Question : 36.              During 2010, cash payments for wages totaled $954,500, while : 1370146

 

 

36.              During 2010, cash payments for wages totaled $954,500, while wages payable decreased by $67,800. Wages expense reported on the income statement equaled:

A)$  818,900

B)$  886,700

C)$1,022,300

D)$1,090,100

 

37.              On a statement of cash flows using the indirect format, depreciation expense is:

A)deducted from net income in the operating activities section

B)included as an outflow in the investing activities section

C)added to net income in the operating activities section

D)ignored, since it is a noncash expenditure

 

38.              On a statement of cash flows using the indirect format, amortization of the discount on a note payable is:

A)ignored, since it is a noncash expenditure

B)added to net income in the operating activities section

C)included as an outflow in the financing activities section

D)deducted from net income in the operating activities section

 

39.              On a statement of cash flows using the indirect format, amortization of the discount on notes receivable is:

A)deducted from net income in the operating activities section

B)included as an inflow in the financing activities section

C)added to net income in the operating activities section

D)ignored, since it is a noncash expenditure

 

40.               On a statement of cash flows using the indirect format, cash paid for interest is:

A)deducted from net income in the operating activities section

B)included as an outflow in the investing activities section

C)added to net income in the operating activities section

D)reported as an additional disclosure at the end of the statement.

 

41.              On a statement of cash flows using the indirect format, amortization of the premium on investments in bonds is:

A)deducted from net income in the operating activities section

B)included as an inflow in the financing activities section

C)added to net income in the operating activities section

D)ignored, since it is a noncash expenditure

 

42.              On a statement of cash flows using the indirect format, the loss on the sale of a building is:

A)ignored, since it is a noncash expenditure

B)added to net income in the operating activities section

C)included as an outflow in the investing activities section

D)deducted from net income in the operating activities section

 

43.              On a statement of cash flows using the indirect format, an increase in taxes payable is:

A)ignored, since it is a noncash expenditure

B)added to net income in the operating activities section

C)included as an outflow in the financing activities section

D)deducted from net income in the operating activities section

 

44.              On a statement of cash flows using the indirect format, an increase in prepaid insurance is:

A)ignored, since it is a noncash expenditure

B)added to net income in the operating activities section

C)included as an inflow in the financing activities section

D)deducted from net income in the operating activities section

 

45.              On a statement of cash flows using the indirect format, a decrease in unearned revenue is:

A)deducted from net income in the operating activities section

B)included as an outflow in the financing activities section

C)added to net income in the operating activities section

D)ignored, since it is a noncash expenditure

 

 

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