1. Operating activities are most closely related to:

A. long term liabilities and stockholders equity

B. long term assets

C. current assets and current liabilities

D. dividends and treasury stock

2. Hobby gas station earned net income of $71,000 after deducting depreciation of $7,000 and all other expenses. Current assets decreased by $6,000, and current liabilities increased by $8,000. How much was hobby gas stations cash provided by opening activities?

A. $50,000

B. 92,000

C. $80,000

D. $62,000

3. Which item does not appear on a statement of cash flows prepared by the indirect method?

A. Gain on sale of land

B. Collections from customers

C. Depreciation expense

D. Net income

4. Which of the following is not part of manufacturing overhead for producing a computer?

A. Manufacturing plant utilities

B. Manufacturing plany property Taxes

C. Insurance on plant and equipment

D. Depreciation on delivery trucks

5. Which of the following is direct cost of manufacturing a sport boat?

A. Cost of boat engine

B. Salary of an engineer who rearranges plant layout

C. Depreciation on plant and equipment

D. Coat of customer service hotline