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Review Test Submission: Week 1 - Short Quiz On Chapter 2 ( Graded Homework ) Due March 20th by 11:59 PM
Review Test Submission: Week 1 - Short Quiz On Chapter 2 ( Graded Homework ) Due March 20th by 11:59 PM
Review Test Submission: Week 1 - Short Quiz On Chapter 2 ( Graded Homework ) Due March 20th by 11:59 PM
Which one of the following is the financial statement that shows the
accounting value of a firm's equity as of a particular date?
Selected Answer: C.
balance sheet
Answers: A.
income statement
B.
creditor's statement
C.
balance sheet
D.
statement of cash flow
E.
dividend statement
Question 2
5 out of 5 points
The percentage of the next dollar you earn that must be paid in taxes is
referred to as the _____ tax rate.
Selected Answer: C.
marginal
Answers: A.
average
B.
mean
C.
marginal
D.
real
E.
fair
Question 3
5 out of 5 points
Which one of the following is included in a firm's market value but yet is
excluded from the firm's accounting value?
Selected Answer: B.
good reputation of the company
Answers: A.
real estate investment
B.
good reputation of the company
C.
equipment owned by the firm
D.
money due from a customer
E.
an item held by the firm for future sale
Question 4
5 out of 5 points
You recently purchased a grocery store. At the time of the purchase, the
store's market value was higher than its book value. The purchase included
the store name, building, the fixtures, and the inventory. Which one of the
following would more likely cause the market value of this store to be lower
than the book value?
Selected D.
Answer: construction of a new restricted access highway that prevents existing customers
from easily reaching the grocery store
Answers: A.
a sudden and unexpected increase in real estate values in the area
B.
stocking inventory items customers in the area desire
C.
improvements to the surrounding neighborhood by other store owners and
home owners
D.
construction of a new restricted access highway that prevents existing customers
from easily reaching the grocery store
E.
addition of a stop light at the main entrance to the store's parking lot
Question 5
10 out of 10 points
A firm has $520 in inventory, $1,860 in fixed assets, $190 in accounts
receivables, $210 in accounts payable, and $70 in cash. What is the amount
of the current assets?
Selected Answer: B.
$780
Answers: A.
$710
B.
$780
C.
$990
D.
$2,430
E.
$2,640
Question 6
10 out of 10 points
Given the tax rates as shown below, what is the tax for a firm with taxable
income of $311,360?
Taxable income over Not over Tax rate
$ 0 $ 50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
Selected Answer: B.
$104,680.40
Answers: A.
$46,704
B.
$104,680.40
C.
$125,365.45
D.
$97,658.45
E.
This company will not owe tax
Response Tax = .15($50,000) + .25($25,000) + .34($25,000) + .39($211,360) =
Feedback: $104,680.40
Question 8
10 out of 10 points
Given the tax rates as shown below, what is the average tax rate for a firm
with taxable income of $311,360?
Taxable income over Not over Tax rate
$ 0 $ 50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
Selected Answer: C.
33.62 percent
Answers: A.
28.25 percent
B.
31.09 percent
C.
33.62 percent
D.
35.48 percent
E.
39.00 percent
Response Tax = .15($50,000) + .25($25,000) + .34($25,000) + .39($211,360) =
Feedback: $104,680.40Average tax rate = $104,680.40/$311,360 = 33.62 percent
Question 9
10 out of 10 points
XYZ Company has a net loss of $100,000 for the year and pays dividends of
$30,000 to its shareholders. How will this impact Retained Earnings?
Selected Answer: C.
Retained earnings will decrease by $130,000.
Answers: A.
Retained earnings will decrease by $70,000.
B.
Retained earnings will decrease by $30,000.
C.
Retained earnings will decrease by $130,000.
D.
Retained earnings will decrease by $100,000.
E.
Retained earnings will not change.
Question 10
10 out of 10 points
XYZ Company has a net loss of $100,000 for the year and pays its
shareholders a dividend of $20,000. How will this impact retained earnngs?
Selected Answer: D.
Retained earnings will decrease by $120,000.
Answers: A.
Retained earnings will increase by $120,000.
B.
Retained earnings will increase by $80,000.
C.
Retained earnings will increase by $20,000.
D.
Retained earnings will decrease by $120,000.
E.
Retained earnings will not change.
Question 11
10 out of 10 points
Z Company has Current Assets of $500,000 and Current Liabilities of $400,000. What is the
companies Net Working Capital?
Selected Answer: B.
$100,000
Answers: A.
$99,000
B.
$100,000
C.
-$100,000
D.
-$90,000
Question 12
10 out of 10 points
Income Statement
Sales $235,000
Costs 141,000
Depreciation 17,300
EBIT $ 68,800
Interest 12,900
Taxable income $ 55,900
Taxes 19,565
Net income $ 36,335
Based on the above information, Operating Cash Flow
equals:
Selected Answer: A.
$66,535
Answers: A.
$66,535
B.
$56,500
C.
$75,000
D.
$450,000
Friday, May 12, 2017 4:27:20 PM EDT