Midterm 1 quiz 2

Question 1

A fiscal year…….

Answer 1

is any 12 consecutive months

Question 2

key components in measuring income are

Answer 2

revenue and expenses.

Question 3

what helps determine when a sale should be included in the income statement?

Answer 3

Recognition principle

Question 4

The recording of expenses in the same time period as the related revenues is called

Answer 4

matching

Question 5

Shareholders equity =

Answer 5

Paid in capital + Net Income + Retained Earnings - Dividends

Question 6

types of expenses

Answer 6

depreciation, salaries, delivery expense….

Question 7

ending retained earnings =

Answer 7

beginning retained earning + net income - dividends

Question 8

Declaration of dividends to stockholders

Answer 8

d. decreases retained earnings.

Question 9

The ratio that is sometimes referred to as the earnings multiple is the

Answer 9

price-earnings ratio. P/E

Question 10

The only financial ratio required to be a part of the financial statements is

Answer 10

earnings per share

Question 11

Which of the following formulas is used to calculate dividend-yield ratio?

Answer 11

Common dividends per share / market price per share