Question

1) Which of the following reports is filed annually with the SEC?

Select one:

a. Form 10-K

b. Press Release

c. Form 8-K

d. Form 10-Q

2) Marino Company has provided the following information:

          Net sales, $480,000
          Net income, $24,000

          Interest Expense, $0
          Average total assets, $200,000

What is Marino's return on assets ratio?

Select one:

a. 12%

b. 42%

c. 5%

d. 240%

3) Examples of non-operating items that would appear on an income statement are:

Select one:

a. Income taxes, interest expense, loss on sale of investments.

b. Depreciation expense, interest income, interest expense.

c. Interest income, sales salaries, gain on sale of land.

d. Interest expense, gain on sale of equipment, loss on sale of investments.

4) Which of the following statements is correct?

Select one:

a. Revenue is recorded when title and risks of ownership transfer to the buyer.

b. Sales discounts are reported as cost of sales on an income statement.

c. Revenue is recognized at the time of shipment when goods are shipped FOB destination.

d. Sales returns and allowances are reported as operating expenses on an income statement.

Answer 1