The Balances of Select Accounts of Sandra Company as at December

question 86

Multiple Choice

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: The unearned revenue is the amount of cash received for services to be rendered in January, 2016. What are the total long-term liabilities shown on the balance sheet?

• A)$1,200
• B)$4,000
• C)$5,200
• D)$25,000

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Definitions:

Target Payout Ratio

Percentage of net income paid as a cash dividend.

Constant Ratio

A financial strategy or policy that maintains a fixed proportionate relationship between two or more variables, such as assets and liabilities.

Pro Forma Financial Statements

Financial statements projecting future years' earnings, usually to assess the impact of new projects or acquisitions.

Capital Intensity Ratio

A financial metric that measures the amount of assets needed per dollar of sales; higher ratios indicate a greater investment in assets to generate sales.