Review Test Submission: Quiz 7
Content 
 
Instructions This quiz consist of 20 multiple choice questions. The first 10 questions cover the material in Chapter 13. The second 10 questions cover the material in Chapter 14. Be sure you are in the correct Chapter when you take the quiz.

•  Question 1
 The depreciation method currently used for tax purposes today is called the:
   
•  Question 2
 Current liabilities would not include:
  
•  Question 3
 On the income statement, net profit after tax is defined as:

•  Question 4  
 What would be recorded in the common stock account on the balance sheet if 20,000 shares are issued at a par value of $2 and the market value is $5?
 
•  Question 5
 The goal of a business should be:
 
•  Question 6
 The term ___________ conveys a relationship of equality between the assets of the business and the sources of funds for their acquisition.
 
•  Question 7
 The actual disbursement of cash is recorded in which of the following financial statements?
 
•  Question 8  
 Of the following forms of business organization, which have the advantage of limited liability but no stockholders?
 
•  Question 9
 The average tax rate on a corporation with $75,000 in income and a tax liability of $15,000 is:
 
•  Question 10  
 Which of the following business organizations limit the liability of some or all of their owners to the extent of their investment in the company?

•  Question 11  
 The equity multiplier is calculated as:
 
•  Question 12
 Cost-volume-profit analysis can be used to estimate the firm’s operating profits at different levels of:
 
•  Question 13
 The ability of a firm to meet its short-term debt obligations as they come due is indicated by which of the following ratios:
 
•  Question 14
 Which one of the following types of ratios indicates the ability to meet short-term obligations to creditors as they come due?
 
•  Question 15
 Which one of the following financial statements reports a firm’s assets and the claims on assets?
 
•  Question 16
 The _______________ ratio is computed as earnings before interest and taxes divided by interest expense:
 
•  Question 17  
 Which group of ratios might be most interesting to potential creditors of a firm?
   
•  Question 18
 If a firm’s variable cost per unit increases, the firm’s operating breakeven point will
 
•  Question 19
 A firm’s sales forecast is usually based on
 
•  Question 20
 The extent to which assets are financed by borrowed funds and other liabilities is indicated by