Week 8 Final Exam Set 11. Question: (TCO A) An advantage of the corporate form of business is that _____. (Points : 5)2. Question: (TCO A) When a corporation distributes a dividend _____. (Points : 5)3. Question: (TCOs A B) Below is a partial list of account balances for Denton Company:4. Question: (TCOs B E) A small and private company may be able to justify using a cash basis of accounting if it has _____. (Points : 5)5. Question: (TCO D) In a period of increasing prices which inventory cost flow assumption will result in the lowest amount of income tax expense? (Points : 5)6. Question: (TCOs A E) Equipment was purchased for $60 000. Freight charges amounted to $2 800 and there was a cost of $8 000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $12 000 salvage value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be _____. (Points : 5)7. Question: (TCOs D G) Lopez Corporation issues 500 ten-year 8% $1 000 bonds dated January 1 2007 at 96. The journal entry to record the issuance will show a _____. (Points : 5)8. Question: (TCO C) Accounts receivable arising from sales to customers amounted to $35 000 and $40 000 at the beginning and end of the year respectively. Income reported on the income statement for the year was $120 000. Exclusive of the effect of other adjustments the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)9. Question: (TCO F) Which one of the following is not a tool in financial statement analysis? (Points : 5)10. Question: (TCO F) In vertical analysis the base amount for studying salary and wages expense is generally _____. (Points : 5)11. Question: (TCO F) Ratios are most useful in identifying _____. (Points : 5)12. Question: (TCO F) A common measure of liquidity is _____. (Points : 5)13. Question: (TCO F) Return-on-assets ratio is most closely related to _____. (Points : 5)14. Question: (TCO G) To calculate the market value of a bond we need to _____. (Points : 5)
