336

Question 1.1. (TCOs A, B, and C) Which type of corporate information is available to investors?
Sales budget
Operating expense budget
Cash provided by investing activities
Five-year strategic plan


Question 2.2. (TCO C) Paying back long-term debt is an example of a(n)
non-cash investing activity.
investing activity.
financing activity.
operating activity.


Question 3.3. (TCO C) Buying a new plant would be an example of which type of activity?
Operating
Financing
Investing
None of the above


Question 4.4. (TCO A) Which of the following should not be classified as a current liability?
Accounts Payable
A note payable due in 15 months
Income Tax Payable
Unearned Revenue


Question 5.5. (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average shares outstanding of 7,500. There were no preferred stock dividends. What was the 2012 earnings per share?

$100.00
$50.00
$10.00
$110.00


Question 6.6. (TCO D) Which of the following describes the normal balance and classification of the Unearned Revenue account?
debit, Expense
credit, Liability
credit, Stockholders' equity
debit, Liability


Question 7.7. (TCO E) The accrual accounting term used to indicate an item paid in advance or the receipt of cash in advance is
prepayment.
depreciation.
deferral.
accrual.


Question 8.8. (TCOs A and B) A periodic inventory system would most likely be used by a(n)
automobile dealership.
jewelry store.
furniture store.
local neighborhood restaurant.


Question 9.9. (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise.

- Received goods for $100,000, terms 2/10, n/30
- Returned $5,000 of the shipment for a credit due to damaged goods
- Paid $1,500 for freight in
- Paid the invoice within the discount period

As a result of these events, the company's merchandise inventory
increased by $96,500.
increased by $95,000.
increased by $94,500.
increased by $94,600.


Question 10.10. (TCO A) In periods of rising prices, which of the following inventory methods results in the lowest income taxes?
FIFO method
Average cost method
LIFO method
Cannot determine based on the information given