Cost of goods sold increased by a specific dollar

Assignment Help Financial Accounting

Reference no: EM1313254

Multiple choice question based on share valuation.

1. The entry to record the issuance of 1,000 shares of $1 par value common stock at $10 per share includes a:

a. increase to common stock for $10,000.

b. decrease to common stock for $1,000.

c. increase to paid-in capital in excess of par value-common for $9,000.

d. decrease to paid-in capital in excess of par value-common for $1,000.

2. The number of shares of treasury stock plus the number of shares outstanding equals the number of shares:

a. authorized that have not been issued.

b. authorized.

c. issued.

d. issued that have not been reacquired by the company.

3. Highly liquid short-term investments that are easily convertible into cash are called:
a. cash reserves.

b. accounts receivable.

c. trading securities.

d. cash equivalents.

4. Which of the following would be reported on a statement of cash flows as a financing activity?
a. distribution of stock dividend

b. purchase of treasury stock

c. interest paid on bonds payable

d. all of the above

5. On an indirect method statement of cash flows, a gain on the sale of plant assets is:
a. reported in the financing activities section.

b. added to net income.

c. reported in the investing activities section.

d. deducted from net income.

6. Assuming the Inventory balance at the end of the year is $125,000, and it has increased by 5% during the year. The Inventory balance at the beginning of the year was closest to:
a. $119,048.

b. $131,579.

c. $131,250.

d. $118,750.

7. Which of the following would be most likely to reveal that cost of goods sold increased by a specific dollar amount during the year?
a. ratio analysis

b. trend analysis

c. vertical analysis

d. horizontal analysis

8. Consider the following transactions:

I. Borrowed cash on a note payable, $80,000

II. Provided services on account, $10,000

III. Received cash from a customer as payment on account, $8,000

IV. Received a utility bill, $1,200

Total liabilities would be:

a. $1,200

b. $81,200

c. $98,000

d. $80,000

Reference no: EM1313254

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