1. (TCOs A, B, and C) Shareholders want answers to all of the following questions except:
2. (TCO C) Paying cash dividends is an example of a(n)
3. (TCO A) Assets include
4. (TCO A) In a classified balance sheet, assets are usually classified as
5. (TCO B) For 2012, LBJ Corporation reported net income of $75,000; net sales $750,000; and weighted average shares outstanding of 7,500. There were no preferred stock dividends. What was the 2012 earnings per share?
6. (TCO D) Which of the following describes the normal balance and classification of the dividends account?
7. (TCO E) Which of the following statements is correct?
8. (TCOs A and B) A perpetual inventory system would most likely be used by a(n)
9. (TCOs A and B) LBJ Company recorded the following events involving a recent purchase of merchandise.
- Received goods for $75,000, terms 2/10, n/30
- Returned $2,500 of the shipment for credit due to damaged goods
- Paid $1,200 for freight in
- Paid the invoice within the discount period
10. (TCO A) In a period of increasing prices, which of the following inventory methods generally results in the highest gross profit?
11. (TCO D) An account is an important accounting record where financial information is stored until needed. Briefly explain (1) the nature of an account, (2) the different types of accounts, and (3) the manner in which an account is increased and decreased, and the normal balance of each type of accounts.
12. (TCOs B and E) The adjusted trial balance of Gertz Company included the following selected accounts.
13. (TCO D and E) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.
14. (TCO D) Your friend Sally has hired you to evaluate the following internal control procedures.
a: Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which principle relates to each of the internal controls.
b: For the weaknesses, you also need to state a recommendation for improvement.