Question : 21) When comparing net cash provided by operating activities using : 1171190

21) When comparing net cash provided by operating activities using the indirect versus direct methods:

A) net cash is higher using the indirect method.

B) net cash is lower using indirect method.

C) there is no difference between the two methods.

D) depreciation expense is used in the direct method.

22) Rick Corporation’s Accounts Receivable increased by $25,000 during the year. What is the adjustment to the cash flow statement when it is prepared by the indirect method?

A) Subtract the increase from the net income in operating activities section.

B) Add the increase to the net income in operating activities section.

C) Add the increase in the investing activities section.

D) Subtract the increase in the financing activities section.

23) Collins Corporation reported net income of $35,000; depreciation expenses of $20,000; a decrease in Accounts Payable of $2,000; and an increase in Accounts Receivable of $3,000. Net cash flow from operating activities using the indirect method is:

A) $55,000.

B) $54,000.

C) $50,000.

D) $56,000.

24) Smith Corporation reported net income of $54,000, depreciation expenses of $10,000, an increase in Accounts Payable of $3,000 and a decrease in Accounts Receivable of $1,500. Under the indirect method, net cash flow from operating activities is:

A) $62,500.

B) $59,500.

C) $68,500.

D) $65,500.

25) Trundle Corporation reported net income of $40,000; depreciation expense of $11,000; sales of additional common shares of $20,000; and an increase in Accounts Payable of $7,000. Net cash flow from operating activities using the indirect method is:

A) $41,000.

B) $32,000.

C) $33,000.

D) $58,000.

26) Big Toy Corporation’s records show net income of $20,000; depreciation expense of $10,000; and cash dividends declared and paid of $4,000. The amount of cash provided by operating activities using the indirect method is:

A) $40,000.

B) $30,000.

C) $20,000.

D) $10,000.

27) Carmen’s Candies’ Net Income was $40,000. Other accounts that changed included: Accounts Receivable decreased by $30,000; Merchandise Inventory increased by $20,000; Accounts Payable increased by $4,000; and Salaries Payable increased by $1,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A) $33,000.

B) $47,000.

C) $55,000.

D) $61,000.

28) Fidelity Furniture’s Net Income was $25,000. Other accounts that changed included: Accounts Receivable increased by $18,000; Merchandise Inventory decreased by $7,000; Accounts Payable increased by $4,000; and Salaries Payable decreased by $3,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A) $57,000.

B) $43,000.

C) $37,000.

D) $15,000.

29) Which of the following items would be subtracted from Net Income to compute Net Cash Flow from Operating Activities under the indirect method?

A) A decrease in Merchandise Inventory

B) An increase in Accrued Payables

C) A decrease in Accounts Payable

D) A decrease in Prepaid Insurance

30) The records of Ashley Boutique showed Net Loss, $30,000; Depreciation Expense, $25,000; and decrease in Supplies on Hand, $25,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A) $15,000.

B) $20,000.

C) ($10,000).

D) ($15,000).

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.