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Part I: Multiple Choice

Select the best response to each of the following multiple choice questions:

No. | Question Text | AnsA | AnsB | AnsC | AnsD | 1 | On December 31, the assets of a business include: Cash, $3,500, Accounts Receivable, $14,000, and Supplies, $1.050. The liabilities on December 31 total $7,600. The owner's equity on December 31 is: | $18,550 | $25,100 | $10,950 | $11,100 | 2 | Separate compatible units of an accounting package that are integrated to function together are defined as: | grids | cells | modules | spreadsheets | 3 | Current liabilities: | are due within one year or one operating cycle, whichever is longer | must be of a known amount | must be of an estimated amount | are subtracted from long-term liabilities on the balance sheet | 4 | The treasury stock account is shown on the balance sheet as a(n) | contra asset | contra stockholders' equity account | contra liability | liability | 5 | After the receipt of the stock dividend, a corporation's cost basis per share in the stock of the invested will: | increase | decrease | remain the same | impossible to determine without knowing the market value of the stock | 6 | Creditors use financial statement analysis to: | evaluate the company's dividend payment record | evaluate the company's stock | predict the amount of expected returns and assess the risks associated with those returns | none of the above | 7 | An example of an inventoriable cost is: | advertising expense | depreciation on office equipment | indirect labor | research costs | 8 | In a process costing system, the entry to record the use of direct materials in production would include a: | debit to finished goods inventory | debit to materials

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