On January 1, 2011, Swinger, Inc purchases a batting machine for 240,000 that has an estimated useful life of 5 years and an expected residual value of 20,000.
What is the effect of this transaction on the company's statement of cash flows for the year ended December 31, 2012?
A) Financing activity cash outflow of (44,000)
B) Operating activity cash outflow of (44,000)
C) Investing activity cash outflow of (240,000)
D) The transaction will not be reported on the statement of cash flows in 2010.
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Q. 2) What is the amount of the inventory at the end of the year using the LIFO method?
a. 1,685
b. 1,575
c. 1,805
d. 3,815
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Q. 3) An example of a preventive control is requiring that all purchases over 1,000 be authorized by upper management.
Indicate whether the statement is true or false
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Q. 4) The WebTrust family of services offers best practices and e-business solutions related exclusively to B2B electronic commerce.
Indicate whether the statement is true or false
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Q. 5) TER Company uses the activity (units-of-production) method to depreciate long-term assets. The company owns a truck that cost 48,000. The truck is estimated to have a salvage value of 4,000 and a useful life of 200,000 miles.
How much depreciation expense would be reported on the income statement in a year in which the truck is driven 50,000 miles?
A) 13,000
B) 12,000
C) 11,000
D) 10,000
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Q. 6) With ____________________, the employee does not handle the paycheck; payment is made by the employer directly to the employee's bank.
Fill in the blank(s) with correct word
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