Question :
71. Dividends A. are a period cost.B. are a distribution of assets to owners.C. enter : 1245893
71. Dividends
A. are a period cost.
B. are a distribution of assets to owners.
C. enter into the calculation of net income.
D. appear on both the balance sheet and income statement.
E. none of the above.
72. Which of the following is correct?
A. Retained Earnings normally has a debit balance.
B. Retained Earnings normally has a credit balance.
C. Retained Earnings is closed at the end of the fiscal year.
D. Retained Earnings is a nominal account.
E. None of these answer choices is correct.
73. At the end of the third year of operation, Forgione Corporation has total assets equal to $100,000, liabilities totaling $90,000, and contributed capital of $30,000. What is the balance in retained earnings?
A. $40,000 (Dr)
B. $40,000 (Cr)
C. $20,000 (Dr)
D. $20,000 (Cr)
E. $10,000 (Cr)
74. Revenues from marketable securities and investments in securities, interest expense on borrowings, and gains and losses from peripheral activities appear as _____. The firm expects these sources of earnings to continue.
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. retained earnings
E. paid-in-capital
75. Which section includes income derived from a firm’s primary business activities as well as from activities peripherally related to operations? (Assume the firm expects these sources of earnings to continue.)
A. income from continuing operations
B. income, gains, and losses from discontinued operations
C. extraordinary gains and losses
D. retained earnings
E. paid-in-capital
76. Shareholders of Augusta Corporation have received $35,000 in dividends in the current year. At year end the corporation has total assets of $500,000, total liabilities equal to $300,000, and contributed capital totaling $100,000. If retained earnings at the beginning of the year was $80,000, what was Augusta’s net income for the current year?
A. $80,000
B. $215,000
C. $55,000
D. $10,000
E. $45,000
77. The following balances have been excerpted from Bain balance sheets:
December 31, 2014December 31, 2013
Prepaid Insurance ……………………………..$ 6,000$ 7,500
Interest Receivable ……………………………3,70014,500
Salaries Payable ……………………………….61,50053,000
Bain Company paid or collected during 2014 the following items:
Insurance premiums paid …………………….$ 41,500
Interest collected ………………………………123,500
Salaries paid …………………………………….481,000
The salary expense on the income statement for 2014 was
A. $366,500.
B. $472,500.
C. $489,500.
D. $595,500.
E. None of these answer choices is correct.
78. Which of the following is not presented in an income statement?
A. Net Sales
B. Other Expenses
C. Net income
D. Dividends
E. Provision for Income Taxes
79. Which of the following is/are true?
A. The seller measures revenue as the amount of cash, or the cash-equivalent value of other assets, that it receives from customers.
B. The seller measures revenue amounts as the exchange price between buyer and seller at the time of sale.
C. If the firm has not performed all of its obligations, it may make adjustments in the form of sales discounts and allowances.
D. If the firm has not performed all of its obligations, it may make adjustments in the form of sales returns.
E. all of the above are true
80. Which of the following is not a period expense?
A. administrative expenditures
B. expenditures on advertising
C. expenditures on research
D. cost of goods sold
E. all of the above are period expenses
