1. Monroe Corporations retained earnings increased $200,000 from last period. Also during the period the corporation declared and paid $37,500 in dividends. What was Monroe's net income for the period?
a. $37,500 b. $162,500 c. $200,000 d. $237,500 e. Some other answer.
2. Mary Corporation has assets and liabilities of $30,000 and $24,000 respectively. During the period Mary C. issued additional common stock for $4,000 in cash and paid dividends of $1,000 during the period. At the end of the period what is the balance in the stockholder's equity section of the balance sheet?
a. $30,000 b. $24,000 c. $9,000 d. $27,000 e. Some other answer.
3. Wilson Company reported a balance in Accounts Receivable of $81,000 on 1/1, 1996. During 1996 Wilson collected $255,000 from its customers who had purchased on account. On 12/31 1996, Wilson reported a balance in Accounts Receivable of $42,500. How much was Wilson's credit sales for 1996?
a. $216,500 b. $259,000 c. $293,500 d. $297,500 e. Some other answer.
4. The major components of the statement of cash flows include the following:
a. Cash flow from operations, cash flow from investing, and cash flow from financing. b. Cash flow from operations, other sources of cash, and other uses of cash. c. Sources of cash from investments, uses of cash for financing activities, and other cash transactions. d. Cash received from customers, cash paid to customers, and other sources of cash. e. Some other answer
5. In computing the quick (acid) ratio which of the following items is customarily excluded from the numerator?.
a. Cash b. Inventory c. Marketable Securities d. Accounts Receivable e. Some other answer.
6. White, Inc. issued bonds on 1/1 1995 which mature in 10 years. The $100,000 bonds, which pay 8 percent interest annually on 12/31 1995, were issued at a time when the market interest rate was 10 percent. The bonds were issued for $87,710. What amount of bond interest expense would White report in 1995?
a. $10,000 b. $8,000 c. $8,771 d. $8,848 e. Some other answer.
7. During 1995 the Winterline Company had net income of $312,000. In addition, selected additional facts are also given:
a. $334,000 b. $322,000 c. $320,000 d. $324,000 e. Some other answer.
8. Lang, Inc. issued bonds on 1/1/95 which mature in 10 years. The $100,000 bonds, which pay 9 percent interest annually on 12/31/95 were issued at a time when the market interest rate was 11 percent. The bonds were issued for $88,220. At the end of 1995 how much of the Bond Discount will be amortized using the effective interest method?
a. $-0- b. $1,060 c. $704 d. $356 e. Some other answer.
9. The Pushee Co. owns machinery having a cost of $100,000 and accumulated depreciation of $60,000 on January 1, 1995. Pushee has owned the machine for 6 years and used straight-line depreciation. If Pushee sells the asset on January 1, 1996 for $50,000, how much should Pushee report as a gain or loss on the sale?
a. $-0- b. $20,000 c. $10,000 d. $30,000 e. Some other answer.
10. The Ashcraft Company issued $200,000 par-value bonds several years ago. On January 1 of 1995 the bond premium account has a balance of 12,000 when the bonds are called at 104. What is the amount of the gain or loss on the retirement of the bonds?
a. $1,000 b. $3,000 c. $-0- d. $4,000 e. Some other answer.