Accounting Test 4 2026 Updated Practice
Exam, Study Guide and Review Questions &
Answers
2026 latest Q&A
A liability for dividends exists:
On the date of payment.
On the date of declaration.
On the date of record.
For dividends in arrears on cumulative preferred stock.
When cumulative preferred stock is sold. - Answer- b
Stockholders' equity consists of which of the following?
Paid-in capital and retained earnings.
Long-term assets.
Retained earnings and cash.
Paid-in capital and par value.
Premiums and discounts. - Answer- a
Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500.
The accounts receivable turnover ratio is:
16.3 times.
15.3 times.
14.3 times.
0.65 times.
28.6 times. - Answer- b
Refer to the following selected financial information from Dodge Company. Compute the company's
acid-test ratio.
Cash $42,250
Short-term investments 60,000
Accounts receivable, net 79,500
Merchandise inventory 115,000
Prepaid expenses 9,700
Accounts payable 111,400
0.92.
1.63.
2.75.
Exam, Study Guide and Review Questions &
Answers
2026 latest Q&A
A liability for dividends exists:
On the date of payment.
On the date of declaration.
On the date of record.
For dividends in arrears on cumulative preferred stock.
When cumulative preferred stock is sold. - Answer- b
Stockholders' equity consists of which of the following?
Paid-in capital and retained earnings.
Long-term assets.
Retained earnings and cash.
Paid-in capital and par value.
Premiums and discounts. - Answer- a
Powers Company reported Net sales of $1,200,000 and average Accounts Receivable, net of $78,500.
The accounts receivable turnover ratio is:
16.3 times.
15.3 times.
14.3 times.
0.65 times.
28.6 times. - Answer- b
Refer to the following selected financial information from Dodge Company. Compute the company's
acid-test ratio.
Cash $42,250
Short-term investments 60,000
Accounts receivable, net 79,500
Merchandise inventory 115,000
Prepaid expenses 9,700
Accounts payable 111,400
0.92.
1.63.
2.75.
