Question;2. _______ is added back to net income in;the operating section of an indirect cash flow statement.;A. An increase in accounts receivable;B. A decrease in accounts payable;C. Depreciation;D. An increase in inventory;3. A journal entry for the sale of $10 par-common stock for $18 per share would;include a;A. debit to Common Stock.;B. debit to Paid-In Capital in Excess of;Par?Common Stock.;C. credit to Cash.;D. credit to Paid-In Capital in Excess of Par?Common Stock.;4. For the years 2011, 2012, and 2013, the sales of Red Line, Inc. are $40,000;$60,000 and $80,000, respectively. If 2011 is the base year, the trend;percentage for 2012 was;A. 150%.;B. 0%.;C. 133%.;D. 200%.;Working: 60,000 /40,000 = 150%;5. Cherry Corporation's outstanding stock is 100 shares of $100 par, 11%;cumulative preferred stock, and 2,000 shares of $12 par common stock. Cherry;paid $1,600 in cash dividends during the year. No dividends are in arrears.;Common stockholders received;A. $500.;B. $1,100.;C. $0.;D. $2,500.;Working: 1600 ? (100 X 100 X 11% = 1100) =;500;6. Other than depreciation, a company's operating expenses for the year were;$335,000. Prepaid expenses decreased by $7,000. Cash payments for operating;expenses to be reported on the cash flow statement using the direct method are;A. $328,000.;B. $342,000.;C. $7,000.;D. $335,000.;Working= 335,000 ? 7,000 = 328,000;7. Eagle Ridge, Inc. issued 40 shares of $20 par value stock to its accountant;in full payment for her $900 fee for assisting in setting up the new company.;The entry for the issuance of the stock is a;A. debit to Paid-in Capital in Excess of Par?Common for $100.;B. credit to Common Stock for $800.;C. debit to Common Stock for $800.;D. credit to Common Stock for $900.;8. Which is not included in paid-in capital?;A. Additional Paid-in Capital;B. Common Stock;C. Cash;D. Preferred Stock;9. The following information is available for Allsport Company;What amount was paid for merchandise during 2012?;Cost of goods sold $545,000;Merchandise inventory, 12/31/11 105,000;Merchandise inventory, 12/31/12 112,000;Accounts payable, 12/31/11 98,500;Accounts payable, 12/31/12 101,300;A. $540,800;B. $545,000;C. $549,200;D. $554,800;10. Operating activities are transactions and events associated with selling a;product or providing a service related to the;A. retained earnings reported on the balance sheet.;B. net income reported on the statement of retained earnings.;C. assets and liabilities reported on the balance sheet.;D. revenues and expenses reported on the;income statement.;11. Hallett Industries, Inc. reported net sales of $306,000, cost of goods sold;of $192,600, operating;expenses of $58,900, and income tax expense of 12,300. What is Hallett;Industries' net income percentage?;A. 37.06;B. 17.81;C. 13.79;D. 62.94;Working: 306000 ? 192,600 ? 58900 ? 12300 =;42,200;42,200;/ 306,000 = 13.79%;12. Stockholders receiving their proportionate share of any assets left after a;company goes out of business is an example of which stockholder right?;A. Preemption;B. Voting;C. Dividends;D. Liquidation;13. Knutson Company reacquired 5,000 shares of its $15-par common stock for;$13/share. The debit to Treasury Stock is;A. $10,000.;B. $75,000.;C. $65,000.;D. based on the last treasury stock transaction.;14. Which of the following causes the decrease of the par value of a company's;stock?;A. Cash dividend;B. Stock split;C. Sale of additional stock;D. Stock dividend;15. An example of a cash outflow from investing activities is;A. issuance of a note payable.;B. the purchase of treasury stock.;C. making a loan to another company.;D. paying cash dividends.;16. Haskins, Inc. sells 1,000 shares of $12 par common stock for $20 per share.;The journal entry is;A. debit Cash $12,000, credit Common Stock $12,000.;B. debit Cash $12,000, debit Paid-In;Capital in Excess of Par?Common $8,000, credit Common Stock $20,000.;C. debit Cash $20,000, credit Common Stock $12,000, credit Paid-In Capital;in Excess of Par-Common Stock $8,000.;D. debit Cash $20,000, credit Common Stock $20,000.;17. Of the following, which is not classified as an investing activity on the;statement of cash flows?;A. Purchasing land;B. Sale of equipment for cash;C. Selling goods and services;D. Collecting the principal on loans;End of exam;18. Tucker, Inc.'s net sales decreased from $90,000 in year one to $45,000 in;year two, and its cost of goods sold decreased from $30,000 in year one to;$20,000 in year two. The vertical analysis based on sales for cost of goods;sold for the two periods (rounded to nearest tenth of a percent) is;A. 225% and 300%.;B. 33.3% and 44.4%.;C. 44.4% and 33.3%.;D. 300% and 225%.;19. A company sold an asset with a book value of $56,000 for $35,000 cash.;Which of the following is a true statement?;A. Loss on sale equals $35,000 and Cash inflow equals $35,000.;B. Loss on sale equals $21,000 and Cash;inflow equals $35,000.;C. Loss on sale equals $35,000 and Cash inflow equals $21,000.;D. Loss on sale equals $56,000 and Cash inflow equals $56,000.
Paper#47708 | Written in 18-Jul-2015Price : $22