Posted on

Multiple Type Questions_income statement does not report net of income taxes or net of income tax savings

Multiple Type Questions_income statement does not report net of income taxes or net of income tax savings

Multiple Type Questions_income statement does not report net of income taxes or net of income tax savings

Multiple Type Questions_income statement does not report net of income taxes or net of income tax savings

1. Which section of the income statement does not report net of income taxes or net of income tax savings?
A. Continuing operations section
B. Extraordinary items section
C. Discontinued operations section
D. Cumulative effect of changes in accounting principles section

2. Patty’s Baker has cost of goods sold for the years 2011, 2010 and 2009 respectively of $28,600, $26,900 and $25,600. IF 2009 is the base year, the trend percentage for 2011 is

A. 11.72%
B. 105.08%
C. 5.08%
D. 111.72%

3. Rick Company’s net sales decreased from $90,000 in year 1 to $45,000 in year 2, and its cost of goods sold decreased from $30,000 in year 1 to $20,000 in year 2. Vertical analysis based on sales would show which decreases in cost of goods for the 2 periods
A. 33.3% and 44.4%
B. 225% and 300%
C. 300% and 225%
D. 44.4 and 33.3%

4. What is the rate of return on common stockholder’s equity if sales are $100,000, net income is $22,700 and average common stockholders’ equity is $86,000?
A. 22.7%
B. the rate of return can’t be determined from the information given.
C. 86.0%
D. 26.4%

9. If Rick’s net sales increased from $40,000 to $80,000 and its operating expenses increased from $30,000 to $50,000, then vertical analysis based on net sales would show of the following for operating expenses for the 2 periods
A. 160.0% and 133.3%
B. 75.0% and 62.5%
C. 62.5% and 75.0%
D. 133.3% and 160.0%

13. Casey Company has an accounts receivable turnover of 36 days, an inventory turnover of 77 days, and an accounts payable turnover of 40 days. Casey’s cash conversion cycle is?
A. 1
B. 81
C. 73
D. 153

14. Casey Company has a $2400 credit balance in Paid-in Capital- Treasury Stock. It sells 500 shares of treasury stock that the company reacquired at $21/share, for $18/share. After the transaction, what will the balance be in the Paid-In Capital in Excess of Par-Treasury account?
A. $3,900 credit
B. $900 credit
C. $900 debit
D. $1,500 debit

16. Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan’s cash conversion cycle is?
A. 121 days
B. 9 days
C. 43 days
D. 103 days

17. Tammy Corporation has 350,000 shares of $3 par common stock outstanding. IT has declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be debited to retained earnings on the date of declaration is:
A. 52,500
B. 183,750
C. 131,250
D. 78,750

18. Isaiah Corporation’s Accounts Receivable increased by $35,000 and its Accounts Payable decreased by $18,000. What is the net effect on cash from operations under the indirect method?
A. +$35,000
B. +$17,000
C. -$53,000
D. -$18,000

20. The records of Ashley Boutique showed a net loss of $30,000; depreciation expense of $25,000; and an increase in supplies on hand of $5,000. The amount of net cash flow from operating activities using the indirect method is
A. ($15,000)
b. $15,000
C. $20,000
D. ($10,000)

For instant digital download of the above solution, Please click on the “PURCHASE” link below to get the tutorial for Multiple Type Questions_income statement does not report net of income taxes or net of income tax savings

For instant digital download of the above solution or tutorial, please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link.

In case you find any problem in getting the download link or downloading the tutorial, please send us an email on mail@genietutorial.com