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Question 1(1 point) Garden Pro Corporation has sales of $4,437,338;...

Question 1 (1 point)

 








Garden Pro Corporation has sales of $4,437,338; income tax of $468,826; the selling, general and administrative expenses of $205,212; depreciation of $383,065; cost of goods sold of $2,623,466; and interest expense of $128,679. Calculate the firm's net income?

Question 1 options:


1813872


30585


499411


628090

Question 2 (1 point)

 








Which of the following is a reason why a person would study finance?

Question 2 options:


Better understand the economic environment


Apply financial concepts to business situations


Improve management of personal finances


All of these answers

Question 3 (1 point)

 








Which of the following terms describes the protection of personal assets stemming from the corporate structure?

Question 3 options:


simple transference


articles of incorporation


limited liability


double taxation

Question 4 (1 point)

 








At what level is income taxed in the S corporation?

Question 4 options:


corporate


shareholder AND corporate


shareholder


none of these answers

Question 5 (1 point)

 








Which of the following is a legal characteristic of a general partnership?

Question 5 options:


There must be at least two business owners.


The partnership is taxed as a separate entity from its partners.


All of these answers.


Partners are not personally liable for the business's debts and obligations.

Question 6 (1 point)

 








What are the three central components of business ethics?

Question 6 options:


Practical, tangible and intangible.


Personal, managerial and organizational.


Moral, mission and strategy.


Personal, professional and corporate.

Question 7 (1 point)

 








Which of the following is a characteristic of a corporation?

Question 7 options:


The corporation must have an elected board of directors.


All of these answers


Shareholders are generally not personally liable for the business's obligations and liabilities.


The corporation is a separate taxable entity from its owners.

Question 8 (1 point)

 








Banana Box Corporation has sales of $4,137,947; income tax of $323,650; the selling, general and administrative expenses of $284,521; depreciation of $317,778; cost of goods sold of $2,593,591; and interest expense of $190,157. Calculate the amount of the firm's income before tax? 

Question 8 options:


751900


1259835


428250


618407

Question 9 (1 point)

 








Which of the following is the correct definition of the accounting equation?

Question 9 options:


Liabilities = Assets + Owner's Equity


Owner's Equity = Assets + Liabilities


Assets = Liabilities + Owner's Equity


Assets = Liabilities + Initial Owner's Equity

Question 10 (1 point)

 








Which of the following is NOT a characteristic of a sole proprietorship?

Question 10 options:


The owner is personally liable for the business's debt and obligations.


There is only one owner.


A sole proprietorship does not to elect board members.


The owner must file a separate tax return for the business.

Question 11 (1 point)

 








Evening Story Corporation has sales of $4,383,257; income tax of $557,691; the selling, general and administrative expenses of $296,793; depreciation of $363,135; cost of goods sold of $2,501,364; and interest expense of $174,946. Calculate the amount of the firm's gross profit.

Question 11 options:


489328


1047019


1,881,893


1221965

Question 12 (1 point)

 








Which of the following is a responsibility of a financial manager?

Question 12 options:


All of these answers


Ensuring the business has enough cash to pay its financial obligations.


Figuring out financial projections and whether a project is worth financing.


Managing the budget.

Question 13 (1 point)

 








Which of the following is NOT a correct way of calculating a liquidity ratio?

Question 13 options:


Operating Cash Flow Ratio = Current Liabilities / Operating Cash Flow


Current Ratio = Total Current Assets / Total Current Liabilities


Liquidity Ratio = Liquid Assets / Short-term Liabilities


Quick Ratio = (Current Asset - Inventories - Prepayments) / Current Liabilities

Question 14 (1 point)

 








Which of the following is NOT a way to calculate the debt to equity ratio?

Question 14 options:


(Assets - Equity) / Debt


Interest-Bearing Long-Term Debt / Equity


Debt / (Assets - Debt)


 

Debt / (Debt + Equity)

Question 15 (1 point)

 








Advantage First Corporation has sales of $4,378,400; income tax of $438,288; the selling, general and administrative expenses of $250,004; depreciation of $347,178; cost of goods sold of $2,947,762; and interest expense of $134,705. What is the amount of the firm's EBIT?

Question 15 options:


833,456


1430638


1083460


645172

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