Reference no: EM132492473

Question 1: In which section of the statement of cash flows would you add or subtract a change in Accounts payable, and why?

A. The operating section, to recognize that not all expenses are cash expenses.

B. The financing section, to recognize amounts paid through third-party financing.

C. The operating section, to make things balance and provide up-to-date information for investors

D. The financing section, to compute correctly the amount that the company has reinvested through purchases.

Question 2: An example of a cash outflow from investing activities is

A. Issuance of a note payable

B. paying cash dividends

C. making a loan to another company

D. The purchase of treasury stock.

Question 3: Trucker, Inc's net sales decreased from $90,000 in year one to $45,000 in year two, and its cost of goods sold decreased from $30,000 in year one to $20,000 in year two. The vertical analysis based on sales for cost of goods sold for the two periods (rounded to nearest tenth of a percent) is

A. 44.40% and 33.3%

B. 300% and 225%

C. 33.3% and 44.4%

D. 225% and 300%

Question 4: Knutson company received 5,000 shares of its $15-par common stock for $13/shares the debit to treasury stocks is

A. $75,000

B. $65,000

C.$8,000

D.$10,000