Reference no: EM132593032
Question 1: During the year, ABC Corporation's Treasury Stock account increased $46,000 due to a cash purchase, cash dividends of $42,000 were paid and the company reported net income of $200,000. On the statement of cash flows (indirect method), Net cash used by financing activities is:
Select one:
a. ($88,000).
b. ($158,000).
c. ($112,000).
d. ($154,000).
Question 2: If bonds are issued at a premium, the carrying value of the bonds will be greater than the face value of the bonds for all periods prior to the bond maturity date.
Select one:
a. TRUE
b. FALSE
Question 3: Assume that the S & B partnership agreement gave Steely 60% and Breck 40% of partnership income and losses. The partnership lost $27,000 in the current period. This implies that Steely's share of the loss equals $16,200, and Breck's share equals $10,800.
Select one:
a. TRUE
b. FALSE
Question 4: On a statement of cash flows prepared with the indirect method, financing activities do NOT include:
Select one:
a. payment of dividends.
b. payment of interest on long-term debt.
c. sale of treasury stock.
d. payment of principal amounts of long-term debt.
Question 5: In 2019, ABC Corporation purchased treasury stock with a cost of $49,000. During the year, the company declared and paid dividends of $8000 and issued bonds payable for $1,100,000. Net cash provided by financing activities for 2019 is:
Select one:
a. $1,092,000.
b. $1,100,000.
c. $1,051,000.
d. $1,043,000.