1. LiveWire manufactures inventory which, on average, takes 15 months to sell. On the balance sheet, this inventory should be classified as a:

A. non-current liability.

B. current asset.

C. current liability.

D. non-current asset.

2. December 31, 2021 is most likely to be a heading on which financial statement?

A. Statement of cash flows

B. Income statement

C. Statement of stockholders' equity

D. Balance sheet

3. Overton, Corp. reports the following account balances:

Accounts receivable $12,300 Buildings $31,900 Cash $19,500 Common stock $6,200 Salaries payable $2,900 Supplies $3,000

Assuming the accounts reflect normal activity, what amount of current assets would be reported on the balance sheet?

A. 72,900

B. 31,800

C. 66,700

D. 34,800

4. A valuable internal perspective on the companys operations is provided by:

A. the audit opinion.

B. management's discussion and analysis.

C. footnote disclosures in the 10-K.

D. Wall Street analysts.

5. The primary benefit of separately reporting discontinued operations is to enhance:

A. reliability.

B. timeliness.

C. neutrality.

D. predictive ability.

6. Which of the following is NOT an item classified as Other Comprehensive Income (OCI)?

A. Foreign currency translation adjustments

B. Fair value adjustment on a cash flow hedge

C. Unrealized holding gains on available-for sale equity securities

D. Unrealized holding losses on available-for-sale debt securities

7. Revenues differ from gains in that:

A. revenues are from product sales while gains are from providing services.

B. revenues are earned from a companys normal operations, while gains are from peripheral transactions.

C. revenues are found on the income statement while gains are found on the balance sheet.

D. revenues are material while gains are immaterial.

8. Freemont Corporation reported net income of $1,100,000 for its fiscal year ended December 31, 2022. Preferred stock dividends of $150,000 were declared during the year. Fremont had 2,000,000 shares of common stock at the beginning of 2022 and issued an additional 500,000 shares on April 1, 2022. What would be Fremonts basic earnings per share for 2022?

A. 0.21

B. 0.40

C. 0.38

D. 0.46

9. Perrymore reports the following items related to the statement of cash flows:

Net income $745,000 Gain on sale of equipment $17,000 Purchase of equipment $26,200 Depreciation expense $49,000 Increase in accounts receivable $3,500 Increase in income tax payable $8,600 Cash received from sale of bonds $86,000

What amount would Perrymore report for cash from operating activities?

A. 816,100

B. 782,100

C. 832,100

D. 850,900

10.Squeeze Industries produced the following items related to the statement of cash flows:

Equipment beginning balance: $65,000; ending balance: $72,000 Accumulated depreciation, equipment beginning balance: $22,000; ending balance: $18,000 Depreciation expense, equipment $13,000; Gain on sale of equipment $8,000 Cash purchase of equipment $30,000

One equipment sale was made for cash. How much cash was received from this sale?

A. 31,000

B. 23,000

C. 14,000

D. 35,000