Question: Average common shares outstanding was 10,000
1. What is the total amount of working capital?
A) $32,000
B) $24,000
C) $12,000
D) $4,000
2. What is the debt to total assets?
A) 50 percent
B) 40 percent
C) 36.4 percent
D) 10 percent
3. What is the earnings per share?
A) $4.00
B) $2.00
C) $0.80
D) $2.40
4. What is the current ratio?
A) 2.75: 1
B) 2.5: 1
C) 2.00 : 1
D) 0.51: 1
5. Debt and obligations of a business are referred to as
A) equities.
B) liabilities.
C) assets.
D) expenses.
6. On a classified balance sheet, companies usually list current assets
A) in alphabetical order.
B) with the largest dollar amounts first.
C) in the order of acquisition.
D) in the order in which they are expected to be converted into cash.
7. To show how successfully your business performed during a period of time, you would report its revenues and expense in the
A) balance sheet.
B) retained earnings.
C) statement of cash flows.
D) income statement retained.
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Current assets
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$ 8,000
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Net income
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$ 20,000
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Current liabilities
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4,000
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Stockholders' equity
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24,000
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Average assets
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44,000
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Total liabilities
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16,000
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Total assets
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40,000
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