MGT 8803 Self Assessment 1 QUESTIONS WITH COMPLETE SOLUTIONS

A balance sheet shows: a. Dividends distributed to stockholders b. Operating expenses for the period c. Earnings per share for the period d. Claims owners have against the assets of the firm e. Sales revenue correct answer: d. Claims owners have against the assets of the firm Which of the following would not be a liability on the balance sheet? a. Depreciation b. Deferred revenue c. Accounts payable d. Wages payable e. Dividends payable correct answer: a. Depreciation Which ONE of the following is NOT an example of a current asset? a. Intangible assets b. Prepaid expenses c. Cash d. Marketable securities e. Accounts receivable correct answer: a. Intangible Assets Which one of the following is not included as an expense on the Income Statement? a. Dividend expense b. Marketing expenses c. Cost of goods sold d. Depreciation expense e. Bad debt expense correct answer: a. Dividend Expense A firm reports the following income statement items for FY2020: sales of $60,550,000; income tax of $1,744,000; operating expenses of $10,115,000; cost of goods sold of $34,025,000; and interest expense of $750,000. The firm also declared and paid $947,250 in dividends in FY2020. What is the amount of the firms Net Income Before Interest and Taxes? a. $16,410,000 b. $18,154,000 c. $14,935,000 d. $7,775,000