98.Which of the following transactions would result in a decrease in the current ratio?
A. Collection of cash from an account receivable.
B. Selling shares of stock to stockholders in exchange for cash.
C. Purchasing a delivery vehicle by signing a long-term note payable.
D. Purchasing land by paying cash.
99.Which of the following account balances would not be included in the calculation of the current ratio?
A. Accounts receivable.
B. Short-term notes payable.
C. Equipment.
D. Supplies.
100.Which of the following statements does not properly describe the current ratio?
A. It measures the ability of a firm to pay its debts in the short-run.
B. It is current assets divided by current liabilities.
C. It is a measure of a firm's short-run liquidity.
D. It measures a firm's ability to pay its long-term debts as they mature.
101.The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $48,000;
Supplies $6,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Common stock $180,000;
Retained earnings $60,000.
What are Pioneer's total current assets?
A. $48,000.
B. $96,000.
C. $90,000.
D. $42,000.
102.The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $48,000;
Supplies $6,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Common stock $180,000;
Retained earnings $60,000.
What are Pioneer's total current liabilities?
A. $44,000.
B. $34,000.
C. $48,000.
D. $140,000.
103.The Pioneer Company has provided the following account balances:
Cash $38,000;
Short-term investments $4,000;
Accounts receivable $48,000;
Supplies $6,000;
Long-term notes receivable $2,000;
Equipment $96,000;
Factory Building $180,000;
Intangible assets $6,000;
Accounts payable $30,000;
Accrued liabilities payable $4,000;
Short-term notes payable $14,000;
Long-term notes payable $92,000;
Common stock $180,000;
Retained earnings $60,000.
What is Pioneer's current ratio?
A. 2.00.
B. 2.17.
C. 2.71.
D. 1.00.
104.At the beginning of April, Warren Corporation's assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:
Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan.
How much are Warren's total assets at the end of April?
A. $335,000.
B. $249,000.
C. $345,000.
D. $250,000.
105.At the beginning of April, Warren Corporation's assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:
Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan.
How much are Warren's total liabilities at the end of April?
A. $145,000.
B. $155,000.
C. $165,000.
D. $135,000.
106.Tiger Company's total stockholders' equity at the beginning of the year was $175,000. During the year Tiger reported the following:
Net income of $79,000.
Dividend declarations totaling $17,000.
Issued stock to stockholders in exchange for $42,000 cash.
Borrowed $20,000 from a stockholder.
What is Tiger's total stockholders' equity at the end of the year?
A. $296,000.
B. $279,000.
C. $290,000.
D. $273,000.
107.ABC Company's total stockholders' equity at the beginning of the year was $200,000. During the year ABC reported the following:
Net loss of $30,000.
Stock issued in exchange for land totaling $80,000.
Collections of accounts receivable $40,000.
Dividends declared and paid totaling $2,000.
What is ABC's total stockholders' equity at the end of the year?
A. $348,000.
B. $288,000.
C. $248,000.
D. $168,000.
