84.If sales are $540,000, expenses are $440,000 and dividends are $50,000, Income Summary:
A. Will have a credit balance of $50,000.
B. Will have a debit balance of $50,000.
C. Will have a debit balance of $100,000.
D. Will have a credit balance of $100,000.
85.Refer to the information above. Net income for the period equals:
A. $11,600.
B. $22,000.
C. $22,500.
D. $36,750.
86.Refer to the information above. After closing the accounts, Retained Earnings at December 31 equals:
A. zero.
B. $14,500.
C. $22,000.
D. $22,500.
87.Refer to the information above. The total debits in the After-Closing Trial Balance will equal:
A. $23,500.
B. $31,000.
C. $50,750.
D. $58,250.
88.Which account will appear on an After-Closing Trial Balance?
A. Dividends.
B. Prepaid Expenses.
C. Retained Earnings, at the beginning of the period.
D. Sales.
89.Which account will
not
appear on an After-Closing Trial Balance?
A. Dividends.
B. Prepaid Expenses.
C. Unearned Revenue.
D. Retained Earnings, at the end of the period.
90.Which account appears on the After-Closing Trial Balance?
A. Service Revenue.
B. Unearned Revenue.
C. Dividends.
D. Retained Earnings, Beginning of Year.
91.Return on equity measures:
A. Solvency.
B. Profitability.
C. Leverage.
D. Both solvency and leverage.
92.Return on equity is calculated by:
A. Dividing net income by total revenue.
B. Dividing net income by average stockholders' equity.
C. Dividing net income by working capital.
D. Dividing dividends by stockholders' equity.
93.If current assets are $90,000 and current liabilities are $70,000, the current ratio will be:
A. 77%.
B. $20,000.
C. 1.3.
D. $160,000.