DeVry University, Keller Graduate School of Management ACCT504 | ACCT 504 Week 8, Final Exam 2 (all answers solved correctly)

ACCT 504 Week 8, Final Exam 2 Week 8 : Wk8 - Final Exam 1. (TCO A) An advantage of the corporate form of business is that (Points : 5) it has limited life. its owner’s personal resources are at stake. its ownership is easily transferable via the sale of shares of stock. it is simple to establish. 2. (TCO A) Which activities involve acquiring the resources to run the business? (Points : 5) Delivering Financing Investing Operating 3. (TCO A) For 2007 Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2007 earnings per share? (Points : 5) $4.66 $0.20 $66.67 $5.00 4. (TCO C) Free cash flow provides an indication of a company’s ability to (Points : 5) generate cash to invest in new capital expenditures. generate net income. generate cash to pay dividends. both a and c. 5. (TCO C) When a corporation distributes a dividend the (Points : 5) most common form of distribution is a cash dividend. Dividends account will be increased with a credit. Retained Earnings account will be directly increased with a debit. Dividends account will be decreased with a debit. 6. (TCO A, B) Cerner Company showed the following balances at t