1. A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000, recognized by its purchasers as being worth $140,000 and purchased for $137,000. The land should be recorded in the purchaser's books at:
- $95,000
- $137,000
- $138,500
- $140,000
- $150,000
2. Stride Rite has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.
- 38.6%
- 13.4%
- 34.9%
- 25.9%
- 14.9%
3. Internal users of accounting information include:
- Shareholders
- Customers
- Creditors
- Government regulators
- Line Supervisor
4. Of the following accounts, the one that normally has a credit balance is:
- Cash
- Office Equipment
- Sales Salaries Payable
- Dividends
- Sales Salaries Expense
5. Unearned revenues are:
- Revenues that have been earned and received in cash
- Revenues that have been earned but not yet collected in cash
- Liabilities created when a customer pays in advance for products or services before the revenue is earned
- Recorded as an asset in the accounting records
- Increases to retained earnings