Question

1)

Everyday Electronics Company reported the following data for a particular period: Average total assets $760,000 Average total liabilities 485,000 Total revenue 200,500 Total expenses 135,000 The return on equity ratio is closest too:

Select one:

a. 25.0%

b. 8.4%

c. 23.8%

d. 13.2%

2)

Which of the following is reported as a cash flow from financing activities?

Select one:

a. Acquiring land by signing a note payable.

b. Purchasing shares of stock of another company using cash.

c. Cash payment of interest expense.

d. Paying cash to stockholders for dividends.

3)

All of the following are conditions necessary for financial statement fraud to occur under the Fraud Triangle except:

Select one:

a. The existence of a system of internal controls

b. Incentive and Opportunity to Commit Fraud

c. Rationalization

d. Undue pressure

4)

On December 15, 2013, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2014 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2013, Cross Corporation should:

Select one:

a. not prepare a journal entry because the event had no effect on the corporation's financial position until 2014.

b. decrease retained earnings $1.6 million and increase liabilities by $1.6 million.

c. decrease cash $1.6 million and decrease retained earnings $1.6 million.

d. decrease retained earnings $1.6 million and increase expenses $1.6 million.

Answer 1