Question 1

Treasury stock is shown on the balance sheets as a deduction from ________.

Accepted Answer

A)  total assets 
B)  total liabilities 
C)  total current assets 
D)  total stockholders' equity 
A)  total assets 
B)  total liabilities 
C)  total current assets 
D)  total stockholders' equity

Question 2

Cash dividends are reported as an expense on the Income Statement.

Accepted Answer

A) True 
 B)False

Question 3

Georgia Company has the following data available:
$\begin{array}{lll}&\text { December } & \text { December } \
&31,2011 & 31,2012\
\text { Fixed Assets } & \$ 125 & \$ 125 \
\text { Accumulated Depreciation } & \$ 110 & \$ 117 \
\text { Long-term debt } & \$ 125 & \$ 5 \
\text { Commonstock } & \$ 300 & \$ 400 \
\text { Retained earnings } & \$ 100 & \$ 120
\end{array}$
No dividends were declared or paid for the year ending December 31,2012.What is the net cash flow from financing activities for the year ended December 31,2012?

Accepted Answer

A)  $20 cash inflow 
B)  $20 cash outflow 
C)  $100 cash inflow 
D)  $120 cash outflow 
A)  $20 cash inflow 
B)  $20 cash outflow 
C)  $100 cash inflow 
D)  $120 cash outflow

Question 4

Freight and installation costs are added to the cost of equipment.

Accepted Answer

A) True 
 B)False

Question 5

The cash paid to settle a long-term note payable is included in the ________ section of the statement of cash flows.

Accepted Answer

A)  operating 
B)  investing 
C)  financing 
D)  noncash 
A)  operating 
B)  investing 
C)  financing 
D)  noncash

Question 6

Leasehold improvements are amortized annually.

Accepted Answer

A) True 
 B)False

Question 7

The cash paid for taxes is included in the ________ section of the statement of cash flows.Assume the direct method is used.

Accepted Answer

A)  operating 
B)  investing 
C)  financing 
D)  noncash 
A)  operating 
B)  investing 
C)  financing 
D)  noncash

Question 8

An example of an investing activity on the statement of cash flows is the purchase of equipment for cash.

Accepted Answer

A) True 
 B)False

Question 9

Preferred stockholders receive cash dividends before common stockholders.

Accepted Answer

A) True 
 B)False

Question 10

Goodwill is amortized for financial statement purposes.

Accepted Answer

A) True 
 B)False

Question 11

During a period of inflation,the LIFO method reports a lower ending inventory amount than FIFO.

Accepted Answer

A) True 
 B)False

Question 12

Convertible bonds allow a bondholder to exchange ________.

Accepted Answer

A)  unsecured bonds for secured bonds 
B)  unsubordinated bonds for subordinated bonds 
C)  common stock for bonds 
D)  bonds for mortgage bonds 
A)  unsecured bonds for secured bonds 
B)  unsubordinated bonds for subordinated bonds 
C)  common stock for bonds 
D)  bonds for mortgage bonds

Question 13

An example of a financing activity on the statement of cash flows is the payment of cash dividends.

Accepted Answer

A) True 
 B)False

Question 14

For the year ended December 31,2015,the following information is available for the Kansas Company:
 $\begin{array}{ll}\text { Sales }&&\$891,000\
\text { Cost of goods sold } & 662,000 \
\text { Depreciation expense } & 16,000 \
\text { Amortization expense } & 3,000 \
\text { Wage expense } & 91,000 \
\text { Rent expense } & 4,000 \
\text { Loss on sale of fixed assets } & 2,000 \
\text { Interest expense } & 13,000 \
\text { Income taxexpense } & \underline{38,000}\
\text { Total expenses }&&829,000\
\text { Net income }&&\$62,000\
\end{array}$ 
 $\begin{array}{lll}&\text { December 31,2014 }&\text { December 31,2015}\
\text { Cash } & \$ 10,000 & \$ 12,800 \
\text { Accounts receivable } & \$ 10,000 & \$ 19,200 \
\text { Inventory } & \$ 20,000 & \$ 14,100 \
\text { Prepaid rent } & \$ 2,000 & \$ 1,700 \
\text { Accounts payable } & \$ 22,000 & \$ 24,400 \
\text { Wages payable } & \$ 12,000 & \$ 11,300 \
\text { Taxes payable } & \$ 2,000 & \$ 3,100
\end{array}$ 
Required:
Prepare the operating activities section of the statement of cash flows for the year ending December 31,2015.Use the indirect method.

Accepted Answer

The answer of For the year ended December 31,2015,the following...

Question 15

Lantern Company reported sales of $200,000,an increase in accounts receivable of $5,000,and a decrease in cash of $20,000.How much cash was collected from customers?

Accepted Answer

A)  $185,000 
B)  $195,000 
C)  $200,000 
D)  $220,000 
A)  $185,000 
B)  $195,000 
C)  $200,000 
D)  $220,000

Question 16

Cash dividends declared are an addition to Retained Earnings on the Retained Earnings Statement.

Accepted Answer

A) True 
 B)False

Question 17

On a classified balance sheet,the Equipment account is reduced by ________.

Accepted Answer

A)  Allowance for Bad Debts 
B)  Allowance for Doubtful Accounts 
C)  Accumulated Depreciation 
D)  Depreciation Expense 
A)  Allowance for Bad Debts 
B)  Allowance for Doubtful Accounts 
C)  Accumulated Depreciation 
D)  Depreciation Expense

Question 18

Leasehold Improvements do NOT include ________.

Accepted Answer

A)  painting and decorating of leased property 
B)  security systems added to leased property 
C)  bookcases built into walls of leased property 
D)  furniture used at leased property 
A)  painting and decorating of leased property 
B)  security systems added to leased property 
C)  bookcases built into walls of leased property 
D)  furniture used at leased property

Question 19

What is Other Comprehensive Income?

Accepted Answer

A)  unrealized gains and loss that are reported on the Statement of Retained Earnings 
B)  unrealized gains and losses that are reported on the traditional Income Statement 
C)  unrealized gains and losses that are reported on the Balance Sheet 
D)  unrealized gains and losses that are not reported on the financial statements 
A)  unrealized gains and loss that are reported on the Statement of Retained Earnings 
B)  unrealized gains and losses that are reported on the traditional Income Statement 
C)  unrealized gains and losses that are reported on the Balance Sheet 
D)  unrealized gains and losses that are not reported on the financial statements

Question 20

The cash paid for employees' wages is included in the ________ section of the statement of cash flows.Assume the direct method is used.

Accepted Answer

A)  operating 
B)  financing 
C)  investing 
D)  noncash 
A)  operating 
B)  financing 
C)  investing 
D)  noncash

Treasury stock is shown on the balance sheets as a deduction from ________.

Cash dividends are reported as an expense on the Income Statement.

Freight and installation costs are added to the cost of equipment.

The cash paid to settle a long-term note payable is included in the ________ section of the statement of cash flows.

Leasehold improvements are amortized annually.

The cash paid for taxes is included in the ________ section of the statement of cash flows.Assume the direct method is used.

An example of an investing activity on the statement of cash flows is the purchase of equipment for cash.

Preferred stockholders receive cash dividends before common stockholders.

Goodwill is amortized for financial statement purposes.

During a period of inflation,the LIFO method reports a lower ending inventory amount than FIFO.

Convertible bonds allow a bondholder to exchange ________.

An example of a financing activity on the statement of cash flows is the payment of cash dividends.

Lantern Company reported sales of $200,000,an increase in accounts receivable of $5,000,and a decrease in cash of $20,000.How much cash was collected from customers?

Cash dividends declared are an addition to Retained Earnings on the Retained Earnings Statement.

On a classified balance sheet,the Equipment account is reduced by ________.

Leasehold Improvements do NOT include ________.

What is Other Comprehensive Income?

The cash paid for employees' wages is included in the ________ section of the statement of cash flows.Assume the direct method is used.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

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Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

Treasury stock is shown on the balance sheets as a deduction from ________.

Cash dividends are reported as an expense on the Income Statement.

Freight and installation costs are added to the cost of equipment.

The cash paid to settle a long-term note payable is included in the ________ section of the statement of cash flows.

Leasehold improvements are amortized annually.

The cash paid for taxes is included in the ________ section of the statement of cash flows.Assume the direct method is used.

An example of an investing activity on the statement of cash flows is the purchase of equipment for cash.

Preferred stockholders receive cash dividends before common stockholders.

Goodwill is amortized for financial statement purposes.

During a period of inflation,the LIFO method reports a lower ending inventory amount than FIFO.

Convertible bonds allow a bondholder to exchange ________.

An example of a financing activity on the statement of cash flows is the payment of cash dividends.

Lantern Company reported sales of $200,000,an increase in accounts receivable of $5,000,and a decrease in cash of $20,000.How much cash was collected from customers?

Cash dividends declared are an addition to Retained Earnings on the Retained Earnings Statement.

On a classified balance sheet,the Equipment account is reduced by ________.

Leasehold Improvements do NOT include ________.

What is Other Comprehensive Income?

The cash paid for employees' wages is included in the ________ section of the statement of cash flows.Assume the direct method is used.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters