1. Current liabilities are (Points : 2)

due but not receivable for more than one year. due but not payable for more than one year. due and receivable within one year. due and payable within one year.

2. What options does a business have when financing operations? (Points : 2)

Debt financing Equity financing Asset financing Both debt financing and equity financing

3. The liability for a dividend is recorded on which of the following dates? (Points : 2)

The date of record The date of payment The date of announcement The date of declaration

4. Payroll taxes levied against employees become liabilities (Points : 2)

the first of the following month. at the time the liability for the employee's wages is paid. when earned by the employee. at the end of an accounting period.

5. Gross earnings for a payroll period less payroll deductions are referred to as (Points : 2)

overtime pay. bonus pay. gross pay. net pay.

6. The primary purpose of a stock split is to (Points : 2)

increase paid-in capital. reduce the market price of the stock per share. increase the market price of the stock per share. increase retained earnings.

7. The par value per share of common stock represents (Points : 2)

the minimum selling price of the stock established by the articles of incorporation. the minimum amount the stockholder will receive when the corporation is liquidated. the monetary amount assigned to each share of stock in the articles of incorporation. the amount of dividends per share to be received each year.

8. Which of the following would most likely be classified as a current liability? (Points : 2)

Two-year notes payable Bonds payable Mortgage payable Unearned rent

9. A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be (Points : 2)

200,000 shares. 50,000 shares. 250,000 shares. 12,500 shares.

10. Where is interest expense listed on the income statement? (Points : 2)

Other expense section Cost of merchandise sold Operating expenses Interest expense is on the balance sheet, not the income statement.