The inventory data for an item for June are:

June	01	Inventory	20 units at $10
	08	Sold	10 units
	13	Purchased	30 units at $12
	21	Sold	20
	30	Purchased	10 units at $15

Under a perpetual system, what is the cost of the merchandise inventory of 30 units on June 30 using the first-in, first-out method?

Select one:

a. $310

b. $320

c. $380

d. $390

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The inventory data for an item for June are:

June	01	Inventory	20 units at $10
	08	Sold	10 units
	13	Purchased	30 units at $12
	21	Sold	20 units
	30	Purchased	10 units at $15

Under a perpetual system, what is the cost of the merchandise inventory of 30 units on June 30 using the last-in, first-out method?

Select one:

a. $310

b. $380

c. $370

d. $390

A proprietorship, when obtaining credit, will have:

Select one:

a. Liability only to the extent of investment in the business

b. No liability as a person or as a business

c. Liability to the extent of business assets owned

d. Unlimited personal liability

The debt to equity ratio is a:

Select one:

a. Liquidity ratio

b. Leverage ratio

c. Profitability ratio

d. a and c are correct

Under what type of corporation do the shareholders agree to have the profits of the corporation taxed directly to them rather than the corporation?

Select one:

a. S Corporation

b. Close Corporation

c. C Corporation

d. Private Corporation

Why is the amount of debt in a companys capital structure important to the financial analyst?

Select one:

a. Debt implies risk

b. Debt is less costly than equity

c. Equity is riskier than debt

d. Debt is equal to total assets