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Abd Sample Exam

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Submitted By jecylin
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The following information was provided by BlockBuster, Inc. for its year ending December 31, 2008:

| Economic resources at yearend |$42,000,000 |
| Net income for 2008 |2,500,000 |
| Shareholders' equity at yearend |17,500,000 |

How much does BlockBuster owe its creditors at December 31, 2008? A. $24,500,000 B. $20,000,000 C. $39,500,000 D. $27,000,000

1. Which of the following will lead to a decrease in financial leverage? A. Purchased equipment to be used in the business for $5,000 cash B. Received cash totaling $5,000 from investors in exchange for capital stock C. Paid $5,000 cash to shareholders for dividends D. Borrowed $5,000 from a bank to be repaid in 2 years

2. Which one of the following is considered to be a financing activity for Sam’s Club? A. Purchasing store shelving for cash B. Paying dividends to shareholders C. Collecting amounts due from customers who had previously charged on account D. Paying interest on long-term notes payable

3. Which one of the following statements is correct concerning debits and credits? A. Debit means decrease and credit means increase. B. Debit means increase and credit means decrease. C. A credit to an asset account decreases the account. D. For every debit to an asset account, there must be an offsetting credit to an asset account.

Kimberly-Clark presented the following financial information for 2008 and 2007 (all amounts in thousands):

| |December 31 |
| | 2008 | 2007

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