Question :
81. Which of the following account balances would not be included : 1228477
81. Which of the following account balances would not be included in the calculation of the current ratio?
A. Accounts receivable
B. Short-term notes payable
C. Contributed capital
D. Inventory
82. Which of the following statements does not properly describe the current ratio?
A. It measures the ability of a firm to pay its debts in the short-run.
B. It is current assets divided by current liabilities.
C. It is a measure of a firm’s short-run liquidity.
D. It measures a firm’s ability to pay its long-term debts as they mature.
83. The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $6,000;
Inventory $48,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Contributed capital $180,000;
Retained earnings $60,000.
What is Pioneer’s current ratio?
A. 2.00
B. 2.17
C. 2.71
D. 1.00
84. The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $6,000;
Inventory $48,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Contributed capital $180,000;
Retained earnings $60,000.
What are Pioneer’s total current assets?
A. $48,000
B. $96,000
C. $50,000
D. $42,000
85. The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $6,000;
Inventory $48,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Contributed capital $180,000;
Retained earnings $60,000.
What are Pioneer’s total current liabilities?
A. $44,000
B. $34,000
C. $48,000
D. $140,000
86. At the beginning of April, Warren Corporation’s assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:
Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was lent to an employee; the employee signed a six-month note in exchange for the loan.
How much are Warren’s total assets at the end of April?
A. $335,000
B. $249,000
C. $345,000
D. $250,000
87. At the beginning of April, Warren Corporation’s assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:
Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was lent to an employee; the employee signed a six-month note in exchange for the loan.
How much are Warren’s total liabilities at the end of April?
A. $145,000
B. $155,000
C. $165,000
D. $135,000
88. Tiger Company’s stockholders’ equity at the beginning of the year was $175,000. During the year Tiger reported the following:
Net income of $79,000.
Dividend declarations totaling $17,000.
Issued stock to stockholders in exchange for $42,000 cash.
Stockholders sold some of their stock to other stockholders for $11,000 cash.
What is Tiger’s stockholders’ equity at the end of the year?
A. $296,000
B. $279,000
C. $290,000
D. $273,000
89. Which of the following transactions will not change a company’s total stockholders’ equity?
A. Reporting of net income.
B. Issuing stock to stockholders in exchange for cash.
C. The declaration of a cash dividend.
D. The payment of a previously declared cash dividend.
90. Which of the following transactions would create a cash inflow from a financing activity?
A. Issuing shares of stock to stockholders in exchange for cash.
B. Selling a short-term stock investment in exchange for cash.
C. Selling used equipment which was a part of property, plant, and equipment.
D. The payment of an account payable.
