Question :
41.Most investors believe that the statement of cash flows is
a.a : 1241792
41.Most investors believe that the statement of cash flows is
a.a useful source of information regarding the cash flow of an entity.
b.the only statement in an annual report whose results correlates to stock price value.
c.too complicated.
d.a useful measure of a company’s profit.
42.The amount reported on a company’s balance sheet as retained earnings is the same as the amount reported on the company’s:
a.income statement as net income.
b.statement of shareholders’ equity as beginning retained earnings.
c.statement of cash flows as cash received from operating activities.
d.statement of shareholders’ equity as ending retained earnings.
43.Which one of the following is not an asset?
a.A company’s equity in the common stock of another company.
b.A company’s trademarked name for a process.
c.Retained earnings.
d.Notes receivable.
44.Given below are several accounts from Caterpillar Company’s accounting records.
Cash $ 15,000
Accumulated depreciation7,000
Retained earnings, beginning of year22,000
Contributed capital25,000
Patents2,000
Dividends5,000
Net income for the year was $40,000. How much is total shareholders’ equity at the end of the year?
a.$86,000.
b.$88,000.
c.$87,000.
d.$82,000.
Solution:$22,000 + $25,000 – $5,000 + $40,000 = $82,000
45. Seuss Company determined its total sales were $500,000, salaries expense was $210,000, dividends paid were $15,000, rent expense was $25,000, other operating expenses were $13,000, and customers still owed $4,000 at the end of the year. How much is net income for the year?
a.$267,000.
b.$252,000.
c.$263,000.
d.$530,000.
46.The information below was taken from the 2015 annual report of Jena Corporation.
2015
2014
2013
Beginning cash balance
$ 12,000
?
$7,000
Net cash flow from operating activities
7,987
?
9,100
Net cash flow from investing activities
2,450
4,330
?
Net cash flow from financing activities
?
(9,612)
(7,500)
Ending cash balance
$13,000
?
$12,500
Which of the following is the missing amount for the net cash flow from investing activities for 2013?
a.$3,900
b.$9,950
c.$19,830
d.$2,450
47.The information below was taken from the 2015 annual report of Jena Corp.
2015
2014
2013
Beginning cash balance
$ 12,000
?
$7,000
Net cash flow from operating activities
7,987
?
9,100
Net cash flow from investing activities
2,450
4,330
?
Net cash flow from financing activities
?
(9,612)
(7,500)
Ending cash balance
$13,000
?
$12,500
Which of the following is the missing amount for the beginning cash balance for 2014?
a.$5,925
b.$8,741
c.$12,500
d.$5,282
48.The information below was taken from the 2015 annual report of Jena Corp.
2015
2014
2013
Beginning cash balance
$ 12,500
?
$7,000
Net cash flow from operating activities
7,987
?
9,100
Net cash flow from investing activities
2,450
4,330
?
Net cash flow from financing activities
?
(9,612)
(7,500)
Ending cash balance
$13,000
?
$12,500
Which of the following is the missing amount for the net cash flow from operating activities for 2014?
a.$8,110
b.$4,782
c.$8,475
d.$3,874
49.The information below was taken from the 2015 annual report of Jena Corp.
2015
2014
2013
Beginning cash balance
$12,000
?
$7,000
Net cash flow from operating activities
7,987
?
9,100
Net cash flow from investing activities
2,450
4,330
?
Net cash flow from financing activities
?
(9,612)
(7,500)
Ending cash balance
$13,000
?
$12,500
Which of the following is the missing amount for the ending cash balance for 2014?
a.$2,759
b.$7,158
c.$12,703
d.$12,000
50.The information below was taken from the 2015 annual report of Jena Corp.
2015
2014
2013
Beginning cash balance
$12,000
?
$7,000
Net cash flow from operating activities
7,987
?
9,100
Net cash flow from investing activities
2,450
4,330
?
Net cash flow from financing activities
?
(9,612)
(7,500)
Ending cash balance
$13,000
?
$12,500
Which of the following is the missing amount for the net cash flow from financing activities for 2015?
a.($21,994)
b.($9,437)
c.($1,120)
d.($14,085)
