(TCO A) Which of the following is an advantage of the sole proprietorship relative to the corporate form of business organization? (Points : 5)Limited liability of investorTransferability of ownershipSimple to establishUnlimited life2. (TCO A) The payment of cash dividends is recorded in the _____. (Points : 5)operating section of the statement of cash flowsinvesting section of the statement of cash flowsfinancing section of the statement of cash flowsnoncash investing and financing section of the statement of cash flows3. (TCOs A, B) Below is a partial list of account balances for Landon Company::$10,0007003,5002,8004,2001,40070021,00017,500What did Landon Company show as total debits? (Points : 5)$32,400$29,400$34,500$35,2004. (TCOs B, E) Under the accrual basis of accounting, revenues are recorded and reported _____. (Points : 5)when companies receive payments for jobs performed or products providedwhen companies have provided products or performed serviceswhen companies receive payments prior to providing products or performing serviceswhen companies receive payments after providing products or performing services5. (TCO D) In a period of increasing prices, which inventory cost flow assumption will result in the highest amount of net income? (Points : 5)LIFOThe average cost methodFIFOIncome tax expense for the period will be the same under all assumptions.6. (TCOs A, E) Equipment was purchased for $55,000 on January 1, 2011. Freight charges of $2,200 were incurred and there was a cost of $1,800 for installation. It is estimated the equipment will have a $5,500 salvage value at the end of its 5-year useful life. Depreciation expense for 2011 using the straight-line method will be _____. (Points : 5)$10,340$10,700$10,260$9,9007. (TCOs D, G) Payne Corporation issues 100 twenty-year, 6%, $1,000 bonds dated July 1, 2010, at 94. The journal entry to record the amount of cash will show a _____. (Points : 5)debit to Cash of $194,000debit to Cash of $100,000debit to Cash of $94,000debit to Cash of $60,0008. (TCO C) Accounts receivable arising from sales to customers amounted to $80,000 and $100,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $1,000,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is _____. (Points : 5)$20,000$1,020,000$1,000,000$980,0009. (TCO F) If you are making comparisons with other companies to provide insight into a company’s competitive position, you are performing what type of analysis? (Points : 5)Common-size analysisIntercompany analysisIntracompany analysisIndustry average analysis10. (TCO F) The formula for performing horizontal analysis is _____. (Points : 5)(Current Year Amount minus Base Year Amount) divided by Current Year AmountBase Year Amount divided by Current Year AmountCurrent Year Amount minus Base Year Amount(Current Year Amount minus Base Year Amount) divided by Base Year Amount11. (TCO F) Horizontal analysis is a technique for evaluating a series of financial statement data over a period of time _____. (Points : 5)that has been arranged from the highest number to the lowest numberthat has been arranged from the lowest number to the highest numberto determine which numbers are in errorto determine the amount and/or percentage increase or decrease that has taken place12. (TCO F) Ratio analysis is helpful for _____. (Points : 5)identifying differences between numbersidentifying causes of variances between numbersperforming a horizontal analysiscomparing companies of different sizes13. (TCO F) Stockholders would be most interested in which of the following ratios? (Points : 5)Days in inventoryFree cash flowCurrent ratioAverage collection period14. (TCO G) To calculate the market value of a bond, we need to _____. (Points : 5)multiply the bond price times the interest ratecalculate the present value of the principal onlycalculate the present value of the interest onlycalculate the present value of both the principal and interest payments

(TCO A) Which of the following is an advantage of the sole proprietorship relative to the corporate form of business organization? (Points : 5)Limited liability of investorTransferability of…