Question 1: The depreciation method currently used for tax purposes today is called the:
Question 2: Current liabilities would not include:
Question 3: On the income statement, net profit after tax is defined as:
Question 4: What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?
Question 5: The goal of a business should be:
Question 6: The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.
Question 7: The actual disbursement of cash is recorded in which of the following financial statements?
Question 8: Of the following forms of business organization, which have the advantage of limited liability but no stockholders?
Question 9: The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:
Question 10: Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?
Question 11: The equity multiplier is calculated as:
Question 12: Cost-volume-profit analysis can be used to estimate the firm's operating profits at different levels of:
Question 13: The ability of a firm to meet its short-term debt obligations as they come due is indicated by which of the following ratios:
Question 14: Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due?
Question 15: Which one of the following financial statements reports a firm's assets and the claims on assets?
Question 16: The _______________ ratio is computed as earnings before interest and taxes divided by interest expense:
Question 17: Which group of ratios might be most interesting to potential creditors of a firm?
Question 18: If a firm's variable cost per unit increases, the firm's operating breakeven point will
Question 19: A firm's sales forecast is usually based on
Question 20: The extent to which assets are financed by borrowed funds and other liabilities is indicated by: