Apple Inc.   PE Ratio: 17.06 (As of Today)

Please see attachment. It is 11 questions which 10 are multiple choice and 1 short answer question

1.
Financial ratios help to analyze the company’s financial health. Go to Yahoo Finance and select
a company. Then, calculate at least one of the financial ratios that was discussed in your textbook
for that company.
2. The liabilities and owner’s equity of a company are $228,000 and $184,000, respectively.
Assets
should equal
A. $ 44,00 B. $ 412,000 C. $ 128,000 D. $ 84,000
3. Current assets are shown in
A. Income Statement B. Balance Sheet C. Statement of Cash flow D. Statement of Stockholder’s
Equity
4.Which of the following accounts would likely be included in an accrual adjusting entry?
A. Insurance Expense B. Prepaid Rent C. Tax Expense D. Unearned Rent
5. Use the adjusted trial balance for Stockton Company. Determine the current asset.
A. $12,150 B. $15,730 C. $7,630 D. $8,500
6. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts
receivable balance is $300,000 and credit sales are $1,300,000. An aging of accounts receivable
shows that approximately 5% of the outstanding receivables will be uncollectible. What
adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit
balance of $2,500 before adjustment?
A. Bad Debit Expense = 12,500
Allowance for Doubtful Accounts =12,500
B.
A. Bad Debit Expense =19,500
Allowance for Doubtful Accounts =19,500
C.
A. Bad Debit Expense =22,000
Allowance for Doubtful Accounts =22,000
D.
A. Bad Debit Expense =65,000
Allowance for Doubtful Accounts =65,000
7. Merchandise inventory at the end of the year is overstated. Which of the following
statements correctly states the effect of the error?
A. Owner’s equity is understated. B. Cost of merchandise C. Gross profit is overstated D. Net income is
understated.
8. Which of the following items that appeared on the bank reconciliation did not require a
journal entry?
A. bank service charges B. deposit in transit C. NSF checks D. a check for $630, recorded it the check
register for $360
9. On June 1, Aaron Company purchased equipment at a cost of $140,000 that has a
depreciable cost of $90,000 and an estimated useful life of five years and 30,000 hours, which
ends on December 31.
Using straight-line depreciation, calculate depreciation expense for the final (partial) year of
service.
A. $17, 500 B. $30,000 C. $12,500 D. $40,000
10. Anderson Co. issued a $55,000, 60-day, discounted note to National Bank. The discount
rate is 6%. At maturity, assuming a 360-day year, the borrower will pay
A. $53,000 B. $50,500 C. $55,000 C. $49,500
11. The journal entry a company records for the payment of interest, interest expense, and
amortization of bond discount is
A. debit Interest Expense, credit Cash and Discount on Bonds payable
B. debit Interest Expense, credit Cash
C. debit Interest Expense and Discount on Bonds Payable, credit Cash
D. debit Interest Expense, credit Interest Payable and Discount on Bonds