Question 1.1. (TCO A) Assets include (Points : 3)

prepaid insurance and prepaid rent. dividends paid to shareholders. loans obtained by the company. stockholders investment in the business.

Question 2.2. (TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? (Points : 3)

$100.00 $150.00 $10.00 $15.00

Question 3.3. (TCO C) Purchasing inventory is an example of a(n) (Points : 3)

operating activity. investing activity. financing activity. noncash investing and financing activity.

Question 4.4. (TCO D) Dividends declared are reported on which of the following statements? (Points : 3)

Income Statement Statement of Retained Earnings Balance Sheet Statement of Financial Position

Question 5.5. (TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account? (Points : 3)

Credit, liability Debit, liability Debit, stockholders equity Credit, stockholders equity

Question 6.6. (TCO F) The accrual accounting term used to indicate recording an expense before paying cash for the item is (Points : 3)

deferral. accrual. depreciation. prepayment.

Question 7.7. (TCO A) LBJ Company recorded the following events involving a recent purchase of merchandise. - Received goods for $95,000, terms 2/10, n/30. - Returned $4,500 of the shipment for credit due to damaged goods. - Paid $1,000 for freight in. - Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory (Points : 3)

increased by 89,580. increased by $89,690. increased by $89,600. increased by $91,500.

Question 8.8. (TCO B) In a period of declining prices, which of the following inventory methods generally results in the highest gross profit figure? (Points : 3)

Average cost method LIFO FIFO Cannot be determined based on the information given

Question 9.9. (TCO A) On a classified balance sheet, which is the least liquid asset listed below? (Points : 3)

Inventories Cash and cash equivalents Accounts receivable, net Short-term investments

Question 10.10. (TCO E) Which of the following is a component of internal control? (Points : 3)

Safeguard assets Limited access Risk assessment Encourage employees to follow company policies.