A. Acid test ratio
B. Cash ratio
C. Current ratio
D. Meaningless
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Analysis of Financial Statements MCQs
Analysis of Financial Statements Quiz Outline
The ratio of total cash, net receivables and marketable securities to current liabilities is _____?
If the investor company owns 30% of the stock of the investee company and the investee company reports profits of $150,000, then the investor company reports equity income of _____?
A. $25,000
B. $35,000
C. $45,000
D. $50,000
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Which of the following items would be classified as operating revenue or expense on an income statement of a manufacturing firm?
A. Interest expense
B. Advertising expense
C. Equity income
D. Dividend income
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Treasury stock is best classified as ____?
A. Current liability
B. Current asset
C. Reduction in stockholder’s equity
D. Contra asset
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Which of the following accounts would NOT usually be classified as a current liability?
A. Accounts Payable
B. Wages Payable
C. Unearned Rent Income
D. Bonds Payable
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Which one of the followings accounts would NOT appear on conventional balance sheet?
A. Accounts receivable
B. Accounts payable
C. Patents
D. Gain on sale of land
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Audit opinion cannot by classified as which of the followings?
A. All purpose
B. Disclaimer of opinion
C. Adverse opinion
D. Qualified opinion
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Which one of the followings is a temporary account?
A. Cash
B. Insurance expense
C. Accounts receivable
D. Notes payable
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Identify the permanent account from the followings?
A. Revenue
B. Advertising expense
C. Accounts receivable
D. Dividends
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If assets are $40,000 and stockholders’ equity is $10,000, how much are liabilities?
A. $30,000
B. $50,000
C. $20,000
D. $60,000
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