ACCT 105 Week 5 Quiz | Assignment Help | American Public University System
- american-public-university-system / ACCT 105
- 16 Jan 2021
- Price: $5
- Other / Other
ACCT 105 Week 5 Quiz | Assignment Help | American Public University System
Quiz Submissions -
ACCT105 Week 5 Quiz
Which of the following
transactions would result in an increase in the current ratio assuming that the
ratio presently is 2:1?
Question options:
o
Customer paid her accounts receivable.
o
Merchandise was purchased on account.
o
Paid a long-term debt.
o
None of the above transactions would
increase the present current ratio.
Question 2
What is the rate earned
on common stockholders' equity for the following data? Total current
liabilities (noninterest bearing) - $300,000; bonds payable, 5% (issued in
2007, due in 20 years) - $600,000; preferred 6% stock, $200 par - $240,000;
common stock, $20 par - $480,000; premium on common stock - $120,000; retained
earnings - $420,000. Income before income taxes was $180,000 and income taxes
were $78,000 for the current year.
Question options:
o
7 percent
o
8.6 percent
o
9.1 percent
o
8.1 percent
o
6.1 percent
Question 3
What is the current
ratio for the following data? Cash - $34,000; marketable securities - $16,000;
accounts and notes receivable, net - $46,000; merchandise inventory - $61,000;
prepaid expenses - $3,000; accounts and notes payable, short term - $64,000; accrued
liabilities - $16,000.
Question options:
o
1:2
o
2:1
o
1.2:1
o
3:1
o
4:1
Question 4
The amount of
depreciation expense in a period is added back to net income under the indirect
method.
Question options:
o
True
o
False
Question 5
Express cost of goods
sold as a common-size percentage using the following data. Sales - $45,000;
cost of goods sold - $29,340; gross profit from sales - $15,660; operating
expenses - $10,800; net income - $4,860.
Question options:
o
66 percent
o
100 percent
o
65.2 percent
o
6.03 percent
Question 6
Paid short-term portion
of notes payable, $60,000. What is the effect on working capital, the current
ratio, and the acid-test ratio? Assume the current ratio is 1:1 before this
transaction occurred.
Question options:
o
Decreases working capital, current
ratio, and acid-test ratios.
o
Increases working capital, no effect on
current and acid-test ratios.
o
Increases working capital, decreases
current and acid-test ratios.
o
No effect on all three items.
o
No effect on working capital, increases
current ratio and acid-test ratio.
Question 7
The former statement of
changes in financial position presented information on the flow of financial
resources into and out of a business.
Question options:
o
True
o
False
Question 8
If capital stock is
split three for one, this transaction is reported on a statement of cash flows.
Question options:
o
True
o
False
Question 9
What is the accounts
receivable turnover using the following data? Accounts receivable, January 1 -
$36,000; accounts receivable, December 31 - $48,000; gross sales - $240,000;
sales returns and allowances - $30,000; net sales - $210,000.
Question options:
o
5.257 times per year
o
5.83 times per year
o
5 times per year
o
4.375 times per year
o
4.6 times per year
Question 10
A company must publish
a statement of cash flows for each period for which it publishes an income
statement.
Question options:
o
True
o
False
USA 
India