Accounting final

Which of the following items are classified as cash outflows from operating activities on the statement of cash flows? Multiple select question. purchase of a building payment on account payable retirement of common stock purchase of supplies

payment on account payable purchase of supplies Interest paid on bonds

When comparing the financial statements of two different companies, a financial analyst would use which two categories of ratios? Multiple select question. equity ratios profitability ratios asset ratios risk ratios

profitability ratios risk ratios

Vertical analysis is also commonly known as Blank size analysis.

Common

Convertible Redeemable Cumulative

Marcus turn in his preferred stock and receives common shares in exchange. Norbert Inc. demands return of preferred stock at the pre-specified amount During the current year, Petra Inc. pays dividends that were not declared last year

What is the formula to compute the return on assets?

Net income divided by average total assets.

The number of shares authorized is set forth in the company's: Multiple choice question. articles of incorporation general journal general ledger

articles of incorporation

Dividends payable is recorded as a credit on the

declaration date.

Preferred stock generally (has/does not have) ______ voting rights and (has/does not have) ______ preference as to dividends. Multiple choice question. does not have; does not have does not have; has has; does not have has; has

does not have; has

When prepaid accounts increase, it indicates the company has paid ______ cash than it recorded as operating expenses.

more

The return on assets is calculated by dividing ____ by _______.

net income; average total assets

The average collection period equals 365 days divided b

receivables turnover

The formula for average collection period is

365 divided by the receivables turnover ratio.

Which of the following accounts results in adjustments to net income under the indirect method of preparing the statement of cash flows if their balances change during the year?

Accounts payable Accounts receivable Inventory

The legal capital per share of stock that is assigned when the corporation is first established is referred to as BLANK BLANK

Par Value

Which of these are liquidity ratios

Receivables turnover Current ratio Average collection period

Additional taxes and more paperwork are the two primary disadvantages of this business form: Multiple choice question. partnership sole proprietorship corporation

corporation

The dividend yield is calculated by dividing

dividends per share by the stock price per share

The most important advantage to the corporate form of business is

limited liability

Disadvantages of the corporate form of business are Multiple select question. additional taxation. ease of raising capital. less paperwork. more paperwork

additional taxation. more paperwork

Mathematically, the current ratio is expressed as current assets divided by

current liabilities

Shareholders' equity is another common term for blank equity.

Stockholders

Cash inflows and outflows involving stockholders and creditors are classified on the statement of cash flows as Blank Activites

Financing

The total number of shares that a company may sell is referred to as Blank shares.

authorized

The formula to compute the receivables turnover ratio is net credit sales divided by

average accounts receivable.

Which of the following is the formula for the current ratio?

Current assets divided by current liabilities.

What is the formula to compute the average days in inventory?

a. 365 days/inventory turnover ratio

The Blank Blank ratio provides a more conservative measure of a company's ability to pay its current

acid test

When a business incorporates, it must file its ______ with the state in which it incorporates.

articles of incorporation

Sales on account are $200,000. Cash sales during the period are $50,000. Beginning accounts receivable is $20,000, and ending accounts receivable is $30,000. What is the total cash collected from customers during the period? Multiple choice question. $220,000 $230,000 $240,000 $250,000

$240,000 (200,000 + 50,000 - 10,000 = 240,000)

What is the formula for the inventory turnover ratio?

Cost of goods sold divided by average inventory.

The purchase and sale of long-term assets and current investments are classified as operating activities. financing activities. investing activities.

Investing

The three classifications on the statement of cash flows are cash flows from (Select all that apply.) Multiple select question. discontinued activities. investing activities. operating activities. financing activities. business activities.

Investing operating financing

What is the formula for the receivables turnover ratio?

Net credit sales divided by average accounts receivable (net).

What is the formula for the profit margin ratio?

Net income divided by net sales.

Preferred stock is "preferred" over common stock by providing preferred stock holders with these rights: Multiple select question. consistently higher return than earned by common stockholders guaranteed dividends preference in distribution of assets during dissolution of corporation first right to specified amount of dividends

Preference in distrabution of assets during dissolution of corp First right to specified amount of dividends

A corporation is owned by its BLANK

Shareholders

The financial statement that provides information about cash receipts and cash disbursements for the period is the Multiple choice question. balance sheet. statement of cash flows. income statement. statement of retained earnings.

Statement of cashflow

In a statement of cash flows, the sum of cash inflows and outflows is equal to Multiple choice question. net income plus depreciation and amortization. the change in the cash balance. cash flows from operating activities.

The change in the cash balance

The journal entry to record the declaration of a dividend includes ______. Multiple select question. a credit to Dividends declared a debit to Dividends a credit to Retained earnings a credit to Dividends payable a credit to Cash

a debit to dividendsa credit to dividends payable

Retained earnings are: Multiple select question. equal to cash. sometimes called earned capital. all of the company's earnings not distributed to stockholders. increased by net income. decreased by dividends. decreased by purchases of land.

all of the company's earnings not distributed to stockholders. sometimes called earned capital. increased by net income. decreased by dividends.

A business that incorporates must file a document with the state, which includes a description of the business activities, the shares to be issued, and the composition of the board of directors. Which of the following terms are used to describe this document? Multiple select question. Corporate tax return Corporate proxy Articles of incorporation Corporate charter

articles of incorporation corporate charter

Return on assets is calculated as net income divided by

average total assets.

Which of the following represents the first step in preparing a statement of cash flows in the correct order? termine the net cash flows from investing activities determine the net cash flows from financing activities combine operating, investing, and financing activities calculate the net cash flows from operating activities

calculate the net cash flows from operating activities

Which of the following items are classified as cash inflows from operating activities on the statement of cash flows? Multiple select question. Borrowing from bank Collection of interest Payment of utilities Collection from customers Sale of a building

collection from customers Collection of interest

Which of the following represents the final step in preparing a statement of cash flows in the correct order? Multiple choice question. combine operating, investing, and financing activities calculate the net cash flows from operating activities determine the net cash flows from investing activities determine the net cash flows from financing activities

combine operating, investing, and financing activities

When a corporation distributes assets of the company to its investors, it is referred to as a(n) Multiple choice question. warrant. dividend. option. expense.

dividend

The rights of common stockholders typically include which of the following? Multiple select question. Right to vote for corporate directors. Right to distribution of assets in liquidation. Right to receive a percentage of net income each year. Right to dividends when declared.

right to dividends when declared, right to vote for corporate directors, & right to distribution of asses in liquidation

The average collection period is calculated as 365 divided by

the receivable turnover ratio.

Historically, par value was considered to be the amount of cash that must be maintained in the corporation for contingencies. the maximum amount of money the company could borrow. the amount of retained earnings that must be appropriated for future dividends. the value of the company's shares of stock.

the value of the company's shares of stock

The advantages to the corporate form of business include Multiple select question. transferability of ownership. double taxation for the corporation. ease of raising capital.

transferability of ownership. ease of raising capital.

Preferred stockholders: Multiple choice question. have the right to receive dividends only in the years the board of directors declares dividends. must receive dividends every year. must receive more dividends per share than the common stockholders. have the right to receive dividends only if there are enough dividends to pay the common stockholders too.

have the right to receive dividends only in the years the board of directors declares dividends.

The amount of money paid into a company by its owners is referred to as:

invested capital

In a corporation, the stockholders' potential loss is Multiple choice question. limited to the amount of the investment. limited to the amount of net income. unlimited with responsibility for all corporate losses.

limited to the amount of the investment.

Special contractually granted features can make preferred stock: Multiple select question. extraordinary convertible redeemable cumulative

-convertible -redeemable- cumulative

Which of the following items are classified as cash outflows from operating activities on the statement of cash flows? Multiple select question. issuance of bonds Payment of salaries payment on account purchase of supplies on account purchase of building

-payment on account -payment of salaries

Recipes, Inc. had Sales of $120,000 and Cost of goods sold of $80,000 for the year. All sales were credit sales. Accounts receivable was $10,000 at the beginning of the year and $14,000 at the end. Inventory was $18,000 at the beginning of the year and $22,000 at the end. Recipes' accounts receivables turnover equals

10

AnuU, Inc. sold 100,000 shares of the 1,000,000 shares it is allowed to sell. AnuU repurchased 10,000 of these shares. The number of shares issued equals ______ shares. 1,000,000 100,000 90,000 10,000 910,000

100,000

Limited liability and ease of raising outside capital are advantages of this business form: Multiple choice question. Corporation Sole Proprietorship Partnership

Corporation

Which of the following are included in the duties of the board of directors? Manage the daily activities of the corporation. Appoint the members of the board of directors. Appoint officers to manage the corporation. Establish corporate policies.

Establish corporate policies. Appoint officers to manage the corporation

Blank activities include cash receipts and cash payments for transactions relating to revenue and expense activities.

Operating

BLANK capital is the amount of money paid into a company by its owners.

Paid in

Which of the following is included in the rights of common stockholders?

Right to vote on certain matters.

The number of shares issued represents the number of shares: Multiple choice question. sold repurchased sold less repurchased the company is allowed to sell

Sold

Which of the following represents the first step in preparing a statement of cash flows in the correct order? Multiple choice question. combine operating, investing, and financing activities calculate the net cash flows from operating activities determine the net cash flows from investing activities determine the net cash flows from financing activities

calculate the net cash flows from operating activities

Which of the following are common noncash items requiring adjustment to net income under the indirect method? prepaid expense depreciation expense salaries expense insurance expense amortization expense

depreciation expense amortization expense