90. Which of the following accounts would be closed at the end of the accounting period?
A. Accounts Receivable
B. Unearned Consulting Fees
C. Fees Earned
D. Retained Earnings
E. Land
91. A company had $7,000,000 in net income for the year. Its net sales were $11,200,000 for the same period. Calculate its profit margin.
A. 17.5%
B. 28%
C. 62.5%
D. 160%
E. $18.2 million
$7,000,000/$11,200,000 = 62.5%
92. Compute profit margin ratio given the following information.
Cost of Goods Sold $28,000
Net Income 21,400
Gross Profit 400,000
A. 5%
B. 7%
C. 1.65%
D. 6.64%
E. 76.42%
Gross Profit + Cost of Goods Sold = Net Sales
93. Compute profit margin ratio given the following information.
Cost of Goods Sold $53,000
Net Income 60,000
Gross Profit 800,000
A. 6.63%
B. 7.03%
C. 93.8%
D. 6.2%
E. 88.33%
Gross Profit + Cost of Goods Sold = Net Sales
94. The current ratio:
A. Is used to measure a company's profitability
B. Is used to measure the relation between assets and long-term debt
C. Measures the effect of operating income on profit
D. Is used to help evaluate a company's ability to pay its short-term obligations
E. Is calculated by dividing current assets by equity
95. Which of the following accounts would not be on the post closing trial balance?
A. Accounts Payable
B. Accounts Receivable
C. Common Stock
D. Dividends
E. Retained Earnings
96. On June 30, 2009, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment.
On June 30, 2009 Apricot should record:
A. A credit to an expense for $5,000
B. A debit to an expense for $5,000
C. A credit to a prepaid expense for $5,000
D. A debit to a prepaid expense for $5,000
E. A debit to Cash for $5,000
97. On June 30, 2009, Apricot Co. paid $5,000 cash for management services to be performed over a two-year period. Apricot follows a policy of recording all prepaid expenses to asset accounts at the time of cash payment.
The adjusting entry on December 31, 2009 for Apricot would include:
A. A debit to an expense for $1,250
B. A debit to a prepaid expense for $1,250
C. A credit to an expense for $3,750
D. A debit to a prepaid expense for $3,750
E. A credit to a liability for $1,250
$5,000 x 6/24 = $1,250
98. Which of the following is true of accrued revenues?
A. At the end of one accounting period often result in cash
receipts
from customers in the next period
B. At the end of one accounting period often result in cash
payments
in the next period
C. Are also called unearned revenues
D. Are listed on the balance sheet as liabilities
E. Are recorded at the end of an accounting period because cash has already been received for revenues earned
99. An account linked with another account that has an opposite normal balance and that is subtracted from the balance of the related account is a(n):
A. Accrued expense
B. Contra account
C. Accrued revenue
D. Intangible asset
E. Adjunct account