Question : 71. Superior has provided the following information for its recent year : 1228514

71. Superior has provided the following information for its recent year of operation:
? The common stock account balance at the beginning of the year was $20,000 and the year-end balance was $25,000.
? The additional paid-in capital account balance increased $2,500 during the year.
? The retained earnings balance at the beginning of the year was $75,000 and the year-end balance was $91,000.
? Net income was $26,000.
How much did Superior sell its common stock for during the year? 
A. $5,000.
B. $2,500.
C. $7,500.
D. $25,000.

72. Huron has provided the following year-end balances:
? Cash, $25,000
? Patents, $7,900
? Accounts receivable, $9,300
? Property, plant, and equipment, $98,700
? Prepaid insurance, $3,600
? Accumulated depreciation, $10,000
? Inventory, $37,000
? Trademarks, $12,600
? Goodwill, $11,000
How much are Huron’s current assets? 
A. $85,900.
B. $71,300.
C. $74,900.
D. $102,100.

73. Huron has provided the following year-end balances:
? Cash, $25,000
? Patents, $7,900
? Accounts receivable, $9,300
? Property, plant, and equipment, $98,700
? Prepaid insurance, $3,600
? Accumulated depreciation, $10,000
? Inventory, $37,000
? Trademarks, $12,600
? Goodwill, $11,000
How much are Huron’s net noncurrent assets? 
A. $122,300.
B. $120,200.
C. $123,800.
D. $112,300.

74. Which of the following would not be included on an income statement? 
A. Accumulated depreciation
B. Insurance expense
C. Cost of goods sold
D. Extraordinary loss

75. Which of the following would not be included within the operations section of a cash flow statement? 
A. Cash paid for research and development.
B. Cash paid for insurance.
C. Cash paid for interest expense.
D. Cash paid to legalize a patent.

76. Which of the following would not be added to net income in the determination of net cash flow from operations? 
A. An increase in accounts payable.
B. A decrease in accounts receivable.
C. A decrease in prepaid expenses.
D. An increase in inventory.

77. Which of the following statements is true? 
A. Accumulated depreciation is the amount of depreciation on the income statement for the current year only.
B. Current liabilities are debts expected to be paid within the next year.
C. Current assets are resources of a company that might include cash and copyrights.
D. Patents, copyrights, and research and development expense are classified as intangible assets on the balance sheet.

78. Which of the following statements is false? 
A. Accumulated depreciation is a contra-account on the balance sheet.
B. A stock’s par value represents the minimum selling price of the stock.
C. Retained earnings is the accumulated net income less the accumulated dividends declared.
D. Research and development costs for a patent are reported on the balance sheet.

79. Centex, Inc. issued 50,000 shares of its $1 par value common stock for $20 per share. The journal entry to record the stock issue would include which of the following? 
A. A credit to cash for $1,000,000.
B. A credit to additional paid-in capital for $1,000,000.
C. A credit to additional paid-in capital for $50,000.
D. A credit to common stock for $50,000.

80. Which of the following transactions results in a decrease in the return on assets ratio? 
A. Increasing the sales price of the products sold.
B. An increase in the net profit margin ratio.
C. Purchasing land by signing a long-term note payable.
D. Collecting cash from an account receivable.