Midterm - 1. (TCO A, B, C) External users want answers to...

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1. (TCO A, B, C) External users want answers to all of the following questions except: (Points : 3) Is the company earning satisfactory income? Will the company be able to pay its debts as they come due? Did the company use a budget to plan its expenses? How does the company compare in profitability with competitors? 2. (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called: (Points : 3) accounts payable. notes receivable. taxes payable. bonds payable. 3. (TCO C) Buying and selling products are examples of: (Points : 3) operating activities. investing activities. financing activities. delivering activities. 4. (TCO A) The best definition of assets is, the (Points : 3) cash owned by the company. collections of resources belonging to the company and the claims on these resources. Owners' investment in the business. resources belonging to a company that offer future benefits to the company. 5. (TCO C) Edwards Company recorded the following cash transactions for the year: Paid $45,000 for salaries. Paid $20,000 to purchase office equipment. Paid $5,000 for utilities. Paid $2,000 in dividends. Collected $75,000 from customers. What was Edwards' net cash provided by operating activities? (Points : 3) $25,000 $5,000 $30,000 $23,000 6. (TCO A) In a classified balance sheet, assets are usually classified as: (Points : 3) current assets; long-term assets; property, plant, and equipment; and tangible assets. current assets; long-term investments; property, plant, and equipment; and common stocks. current assets; long-term investments; and tangible assets. current assets; long-term investments; property, plant, and equipment; and intangible assets. 7. (TCO A) Which of the following is not considered an asset? (Points : 3) Equipment Dividends Accounts receivable Inventory 8. (TCO A) These are selected account balances on December 31, 2007.
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-Land (location of the corporation's office building) $200,000 -Land (held for future use) 300,000 -Corporate Office Building 1,200,000 -Inventory 400,000 -Equipment 900,000 -Office Furniture 200,000 -Accumulated Depreciation 600,000 What is the total NET amount of property, plant, and equipment that will appear on the balance sheet? (Points : 3) $1,900,000 $2,600,000 $2,200,000 $3,200,000 9. (TCO B) For 2010, Ford Corporation reported net income of $15,000; net sales $200,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2010 earnings per share? (Points : 3) $2.33 $0.10 $2.50 $33.34 10. (TCO B) Liondale Corporation had beginning retained earnings of $2,292,000 and ending retained
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Midterm - 1. (TCO A, B, C) External users want answers to...

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