Q1. Would an increase in the cost of raw materials used in the production of inventory and would an increase in marketing expenses result in lower gross profit? Increase in raw materials cost
Increase in marketing expense
A) Yes No B) No Yes C) Yes Yes
Q2. Do gains and losses, as well as expenses appear on the income statement? A) Only expenses appear on the income statement. B) Both appear on the income statement. C) Only gains and losses appear on the income statement.
Q3. During 2007, Topeka Corporation entered into the following transactions: Transaction #1 – Interest on a certificate of deposit owned by Topeka was credited to Topeka’s investment account. Transaction #2 – Topeka sold 10,000 shares of common stock at $30 that had been repurchased by Topeka last year for $20. Should Topeka recognize the results of these transactions as income on the income statement for the year ended December 31, 2007? A) Neither should be recognized. B) Only one should be recognized. C) Both should be recognized.
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发表于 2009-1-17 08:53
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