Question :
71. Which of the following would be reported in the investing : 1228426
71. Which of the following would be reported in the investing section of a cash flow statement?
A. Cash received from customers.
B. Cash received from the issue of stock.
C. Cash paid to repay a bank loan.
D. Cash paid to acquire stock of another company.
72. Which of the following statements is correct?
A. The payment of a cash dividend reduces net income.
B. Cash received from an issuance of stock to stockholders is reported as a financing cash flow within the statement of cash flows.
C. Providing services to a customer on account doesn’t impact net income.
D. Interest payments are reported within the statement of cash flows as a financing activity.
73. Husky Company has provided the following information for its most recent year of operation:
Cash collected from customers totaled $89,300.
Cash borrowed from banks totaled $31,700.
Cash paid to employees totaled $32,100.
Cash paid for interest totaled $2,900.
Cash received from selling Husky stock to stockholders totaled $41,000.
Cash payments to banks for repayment of money borrowed totaled $7,500.
Cash paid for operating expenses totaled $9,600.
Land costing $25,000 was sold for $25,000 cash.
Cash paid for dividends to stockholders totaled $3,300.
How much was Husky’s cash flow from operating activities?
A. $47,600
B. $44,700
C. $41,400
D. $37,200
74. Husky Company has provided the following information for its most recent year of operation:
Cash collected from customers totaled $89,300.
Cash borrowed from banks totaled $31,700.
Cash paid to employees totaled $32,100.
Cash paid for interest totaled $2,900.
Cash received from selling Husky stock to stockholders totaled $41,000.
Cash payments to banks for repayment of money borrowed totaled $7,500.
Cash paid for operating expenses totaled $9,600.
Land costing $25,000 was sold for $25,000 cash.
Cash paid for dividends to stockholders totaled $3,300.
How much was Husky’s cash flow from financing activities?
A. $72,700
B. $59,000
C. $65,200
D. $61,900
75. Sparty Corporation has provided the following information for its most recent year of operation:
Revenues earned were $97,000, of which $9,000 were uncollected at the end of the year.
Operating expenses incurred were $39,000, of which $7,000 were unpaid at the end of the year.
Dividends declared were $11,000, of which $3,000 were unpaid at the end of the year.
Income tax expense is 30% of pretax income.
How much net income was reported on Sparty’s income statement?
A. $32,900
B. $39,300
C. $33,600
D. $40,600
76. Which of the following statements is correct?
A. Revenues are reported on the income statement regardless of whether the customer has paid for the goods or services.
B. Expenses are reported within the income statement during the period that they are paid for.
C. Net income includes a deduction for dividend payments made to stockholders.
D. Net income normally equals the net cash generated by operations.
77. During 2010, Rock Company’s cash balance increased from $79,000 to $91,300. Rock’s net cash flow from operating activities was $37,300 and its net cash flow from financing activities was $11,100. How much was Rock’s net cash flow from investing activities?
A. A net cash flow of $42,900.
B. A net cash flow of ($36,100).
C. A net cash flow of $60,700.
D. A net cash flow of ($60,700).
78. Which of the following statements is false?
A. A positive net income results in an increase in retained earnings.
B. The ending retained earnings balance from the statement of retained earnings is reported on the balance sheet.
C. The change in the cash balance on the statement of cash flows added to the beginning cash balance equals the ending cash balance.
D. The dividends reported on the statement of retained earnings are also reported as dividend expense on the income statement.
79. Which of the following is not a consequence to a company resulting from the issue of their financial statements?
A. The effect on the selling price of their stock.
B. The providing of information to their competitors.
C. The effect on bonus payments to its employees.
D. The providing of information to their auditors.
80. Which of the following statements pertaining to the audit function is incorrect?
A. The primary responsibility for the information in the financial statements lies with the auditors.
B. The audit report describes the auditor’s opinion of the fairness of the financial statements.
C. An audit ensures that the financial statements conform to generally accepted accounting principles.
D. The auditor doesn’t examine all of the transactions an entity incurred.
