061582RR - Corporations Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer 1. Fine Furniture Company had a net income of $50,000. Accounts receivable increased by $30,000; inventory decreased by $20,000; amounts payable increased by S4,000; and salaries payable decreased by S1,000. The amount of cash flow from continuing operating activities under the indirect method is A. $43,000 B. $37,000 C. S65,000 D. $55,000 2. Tucker. Inc.'s net sales decreased from S90,000 in year one to $45,000 in year two, and its cost of goods sold decreased from S30,000 in year one to $20,000 in year two. The vertical analysis based on sales for cost of goods sold for the two periods (rounded to nearest tenth of a percent) is A. 300% and 225%. B. 44.4% and 33.3%. C. 225% and 300%. D. 33.3% and 44.4% 3. A business wanting to incorporate must file articles of incorporation with A. the state office dealing with incorporation. B. the federal govemment. C. the local government. D. any state in which they will do business. 4. Which is a value placed on a certificate for a share of the company's stock? A. Market value B. Additional paid-in capital C. Paid-in capital D. Stated value 5. A purchase of new equipment on a note payable under the direct method is reported A. as a separate disclosure as a non-cash transaction B. in the investing section of the cash flow statement. C. in the financing section of the cash flow statement. D. in the operating section of the cash flow statement