A debit is found on the left side of the ledger column, and a credit is on the right. Question 1 options: Question 2 (1 point) Saved Listen A balance sheet is the measurement of income and expenses, and the bottom line will let you know if there's a net income or net loss. Question 2 options: Question 3 (1 point) Saved Listen The following accounts are assets: Cash Vehicle Land Patents Inventory Question 3 options: Question 4 (1 point) Saved Listen The following accounts are expenses: Accounts Payable Accounts Receivable Mortgage Payable Fees Earned Question 4 options: Question 5 (1 point) Saved Listen Carla owns a bakery. She files the taxes for this business on Schedule C of her personal return. She has a sole proprietorship. Question 5 options: Question 6 (1 point) Saved Listen Abraham owns a car dealership. He filed paperwork so that the company is its own legal entity and has its own tax return. He has 5 investors who have no say in how the business is run, but he does send them monthly updates and cuts them a check as a dividend. He has a partnership. Question 6 options: Question 7 (1 point) Saved Listen Match the accounts to the type of account. Question 7 options: 12345 Cash 12345 Telephone Expense 12345 Mortgage Payable 12345 Prepaid Insurance 12345 Stock 12345 Revenue 12345 Note Payable 12345 Sales 12345 Insurance Expense Income Expense Asset Lability Equity Question 8 (2.5 points) Listen In the balance sheet, long-term debt (liability for the debtor; asset for the creditor) typically is reported as a single amount, net of any discount or increased by any premium, rather than at its face amount accompanied by a separate valuation account for the discount or premium. Question 8 options: Question 9 (3 points) Saved Listen The ___________ of financial instruments must be disclosed either in the body of the financial statements or in disclosure notes. Question 9 options: Fair value Estimated value Future value None of the above because values can never truly be determined Question 10 (2.5 points) Saved Listen General speaking, less debt means more risk. Question 10 options: Question 11 (2.5 points) Saved Listen When you invest in a company, you are concerned with whether or not they have a lot of debt, especially if they have more debt than it seems they can pay off. Question 11 options: Question 12 (3 points) Saved Listen Which ratio indicates how much financial leverage a company has? Question 12 options: Return on equity Debt to income Inventory turnover Debt to equity Question 13 (3 points) Saved Listen The _______________ on assets indicates profitability without regard to how resources are financed Question 13 options: Rate of Return Debt to income Inventory turnover Debt to equity Question 14 (3 points) Saved Listen The ______________ ratio indicates the margin of safety provided to creditors Question 14 options: Times interest earned Debt to income Inventory turnover Debt to equity Question 15 (3 points) Saved Listen Calculate t.

1. A debit is found on the left side of the ledger column, and a credit is on the right.
Question 1 options:
Question 2 (1 point)
Saved
Listen
A balance sheet is the measurement of income and expenses, and the bottom line will let you
know if there's a net income or net loss.
Question 2 options:
Question 3 (1 point)
Saved
Listen
The following accounts are assets:
Cash
Vehicle
Land
Patents
Inventory
Question 3 options:
Question 4 (1 point)
Saved
Listen
The following accounts are expenses:
Accounts Payable
Accounts Receivable

2. Mortgage Payable
Fees Earned
Question 4 options:
Question 5 (1 point)
Saved
Listen
Carla owns a bakery. She files the taxes for this business on Schedule C of her personal return.
She has a sole proprietorship.
Question 5 options:
Question 6 (1 point)
Saved
Listen
Abraham owns a car dealership. He filed paperwork so that the company is its own legal entity
and has its own tax return. He has 5 investors who have no say in how the business is run, but he
does send them monthly updates and cuts them a check as a dividend.
He has a partnership.
Question 6 options:
Question 7 (1 point)
Saved
Listen
Match the accounts to the type of account.
Question 7 options:
12345
Cash

3. 12345
Telephone Expense
12345
Mortgage Payable
12345
Prepaid Insurance
12345
Stock
12345
Revenue
12345
Note Payable
12345
Sales
12345
Insurance Expense
Income
Expense
Asset
Lability
Equity
Question 8 (2.5 points)
Listen

4. In the balance sheet, long-term debt (liability for the debtor; asset for the creditor) typically is
reported as a single amount, net of any discount or increased by any premium, rather than at its
face amount accompanied by a separate valuation account for the discount or premium.
Question 8 options:
Question 9 (3 points)
Saved
Listen
The ___________ of financial instruments must be disclosed either in the body of the financial
statements or in disclosure notes.
Question 9 options:
Fair value
Estimated value
Future value
None of the above because values can never truly be determined
Question 10 (2.5 points)
Saved
Listen
General speaking, less debt means more risk.
Question 10 options:
Question 11 (2.5 points)
Saved
Listen
When you invest in a company, you are concerned with whether or not they have a lot of debt,
especially if they have more debt than it seems they can pay off.
Question 11 options:

5. Question 12 (3 points)
Saved
Listen
Which ratio indicates how much financial leverage a company has?
Question 12 options:
Return on equity
Debt to income
Inventory turnover
Debt to equity
Question 13 (3 points)
Saved
Listen
The _______________ on assets indicates profitability without regard to how resources are
financed
Question 13 options:
Rate of Return
Debt to income
Inventory turnover
Debt to equity
Question 14 (3 points)
Saved
Listen
The ______________ ratio indicates the margin of safety provided to creditors
Question 14 options:

6. Times interest earned
Debt to income
Inventory turnover
Debt to equity
Question 15 (3 points)
Saved
Listen
Calculate the Debt to equity Ratio: Company has $38,000 in long-term debt and $31,000 in
short-term debt. Shareholders have equity of $19,000.
Question 15 options:
4.4
5.0
3.6
112
Question 16 (3 points)
Saved
Listen
Calculate the rate of return on assets: The company has total sales of $10,000,000 and expenses
of 8,717,000. Total assets are $87,900,000.
Question 16 options:
3.1%
1.5%
60%
0.8%

7. Question 17 (3 points)
Listen
Calculate the Times Interest Earned Ratio: The company has a net income of $1,283. The
interest is $841. The taxes are $5,607.
Question 17 options:
9.2
7.3
12.2
6.0
Question 18 (3 points)
Saved
Listen
You buy a bond for $500,000. It pays 3% interest per year, but you get paid every 6 months.
How much will you be paid every 6 months.
Question 18 options:
$15,000
$5,000
$3.50
$7,500
Question 19 (3 points)
Listen
You buy a bond for $500,000. It pays 3% interest per year, but you get paid every 6 months.
How much will you be paid every 6 months.
Question 19 options:

8. $65,500
$50,750
$82,500
$75,000
True
False