Acct practice test

Acct practice test - 1. The balance sheet of Sound Designs...

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1. The balance sheet of Sound Designs reports total assets of $750,000 and $800,000 at the beginning and end of the year, respectively. Sales revenues are $1.5 million ($1.2 million in the previous year), net income is $150,000, and net cash flows from operating activities are $175,000. What is Sound Designs' cash return on assets? A. 21.9% B. 19.4% C. 22.6% D. 18.8% 2. Which of the following is true regarding FICA taxes? A. FICA taxes are paid only by the employee. B. FICA taxes are paid only by the employer. C. FICA taxes are paid in equal amounts by the employee and the employer. D. FICA taxes are paid in different amounts by the employee and the employer. 3. Which of the following is an example of a cash outflow from an investing activity? A. Payment of cash for the purchase of land. B. Payment of cash for treasury stock. C. Payment on a long-term note payable. D. Payment of cash for inventory. 4. The Viper retires a $40 million bond issue when the carrying value of the bonds is $42 million, but the market value of the bonds is $36 million. The entry to record the retirement will include: A. A debit to cash for $42 million. B. A credit of $6 million to a gain account. C. No gain or loss on retirement. D. A debit of $6 million to a loss account. 5. A feature common to both stock splits and stock dividends is A. There is no effect on total stockholders' equity. B. A reduction in the contributed capital of a corporation. C. An increase in total liabilities of a corporation. D. A transfer to earned capital of a corporation. Fall 2010 Exam 3 Page
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6. Given the items below, which of the following is a subtraction from net income to arrive at Operating Cash Flows using the indirect method? A. II. and III. B. I. and II. C. II. only D. IV. only 7. Operating cash flows exclude: A. Interest received. B. Interest paid. C. Dividends received. D. Dividends paid. 8. The price of a bond is equal to: A. the future value of the face amount plus the future value of the stated interest payments. B. the future value of the face amount only. C. the present value of the face amount plus the present value of the stated interest payments. D. the present value of the interest only.
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This note was uploaded on 10/10/2011 for the course ACCT 2103 taught by Professor Burnett during the Spring '08 term at Oklahoma State.

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Acct practice test - 1. The balance sheet of Sound Designs...

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