Week 4 Midterm

Week 4 : Internal Control, Cash, and Receivables - Midterm

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Question 1.1. (TCOs A, B, and C) Shareholders want answers to all of the following questions except: (Points : 3) How does the company compare in profitability with competitors? Did the company meet its operating expense budget? Will the company be able to pay its liabilities as they come due? Is the company earning a satisfactory return?

Question 2.2. (TCO C) Paying back long-term debt is an example of a(n) (Points : 3) non-cash investing activity. investing activity. financing activity. operating activity.

Question 3.3. (TCO C) Buying a new plant would be an example of which type of activity? (Points : 3) Operating Financing Investing None of the above

Question 4.4. (TCO A) On a classified balance sheet, prepaid expenses are classified as (Points : 3) property, plant, and equipment. long-term investments. intangible assets. current assets.

Question 5.5. (TCO B) For 2012, LBJ Corporation reported net income of $25,000; net sales $250,000; and weighed average shares outstanding of 5,000. There were no preferred stock dividends. What was the 2012 earnings per share? (Points : 3) $50.00 $5.00 $2.50 $25.00

Question 6.6. (TCO D) Which of the following accounts has a normal balance of a credit? (Points : 3) Dividends account Expense account Accounts Receivable account Retained Earnings account

Question 7.7. (TCO E) The accrual accounting term used to indicate an item paid in advance or the receipt of cash in advance is (Points : 3) prepayment. depreciation. deferral. accrual.

Question 8.8. (TCOs A and B) Specific identification would not likely be used by which of the following businesses? (Points : 3) A hardware store A jewelry store An