The inventory data for an item for June are: June 01 Inventory 20 units at $10 08 Sold 10 units 13 P

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The inventory data for an item for June are: June 01    Inventory 20 units at $10 08    Sold 10 units 13 Purchased      30 units at $12 21 Sold 20 30 Purchased 10 units at $15

Under a perpetual system, what is the cost of the merchandise inventory of 30 units on June 30 using the first-in, first-out method?

Select one:

a. $310

b. $320

c. $380

d. $390

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The inventory data for an item for June are:     June 01 Inventory 20 units at $10 08

Sold 10 units 13 Purchased 30 units at $12 21 Sold 20 units 30 Purchased 10 units at $15

Under a perpetual system, what is the cost of the merchandise inventory of 30 units on June 30 using the last-in, first-out method?

Select one:

a. $310

b. $380

c. $370

d. $390

A proprietorship, when obtaining credit, will have:

Select one:

a. Liability only to the extent of investment in the business

b. No liability as a person or as a business

c. Liability to the extent of business assets owned

d. Unlimited personal liability

The debt to equity ratio is a:

Select one:

a. Liquidity ratio

b. Leverage ratio

c. Profitability ratio

d. a and c are correct

Under what type of corporation do the shareholders agree to have the profits of the corporation taxed directly to them rather than the corporation?

Select one:

a. S Corporation

b. Close Corporation

c. C Corporation

d. Private Corporation

Why is the amount of debt in a company’s capital structure important to the financial analyst?

Select one:

a. Debt implies risk

b. Debt is less costly than equity

c. Equity is riskier than debt

d. Debt is equal to total assets