Answer Happy

1-If there is a difference between in the balance of Marketable
Securities and their current
market value, which account should be used for adjustment?
________________________
2-_________________ is used as starting item in preparation of
the cash flows statement by
indirect method?
3- Which ratio is used to measure liquidity of a company?
_________________________.
4-. Operating Income/Average Total Assets is used to measure
___________________.
5-. Net Income/Average shares of outstanding capital gives
following.
a. Earnings per share
b. Return on Equity
c. Return on Asset
d. Dividend yield
6-. On 31 December 2015, ABC corporation’s credit balance of
income summary account is
$2,000,000. Tax rate is 20 % and company must allocate 5% of legal
reserves. How much legal
reserves will be added to shareholder’s equity?
_________________________________
7-. According to information given in question 34, which of the
following accounting treatment
is correct?
a. Tax payable is debit $400.000
b. Income summary is debit $1.600.000
c. Retained earnings is credit 1.520.000
d. Income summary is credit $ 1.600.000