1.) If $200,000 of bonds are issued during the year but $120,000 of old bonds are retired during the

year, the cash flow statement in good form will show a(n)

a. net increase in cash of $80,000.

b. net decrease in cash of $80,000.

c. increase in cash of $200,000 and a decrease in cash of $120,000.

d.net gain on retirement of bonds of $80,000.

2.) Cash receipts from customers are greater than sales revenue when there is

a. an increase in accounts receivable.

b. a decrease in accounts receivable.

c. an increase in cost of goods sold.

d. a decrease in cost of goods sold.

3.) Which of the following is not a component of five-step framework to the contract-based approach of revenue recognition?

a. Determining the transaction price in the overall contract.

b. Allocating the transaction price evenly through the contract.

c. Identifying the contract with a customer.

d. Identifying the performance obligations in the contract.