Question : 1. Which of the following not a form of a business : 1224847

1. Which of the following is not a form of a business entity? A. Sole proprietorshipB. PartnershipC. EntrepreneurshipD. Corporation

 

2. In which of the following organization forms are the owners’ legal responsibility for the debt of the business limited to the amount they invested in the business? A. Sole proprietorshipB. CorporationC. PartnershipD. Cooperative

 

3. Which of the following best describes the term “current assets”? A. The amount of total profits earned by a business since it began operations plus all other resources.B. The amount of claim that the owners have in the business in the current year.C. Assets expected to be converted into cash within one year or one.D. The cumulative profits earned by a business less any dividends distributed in the current period.

 

4. Which one of the following items is a classification on the classified balance sheet? A. Operating accountsB. Stockholders’ equityC. Revenues and expensesD. Net income and dividends

 

5. Which of the following are noncurrent assets? A. Machinery and equipmentB. Accounts receivableC. InventoriesD. Unearned revenues

 

6. Short-term investments are: A. fixed assets.B. accounts receivables.C. intangible assets.D. current assets.

 

7. IPOD CORPORATIONIPOD Corporation’s end-of-year balance sheet consisted of the following amounts. 

Cash

$   250,000

Accounts receivable

$500,000

Property, plant & equipment

900,000

Long-term debt

300,000

Capital stock

1,200,000

Accounts payable

100,000

Retained earnings

?

Inventory

450,000

 

 

 

 

Refer to the information provided for IPOD Corporation. What amount should IPOD report on its balance sheet for total assets? A. $2,000,000B. $2,550,000C. $2,100,000D. $1,900,000

 

8. IPOD CORPORATIONIPOD Corporation’s end-of-year balance sheet consisted of the following amounts. 

Cash

$   250,000

Accounts receivable

$500,000

Property, plant & equipment

900,000

Long-term debt

300,000

Capital stock

1,200,000

Accounts payable

100,000

Retained earnings

?

Inventory

450,000

 

 

 

 

Refer to the information provided for IPOD Corporation. What is IPOD’s retained earnings balance at the end of the current year? A. $   500,000B. $1,100,000C. $   400,000D. $1,200,000

 

9. Peck CompanyThe Peck Company reported the following items on its financial statements for the year ending December 31, 2012. 

Sales

$1,560,000

Cost of sales

$1,400,000

Selling, general and

 

Other expenses

30,000

administrative expenses

40,000

 

 

Dividends

10,000

Income taxes

25,000

 

 

 

 

Refer to the information provided for Peck Company. The income statement for Peck will report net income for the current year in the amount of: A. $545,000.B. $  65,000.C. $  85,000.D. $120,000.

 

10. Peck CompanyThe Peck Company reported the following items on its financial statements for the year ending December 31, 2012. 

Sales

$1,560,000

Cost of sales

$1,400,000

Selling, general and

 

Other expenses

30,000

administrative expenses

40,000

 

 

Dividends

10,000

Income taxes

25,000

 

 

 

 

Refer to the information provided for Peck Company. How much will be reported as retained earnings on its balance sheet at December 31, 2012, if this is the first year of operations? A. $45,000B. $55,000C. $85,000D. $65,000

 

 

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