1. If there is a difference between in the balance of Marketable Securities and their current

market value, which account should be used for adjustment? ________________________

2. Which of the following valuation principle is applied to Inventories?

a. Current Market Value

b. Par Value

c. Net Realizable Value

d. LCM

3. On June 1 Aspen Corp. has outstanding 200.000 shares of $1 par value of common stock

with a market value of $5 per share. On this date company declared and distributed a 5% stock

dividend. Which of the following accounting treatment is correct regarding this transaction?

a. Cash accounts is debit $50K.

b. Capital Stock is debit $50K

c. Retained Earnings is debit $10K.

d. Retained Earnings is debit $50K.

4. CBA Corp. has 100.000 outstanding shares par value $1 and 50.000 preferred shares par

value $10, additional paid-in capital 250.000$, legal reserves $200.000. Total assets of company

$1.400.000 and total liabilities are $300.000. According to this information, how much retained

earnings CBA has?

__________________________________

5. According to income statement and balance sheet of April Corp in 2010. Net sales are

$200.000, and Accounts Receivable is $90.000 in 2010 and $10.000 in 2009. How much cash

collected from customers in 2010?

6. _________________ is used as starting item in preparation of the cash flows statement by

indirect method?

7. Which of the following is not a section in Cash Flows Statement?

a. Operating Activities

b. Financing Activities

c. Investing Activities

d. Selling Activities

8. Which ratio is used to measure liquidity of a company?

_________________________.

9. Operating Income/Average Total Assets is used to measure ___________________.

10. Net Income/Average shares of outstanding capital gives following.

a. Earnings per share

b. Return on Equity

c. Return on Asset

d. Dividend yield