1) All of the following items are used in preparing a statement of cash flows, except:

Adjusted trial balance

Current income statement

None of these answers are correct.

Additional information

Comparative balance sheets

2) Advance payments from customers will be immediately recognized as revenue under cash basis accounting but not under accrual basis accounting.

True

False

3) Consider the following facts for Company A: Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. What is the return on common stockholders' equity for Company A?

36%

None of these answers are correct

30%

16.9%

46.7%