Accounting

S&C, Inc. has 400,000 shares of $10-par common stock outstanding. They have declared a 5% stock ...

S&C, Inc. has 400,000 shares of $10-par common stock outstanding. They have declared a 5% stock ...

S&C, Inc. has 400,000 shares of $10-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $18/share. The amount that will be credited to Paid-in Capital in Excess of Par Common Stock

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Treasury stock is recorded at par value. (True or false?)

Treasury stock is recorded at par value. (True or false?)

Treasury stock is recorded at par value.
Is this statement one that's true or false?

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Which of the following is TRUE regarding treasury stock?

Which of the following is TRUE regarding treasury stock?

Which of the following is TRUE regarding treasury stock?
A) Treasury Stock has a debit balance.
B) Treasury Stock is a contra-asset account.
C) Treasury Stock is recorded at cost.
D) Both A and C are true of Treasury Stock.

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Anderson Industries purchased 1,000 shares of the company's issued common stock, paying $10 per ...

Anderson Industries purchased 1,000 shares of the company's issued common stock, paying $10 per ...

Anderson Industries purchased 1,000 shares of the company's issued common stock, paying $10 per share. To record the purchase, the journal entry will be:
A) Debit to Common Stock $10,000, credit to Cash $10,000
B) Debit to Treasury Sto

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Charmed, Inc. has 5,000 shares of treasury stock which it purchased for $13/share. It later resold ...

Charmed, Inc. has 5,000 shares of treasury stock which it purchased for $13/share. It later resold ...

Charmed, Inc. has 5,000 shares of treasury stock which it purchased for $13/share. It later resold 2,000 of those shares for $17/share. The amount to be credited to Paid-in Capital–Treasury Stock is:
A) $30,000.
B) $26,000.
C) $34,000.

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In addition to the regular financial statements, a company may issue a separate Statement of ...

In addition to the regular financial statements, a company may issue a separate Statement of ...

In addition to the regular financial statements, a company may issue a separate Statement of Stockholders' Equity.
Is this statement one that's true or false?

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Which is NOT included in paid-in capital?

Which is NOT included in paid-in capital?

Which is NOT included in paid-in capital?
A) Preferred Stock
B) Common Stock
C) Cash
D) Additional Paid-in Capital

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Stockholders' stake in stock appears in:

Stockholders' stake in stock appears in:

Stockholders' stake in stock appears in:
A) Paid-In Capital.
B) Owner's Equity.
C) Retained Earnings.
D) Cash.

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The formula for return on equity is net income divided by average Stockholders' Equity.Is this ...

The formula for return on equity is net income divided by average Stockholders' Equity.Is this ...

The formula for return on equity is net income divided by average Stockholders' Equity.
Is this statement one that's true or false?

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The cash flow statement and Balance Sheet use accrual accounting. (True or false?)

The cash flow statement and Balance Sheet use accrual accounting. (True or false?)

The cash flow statement and Balance Sheet use accrual accounting.
Is this statement one that's true or false?

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The accuracy of the Statement of Cash Flows can be verified by computing the change in the balance ...

The accuracy of the Statement of Cash Flows can be verified by computing the change in the balance ...

The accuracy of the Statement of Cash Flows can be verified by computing the change in the balance of the:
A) cash and cash equivalent accounts.
B) equity account.
C) revenue accounts.
D) asset and liability accounts.

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The cash flow statement is the communicating link between the:

The cash flow statement is the communicating link between the:

The cash flow statement is the communicating link between the:
A) Statement of Stockholders' Equity and the cash reported on the Balance Sheet.
B) Income Statement and the Statement of Stockholders' Equity.
C) cash reported o

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Operating activities reflect such things as purchasing fixed assets. (True or false?)

Operating activities reflect such things as purchasing fixed assets. (True or false?)

Operating activities reflect such things as purchasing fixed assets.
Is this statement one that's true or false?

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Current assets on the Balance Sheet would be affected by and be part of operating activities.Is this ...

Current assets on the Balance Sheet would be affected by and be part of operating activities.Is this ...

Current assets on the Balance Sheet would be affected by and be part of operating activities.
Is this statement one that's true or false?

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The investing and financing sections of the Statement of Cash Flows is the same for the indirect and ...

The investing and financing sections of the Statement of Cash Flows is the same for the indirect and ...

The investing and financing sections of the Statement of Cash Flows is the same for the indirect and direct method.
Is this statement one that's true or false?

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Investing Cash Flows affect: (Multiple Choice)

Investing Cash Flows affect: (Multiple Choice)

Investing Cash Flows affect:
A) current assets and current liabilities.
B) long-term asset accounts.
C) equity accounts.
D) long-term liability accounts.

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When comparing net cash provided by operations using the direct method versus indirect method, we ...

When comparing net cash provided by operations using the direct method versus indirect method, we ...

When comparing net cash provided by operations using the direct method versus indirect method, we find that:
A) net cash is higher using the indirect method.
B) net cash is lower using the indirect method.
C) there is no difference in

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As you approach graduation, you are evaluating your job offers from the following companies. ...

As you approach graduation, you are evaluating your job offers from the following companies. ...

As you approach graduation, you are evaluating your job offers from the following companies. Assuming that all other factors are equal (pay, benefits, location, job duties, industry, company size, company age etc.), for which of the following compani

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Are all decreases to cash the result of an unfavorable situation?

Are all decreases to cash the result of an unfavorable situation?

Are all decreases to cash the result of an unfavorable situation?
A) Yes, decreases to cash are always bad.
B) No, cash could decrease as a result of acquiring long-term assets which the company needs to expand or stay competitive.
C)

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Bach Company sold an asset with a book value of $56,000 for $100,000 cash. Which of the following is ...

Bach Company sold an asset with a book value of $56,000 for $100,000 cash. Which of the following is ...

Bach Company sold an asset with a book value of $56,000 for $100,000 cash. Which of the following is a TRUE statement?
A) Gain on sale equals $100,000 and Cash inflow equals $100,000.
B) Gain on sale equals $56,000 and Cash inflow equals $5

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Which of the following is NOT a use of cash for a business?

Which of the following is NOT a use of cash for a business?

Which of the following is NOT a use of cash for a business?
A) Operating the business
B) Buying long-term assets with cash
C) Paying cash dividends
D) All of the above are uses of cash.

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A transaction acquiring land by issuing a note for the full purchase price would not appear on the ...

A transaction acquiring land by issuing a note for the full purchase price would not appear on the ...

A transaction acquiring land by issuing a note for the full purchase price would not appear on the cash flow statement because no cash was involved, but it may be disclosed in a separate section.
Is this statement one that's true or false?

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A decrease in a current liability causes an increase in cash. (True or false?)

A decrease in a current liability causes an increase in cash. (True or false?)

A decrease in a current liability causes an increase in cash.
Is this statement one that's true or false?

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The purchase of treasury stock is shown as a cash outflow in the investing section of the cash flow ...

The purchase of treasury stock is shown as a cash outflow in the investing section of the cash flow ...

The purchase of treasury stock is shown as a cash outflow in the investing section of the cash flow statement.
Is this statement one that's true or false?

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Losses on the sale of long-term assets are:

Losses on the sale of long-term assets are:

Losses on the sale of long-term assets are:
A) added to operating activities.
B) subtracted from operating activities.
C) added to investing activities.
D) subtracted from investing activities.

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The cost of purchasing long-term assets, such as buildings and land, are:

The cost of purchasing long-term assets, such as buildings and land, are:

The cost of purchasing long-term assets, such as buildings and land, are:
A) added to operating activities.
B) subtracted from operating activities.
C) added to investing activities.
D) subtracted from investing activities.

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Which would be added back to net income in the operating section of an indirect cash flow ...

Which would be added back to net income in the operating section of an indirect cash flow ...

Which would be added back to net income in the operating section of an indirect cash flow statement?
A) A decrease in Accounts Payable
B) Depreciation
C) An increase in Accounts Receivable
D) An increase in inventory

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Which would be subtracted from net income in the operating section of an indirect cash flow ...

Which would be subtracted from net income in the operating section of an indirect cash flow ...

Which would be subtracted from net income in the operating section of an indirect cash flow statement?
A) A decrease in Notes Payable
B) A decrease in prepaid expenses
C) An increase in sales tax payable
D) An increase in inventor

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An example of a cash outflow from financing activities is:

An example of a cash outflow from financing activities is:

An example of a cash outflow from financing activities is:
A) paying dividends in cash.
B) buying additional inventory.
C) selling land.
D) collecting notes receivable.

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An example of a cash outflow from investing activities is:

An example of a cash outflow from investing activities is:

An example of a cash outflow from investing activities is:
A) issuance of a note payable.
B) making a loan to another company.
C) paying cash dividends.
D) the purchase of treasury stock.

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Under the indirect method of cash flow, which of the following adjustments would NOT be made to net ...

Under the indirect method of cash flow, which of the following adjustments would NOT be made to net ...

Under the indirect method of cash flow, which of the following adjustments would NOT be made to net income when computing cash from operating activities?
A) Add an increase in Accounts Payable
B) Add Depreciation Expense
C) Add a decre

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The Accounts Payable balance has decreased during the year. How would this affect the Statement of ...

The Accounts Payable balance has decreased during the year. How would this affect the Statement of ...

The Accounts Payable balance has decreased during the year. How would this affect the Statement of Cash Flows operations section under the indirect method?
A) It is already included in the net income.
B) It would be added back to net income

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The Accounts Receivable balance has decreased during the year. How would this affect the Statement ...

The Accounts Receivable balance has decreased during the year. How would this affect the Statement ...

The Accounts Receivable balance has decreased during the year. How would this affect the Statement of Cash Flows operations section under the indirect method?
A) It is already included in the net income.
B) It would be added back to net inc

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An increase in long-term Mortgage Payable would mean a(n):

An increase in long-term Mortgage Payable would mean a(n):

An increase in long-term Mortgage Payable would mean a(n):
A) increase in cash flow from investing activities.
B) decrease in cash flow from investing activities.
C) increase in cash flow from financing activities.
D) decrease in

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Of the following, which is NOT classified as an investing activity on the Statement of Cash Flows?

Of the following, which is NOT classified as an investing activity on the Statement of Cash Flows?

Of the following, which is NOT classified as an investing activity on the Statement of Cash Flows?
A) Sale of equipment for cash
B) Purchasing land
C) Collecting the principal on loans
D) Selling goods and services

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A Statement of Cash Flows would NOT disclose:

A Statement of Cash Flows would NOT disclose:

A Statement of Cash Flows would NOT disclose:
A) stock dividends declared.
B) bonds payable issued.
C) purchase of treasury stock.
D) capital stock issued.

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Sterling Sails reported net income of $35,000; depreciation expenses of $20,000; an increase in ...

Sterling Sails reported net income of $35,000; depreciation expenses of $20,000; an increase in ...

Sterling Sails reported net income of $35,000; depreciation expenses of $20,000; an increase in Accounts Payable of $2,000; and an increase in current notes receivable of $3,000. Net Cash Flows from operating activities under the indirect method is:

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The records of Eclectic Lighting showed a net loss of $30,000; depreciation expense of $25,000; and ...

The records of Eclectic Lighting showed a net loss of $30,000; depreciation expense of $25,000; and ...

The records of Eclectic Lighting showed a net loss of $30,000; depreciation expense of $25,000; and an increase in supplies on hand of $5,000. The amount of net cash flow from operating activities using the indirect method is:
A) ($15,000).

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If $10,000 was generated from operations (indirect method); $4,000 was used for investing ...

If $10,000 was generated from operations (indirect method); $4,000 was used for investing ...

If $10,000 was generated from operations (indirect method); $4,000 was used for investing activities; and $6,000 was generated from financing activities, the cash balance:
A) increased by $6,000.
B) increased by $8,000.
C) increased by

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Under the direct method, amortization expense is added to net income. (True or false?)

Under the direct method, amortization expense is added to net income. (True or false?)

Under the direct method, amortization expense is added to net income.
Is this statement one that's true or false?

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