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The Following Items Are Taken from the Financial Statements of the Postal

question 116

Multiple Choice

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: $\begin{array} { l r } \text { Accounts payable } & \$ 18,000 \\\text { Accounts receivable } & 11,000 \\\text { Accumulated depreciation - equipment } & 28,000 \\\text { Advertising expense } & 21,000 \\\text { Cash } & 15,000 \\\text { Common stock } & 42,000 \\\text { Dividends } & 14,000 \\\text { Depreciation expense } & 12,000 \\\text { Equipment } & 210,000 \\\text { Insurance expense } & 3,000 \\\text { Note payable, due 6/30/16 } & 70,000 \\\text { Prepaid insurance (12-month policy) } & 6,000 \\\text { Rent expense } & 17,000 \\\text { Retained earnings (1/1/15) } & 60,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 133,000 \\\text { Supplies } & 4,000 \\\text { Supplies expense } & 6,000\end{array}$ The sub-classifications for assets on the company's classified balance sheet would include all of the following except

Calculate and interpret various types of financial ratios including liquidity, solvency, and profitability ratios.

Analyze and compare year-over-year financial performance.

Understand the impact of different transactions on financial ratios and company financial health.

Calculate turnover ratios and understand their implications on business operations.

Definitions:

Sound Recording

The process of capturing audio signals onto a storage medium, allowing for later playback or manipulation.

Document

A written, drawn, presented, or memorialized representation of thoughts, often serving as legal or historical evidence.

Oral Traditions

The practice of passing stories, history, and knowledge from one generation to another through spoken word and storytelling.

Electronic Media

Forms of media that require electrical or digital equipment to be accessed by the audience, including television, radio, and the internet.