Reference no: EM132513889

Question 1: The Dallas Cowboys, an American football team, generates revenue from sponsorships, merchandising, broadcasting and ticket sales. In 2019, the Cowboys brand was valued at $5 billion, up from $4.8 billion in 2018. Further, the Cowboys generated $365 million in EBITDA. Based on this, the Cowboys should

A. Debit intangible assets by $365 million and credit gain by $365 million

B. Debit intangible assets by $365 million and credit retained earnings by $365 million

C. Debit intangible assets by $200 million and credit common stock by $200 million

D. Debit intangible assets by $200 million and credit gain by $200 million

E. Not make any entry

Question 2: An accounting liability arises when a firm

A. Signs a new labor union contract which includes a 6% pay raise for its union employees

B. Signs a contract to purchase 100,000 units of inventory from a supplier over the next two years

C. Receives inventory previously ordered but not paid for

D. Is sued by a supplier for a failure to pay for services rendered, valued at $100,000

E. Both A and C

F. Both B and C

G. Both C and D

Question 3: In the U.S., which of the following items will not be a part of "Goodwill"?

Productive workforce
Patents
Synergies
Overpayment
Company culture

Question 4: Why is bad debt expense added back to net income in the operating section of the indirect cash flow statement?

A. Bad debt expense represents a noncash expense that must be moved to the investing section of the cash flow statement

B. Bad debt expense represents cash outflows for a firm

C. Bad debt expense represents a noncash expense that must be added to net income to calculate cash flows from operations

D. Bad debt expense represents cash inflows for a firm

Question 5: The Frango Mint Corporation had net income of $3,000,000. They also reported the following:

Depreciation: $500,00
Purchase of plant assets: $250,000
Disposals of plant assets with net book value of $100,000 resulted in a $60,000 gain
Stock issuance: $125,000
Accounts receivable decreased by $25,000
Accounts payable decreased by $40,000
Dividends paid: $30,000
Interest expense: $5,000

How much was Frango's net cash flow from investing activities?

A. $-150,000

B.$250,000

C.$90,000

D.$-90,000

E.$500,000