1.

Which account has a normal debit balance?

Select one:

a. Preferred Stock

b. Purchases

c. Accumulated Depreciation

d. Unearned Revenue

e. Dividends Payable

2.

Which item is initially capitalized and then expensed based on its use?

Select one:

a. Period Costs

b. Wages Payable

c. Accounts Receivable

d. Fixed Asset

3.

Blue Heron Company, with an applicable income tax rate of 30%, computed after-tax Net Income of $400,000. However, Blue Heron failed to recognize pre-tax Wage Expense of $2,000 and Interest Revenue of $5,000 in its computation. The company's final Net Income is:

Select one:

a. $402,100

b. $402,900

c. $397,900

d. $397,100

e. $403,000

4.

Given the following: The amount to be disclosed as EPS will be:

Select one:

a. $3.40

b. $1.76

c. $2.20

d. $3.60

e. $1.70

Weighted Average of Common Shares Outstanding 12/31 Common Shares Outstanding Net Income before taxes Cash Dividends to Common Shareholders Cash Dividends to Preferred Shareholders Tax Rate 100 200 $500 $100 $60 20%