Question : 81. If the balance sheet shows the same beginning and ending : 1230561

Accounting

81. If the balance sheet shows the same beginning and ending balance for depreciable assets, there
A. have been no financing activities during the year
B. have been no investing activities during the year
C. may have been investing activities
D. may have been financing activities
E. have been no investing and financing activities during the year

82. Financing activities on the cash flow statement do not include.
A. issuance of stock
B. payment of dividends
C. borrowing from banks
D. payment of interest expense
E. acquiring previously issued bonds

83. Why is depreciation expense added back to net income in the operating section of the indirect cash flow statement?
A. depreciation expense represents cash outflows for a firm
B. depreciation expense represents cash inflows for a firm
C. depreciation expense represents a noncash expense that must be moved to the investing section of the cash flow statement
D. depreciation expense represents a noncash expense that must be added to net income to cancel its affect within the net income calculation
E. depreciation expense represents a cash expense that must be added to net income to cancel its affect within the net income calculation

84. If cash decreases by $10,000 during the year, liabilities decrease by $5,000, and shareholders’ equity increases by $5,000, what is the total change in noncash assets for the year?
A. a decrease of $5,000
B. an increase of $10,000
C. a decrease of $10,000
D. an increase of $5,000
E. an increase of $15,000

85. Which is a source of cash?.
A. increase in inventory
B. decrease in bonds payable
C. decrease in accounts payable
D. decrease in accounts receivable
E. increase in prepaid assets

86. Which is a use of cash?
A. an increase in inventory
B. a decrease in accounts receivable
C. decrease in equipment
D. an increase in accounts payable
E. an increase in bonds payable

87. In a statement of cash flows, interest payments to lenders should be classified as cash outflows for
A. operating activities
B. financing activities
C. investing activities
D. lending activities
E. exchange transactions

88. In a statement of cash flows, payments to acquire long-term bonds or other debt instruments with maturities greater than one year of other entities should be classified as cash outflows for
A. operating activities
B. financing activities
C. investing activities
D. lending activities
E. exchange transactions

89. In a statement of cash flows, proceeds from the issuance of common stock should be classified as cash inflows for
A. operating activities
B. financing activities
C. investing activities
D. lending activities
E. exchange transactions

90. The Smith Company had retained earnings at the beginning of the year totaling $100,000. At the end of the year retained earnings totaled $200,000. Depreciation was $50,000 for the year and the company paid dividends of $150,000. What is the amount recorded as Net Income in the operating activities section of the statement of cash flows prepared using the indirect method?
A. a net loss of $150,000
B. a net income of $150,000
C. a net income of $0
D. a net income of $250,000
E. a net loss of $50,000

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July 1, 2023

11) If Russia has a comparative advantage in the production of wheat and China has a comparative advantage in the production of textiles, then

A) neither country has anything to gain from specialization and trade.

B) it is reasonable to expect that specialization will benefit both countries, but trade will not.

C) it is reasonable to expect that specialization and trade will benefit both countries.

D) it is reasonable to expect that trade will benefit both countries, but specialization will not.

12) If Brazil has a comparative advantage in the production of coffee compared to the United States, then

A) Brazil also has an absolute advantage in the production of coffee.

B) the United States has an absolute advantage in the production of coffee.

C) Brazil can produce coffee at a lower opportunity cost than the United States.

D) the United States cannot produce coffee.

13) The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage,

A) only the production of wheat will increase.

B) the production and consumption of both goods will increase.

C) only the production of both goods will increase.

D) only the consumption of both goods will increase.

14) Suppose that Japan and India are both engaged in the production of radios and rice, and that Japan has an absolute advantage in the production of both goods. If India has a lower opportunity cost for producing rice, then

A) India has a comparative advantage in rice production, but there will be no gains from specialization and trade.

B) Japan has a comparative advantage in the production of both goods.

C) India has a comparative advantage in the production of rice, but it is outweighed by Japan's absolute advantage in rice production.

D) India has a comparative advantage in the production of rice, and specialization and trade between the two countries can be mutually beneficial.

15) If the slopes of the production possibility frontiers involving sugar and rice in countries A and B are equal,

A) the opportunity cost of producing sugar is less in Country A.

B) the opportunity cost of producing rice is less in Country B.

C) specialization does not benefit either country.

D) each country will produce identical quantities of sugar and rice.

16) Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a comparative advantage in the production of copper, then Chile

A) has a lower opportunity cost for copper, which means that it should specialize in production of copper and engage in trade.

B) has a lower opportunity cost for producing copper, but specialization is not feasible because Argentina has a lower monetary cost of copper production.

C) has a higher opportunity cost for copper, which means it should specialize in the production of wheat and engage in trade.

D) should continue to produce copper, but only for domestic consumption, because trade is not a viable option.

Refer to the information provided in Table 19.1 below to answer the questions that follow.

Table 19.1

17) Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of bananas is

A) 1/2 bushel of oranges.

B) 1 bushels of oranges.

C) 2 bushel of oranges.

D) 5 bushels of oranges.

18) Refer to Table 19.1. In Guatemala, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.

B) 1 bushels of bananas.

C) 2 bushel of bananas.

D) 4 bushels of bananas.

19) Refer to Table 19.1. In Mexico, the opportunity cost of 1 bushel of oranges is

A) 1/2 bushel of bananas.

B) 1 bushels of bananas.

C) 2 bushel of bananas.

D) 5 bushels of bananas.

20) Refer to Table 19.1. In Guatemala, the opportunity cost of 1 bushel of bananas is

A) 1/2 bushel of oranges.

B) 1 bushels of oranges.

C) 2 bushel of oranges.

D) 4 bushels of oranges.