1. The owner's interest in a corporation would be recorded under what category on the Balance Sheet?

2. Which of the following is NOT a ratio that can be calculated to determine a company's profitability?

3. Fill in the blanks. A company is able to _____________ the cost of acquiring a resource if the resource will provide the company with a tangible benefit for more than one fiscal year. Companies _________ costs that provide only one fiscal year's worth of benefits.

4. Platinum Enterprises, Inc. had a net income in 2010 of $1.2 million. In 2011, operations suffered after several plants were destroyed following an earthquake, and net income dropped to $650,000. How would this affect the return on equity ratio for 2011? (Assume shareholders' equity remains constant.)

5. Which scenario is an example that may lead to a non-recurring item on the income statement?

6. Which of the equations is commonly used to determine a company's long-term solvency?

7. Complete the following statement. A bond issued with a coupon rate higher than the current interest rate is said to be issued at:

8. Ice Ice Cream, a new ice cream restaurant, allows customers to order food and pay with their Ice Ice Cream credit card. Currently there are 5 customers who have an outstanding balance that has not been paid for 9 months or more. What should the company do about these unreceived funds?

9. Income and expense accounts are examples of what type of account, and why?

10. Which of the following are steps in the accounting cycle?

11. Things of value owned by a business are also known as?

12. Fill in the blanks. In T-accounts, credits are listed _________________, while debits are listed ________________.

13. Review the following income statement for ABCD Builders. What can be concluded from the financial data?

14. Which of the following best describes what pro forma statements are and what information they convey?

15. To prepare a balance sheet from T-accounts, you should do which of the following?

16. Historical financial statement ratios are often used to generate future financial statements when financial analysts conduct which of the following?

17. Which of the following best describes the difference between merchandising and manufacturing firms?

18. Which of the following would be a transaction recorded on the statement of cash flows?

19. A customer purchases a computer from your retail store. The selling price is $1,200. The customer pays $200 in cash and charges the remaining balance on the store's credit card. The $1,000 charged would be recorded in which account?

20. How are LIFO inventory numbers converted into FIFO inventory numbers?

21. Which of the following are needed to generate an income statement for a merchandising firm?

22. All of the following are types of assets EXCEPT:

23. Which of the following best describes goodwill?

24. Community Builders is a local company that builds pine wood sheds to sell to homeowners. On February 15th, the company purchased $1,000 of pine wood ($1.25 per wood plank), and then the company purchased $850 more inventory when prices fell in April to $0.85 per wood plank. In the first 6 months of the current fiscal year, Community Builders sold 30 sheds (each shed uses 40 wood planks). What is the LIFO reserve for this inventory?

25. When closing T-accounts, which of the following steps must be taken?