Reference no: EM132553476

Problem 1: Cash from operating activities includes ________

all cash receipts and all cash disbursements for long-term business assets

all cash receipts and all cash disbursements for loans, contributions from owners, and distributions to owners

all cash receipts and cash disbursements for routine sales and payments made in the course of doing business

detailed estimates of the sources of cash and uses of cash

Problem 2: Stock that has been sold and then repurchased by the issuing corporation is called ________ stock.

authorized

issued

outstanding

treasury

Problem 3: Harry & Co purchased books in July. The books were sold to customers in August. Harry & Co received the final cash payments in September. According to the revenue-recognition principle, when should revenue be recorded?

July

August

September

Both August and September

Problem 4: Fishy & Co had revenues of $2,000, cost of goods sold of $780, advertising expense of $100, and interest expense of $25. Net income was ________.

$1,095

$1,120

$1,195

$1,220

Problem 5: The number of shares of stock a corporation may issue when a corporation is formed is called ________ shares.

Authorised

Issued

Outstanding

treasury

Problem 6: Depreciation is ________.

the loss in market value of an asset

the allocation of a long-term asset's cost to an expense account over the asset's life

an increase in an asset's value over time or usage

the revenue earned by a long-term asset over its useful life

Problem 7: Accounts payable represents ________.

amounts owed by the company to suppliers

amounts owed to the company by customers

Expenses

shareholders' equity

Problem 8: An accrual is ________.

recorded when cash is paid in advance of receiving the service.

another term for a deferral

a transaction in which the exchange of dollars comes before the action takes place

a transaction in which the action comes before the exchange of cash

Problem 9: A company has a net income of $150 million, depreciation expenses of $20 million, after-tax interest expense of $10 million, after-tax interest income of $30 million, increase in accounts receivable of $10 million, decrease in inventory of $20 million and decrease in accounts payable of $40 million. What is the net cash provided by the company's operating activities for the year?

$150 million

$120 million

$180 million

$140 million

Problem 10: Which of the following is a current asset?

Land

Five-year bank loan

Building

Cash and cash equivalents