Question :
151. Chou Co. has a net income of $43,000, assets at : 1257600
151. Chou Co. has a net income of $43,000, assets at the beginning of the year are $250,000 and assets at the end of the year are $300,000. Compute its return on assets.
A. 8.4%
B. 17.2%
C. 14.3%
D. 15.6%
E. 1.5%
152. U. S. government bonds are:
A. High-risk and high-return investments.
B. Low-risk and low-return investments.
C. High-risk and low-return investments.
D. Low-risk and high-return investments.
E. High risk and no-return investments.
153. Risk is:
A. Net income divided by average total assets.
B. The reward for investment.
C. The uncertainty about the return expected to be earned.
D. Unrelated to return expected.
E. Derived from the idea of getting something back from an investment.
154. The statement of cash flows reports all of the following except:
A. Cash flows from operating activities.
B. Cash flows from investing activities.
C. Cash flows from financing activities.
D. The net increase or decrease in assets for the period reported.
E. The net increase or decrease in cash for the period reported.
155. The basic financial statements include all of the following except:
A. Balance Sheet.
B. Income Statement.
C. Statement of Retained Earnings.
D. Statement of Cash Flows.
E. Statement of Changes in Assets.
156. The statement of retained earnings:
A. Reports how retained earnings changes at a point in time.
B. Reports how retained earnings changes over a period of time.
C. Reports on cash flows for operating, financing, and investing activities over a period of time.
D. Reports on cash flows for operating, financing, and investing activities at a point in time.
E. Reports on amounts for assets, liabilities, and equity at a point in time.
157. The financial statement that reports whether the business earned a profit and also lists the revenues and expenses is called the:
A.Balance sheet.
B.Statement of retained earnings.
C. Statement of cash flows.
D. Income statement.
E. Statement of financial position.
158. A balance sheet lists:
A. The types and amounts of the revenues and expenses of a business.
B. Only the information about what happened to equity during a time period.
C. The types and amounts of assets, liabilities, and equity of a business as of a specific date.
D. The inflows and outflows of cash during the period.
E. The assets and liabilities of a company but not the retained earnings.Answer: C
159. A financial statement providing information that helps users understand a company’s financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):
A. Balance sheet.
B. Income statement.
C. Statement of cash flows.
D. Statement of retained earnings.
E. Financial Status Statement.
160. The financial statement that identifies a company’s cash receipts and cash paymentsover a period of time is the:
A. Statement of financial position.
B. Statement of cash flows.
C. Balance sheet.
D. Income statement.
E. Statement of changes in stockholders’ equity.
