1) If the market interest rate is lower than the contractual interest rate, bonds will sell a. at face value. b at a premium. c. at a discount. only after the stated interest rate is increased. d. 2) Blass Corporation reported net income of $115,000 for the year ended December 31,2016. During the year, inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation expense was $18,000 ar a gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2016 usingt indirect method was a. $107,000. b. $119,000. c. $137,000. d. $109,000. 3) Which of the following would not be an adjustment to net income using the indirect method? Depreciation Expense a. b. Amortization Expense An increase in Building c. d. An increase in Prepaid Insurance 4) The acquisition of equipment by issuing common stock is a. b. c. d. only reported if the statement of cash flows is prepared using the direct method. a cash transaction and would be reported in the body of a statement of cash flows. a noncash transaction and would be reported in the body of a statement of cash flows. a noncash transaction which is not reported in the body of a statement of cash flows. 5) The information to prepare the statement of cash fows usually comes from each of the following except a. b. c. d. the prior year's income statement the current income statement. the comparative balance sheet. additional information. 6) The sale of bonds above face value a. will have no net effect on Interest Expense by the time the bonds mature. b. is a rare occurrence. c. will cause the total cost of borrowing to be more than the bond interest paid. d. will cause the total cost of borrowing to be less than the bond interest paid. 7) When a company retires bonds before maturity, the gain or loss on redemption is the difference between th paid and the a. face value of the bonds. b. maturity value of the bonds. c. carrying value of the bonds. d. original selling price of the bonds TAKE HOME