ACCT 410V

oral Inc. has total assets of $5,380,000 at the beginning of the year and $5,761,000 at the end of the year. If its net income during the year is $552,700, what is Coral's return on assets for the year? (Round your answer to one decimal place.) a.11.9% b.9.9% c.13.9% d.6.9%

9.9%

A common-sized income statement is prepared by expressing income statement amounts as a percent of a.sales. b.ending inventory. c.gross profit. d.cost of goods sold.

A

Which of the following indicates a change in retained earnings for a given period? a.Net income minus dividends b.Gross income minus dividends c.Net income minus depreciation d.Net income minus cash expenses

A

Which of the following statements about a limited liability company (LLC) is true? a.An LLC has average access to capital. b.An LLC is a taxable entity. c.An LLC has an unlimited life. d.The formation of an LLC is a complex process.

A

Consider the following information related to Honor Inc.:Common stock at the beginning of the year$7,000Common stock issued during the year2,200Net income for the year4,580Dividends paid during the year2,240Which of the following is the accurate way of reporting the common stock and retained earnings on the statement of stockholders' equity at the end of the year? a.$7,000 is shown as common stock, and $4,580 is shown as retained earnings. b.$9,200 is shown as common stock, and $2,340 is shown as retained earnings. c.$11,540 is shown as common stock, and $0 is shown as retained earnings. d.$9,200 is shown as common stock, and $4,580 is shown as retained earnings.

B

Identify the correct order in which land, accounts receivable, cash, and inventory are listed in the Assets section of a balance sheet. a.Cash, land, accounts receivable, inventory b.Cash, accounts receivable, inventory, land c.Land, inventory, accounts receivable, cash d.Cash, inventory, accounts receivable, land

B

Which of the following businesses changes basic inputs into products that are sold to customers? a.A service business b.A manufacturing business c.A retail business d.A merchandising business

B

Which of the following is reported on an income statement? a.Increase or decrease in cash b.Net income or loss c.Retained earnings d.Beginning and ending cash

B

Which of the following statements about a partnership is true? a.A partnership can obtain large amounts of resources by issuing shares of stock. b.The partners have unlimited liability to creditors for the debts of the company. c.A partnership is organized under state or federal statutes as a separate legal entity. d.In a partnership, partners receive earnings in the form of dividends.

B

_____ is defined as an information system that provides reports to stakeholders about the economic activities and condition of a business. a.Capital budgeting b.Accounting c.Hedging d.Auditing

B

Consider the following information for Spring Inc.:Beginning balance of retained earnings$3,710Common stock issued during the year1,120Net income for the year4,600Dividends paid during the year2,750Ending cash balance750Calculate Spring's ending balance of retained earnings for the year. a.$6,680 b.$5,930 c.$5,560 d.$6,310

C

The _____ and the _____ report a company's transactions for a period and are not cumulative. a.balance sheet; statement of retained earnings b.income statement; balance sheet c.statement of cash flows; income statement d.statement of cash flows; balance sheet

C

The following transactions relate to Spring Inc.:Issuance of common stock$10,600Payment of dividends1,600Cash sales4,700Payment of expenses2,500 As a result of the above transactions, the profitability metric of the company increases by a.$4,700. b.$3,800. c.$2,200. d.$533.

C

Leon deposits $5,000 in a bank account in the name of Beta Inc., in return for shares of common stock in Beta. Which of the following is the effect of this transaction on the financial statements of Beta? a.An increase in cash flows from investing activities b.A decrease in cash flows from investing activities c.A decrease in cash flows from financing activities d.An increase in cash flows from financing activities

D

Which of the following is a major objective of financial accounting? a.To track the progress of a project through frequent financial reports b.To report the implications of an organization's activities on its ecological and social environment c.To guide management in making financing, investing, and operations decisions for the company d.To report changes in the financial condition of a business over a period of time

D

Which of the following assets is most liquid? a.Land and building b.A marketable security c.A long-term investment d.Machinery

Marketable Security