1) The following items were reported on the statement of financial positions and statement of comprehensive income for Hawley Company:

Accounts receivable, 31 December 2012$100 000

Accounts receivable, 31 December 2013$144 000

Sales2010$945 000

How would the change in accounts receivable be reported in the operating activities section of Hawley's statement of cash flows under the indirect method?

a.As an addition to total comprehensive income

b.As a deduction from total comprehensive income

c.As an addition to sales

d. As a deduction from sales

2)The shareholders' equity section of the 30 June 2013, statement of financial position for Bravo Bistro Ltd appeared as follows.

Ordinary shares, 2 000 shares $7 000

Retained earnings $5 400

Total shareholders' equity $13 000

Assume that all of the 2 000 shares of Bravo Bistro Ltd's that was issued as of 30 June 2013, was issued at $3.50 per share.

On 1 September 2013, Bravo Bistro Ltd reacquired 1 000 of its ordinary shares for $5.50 per share.

The journal entry to record the transaction on 1 September includes a credit to what account and for what amount?

a. $3 000 to ordinary shares

b.$3 000 to contributed capital

c. $5 500 to cash

d. $5 500 to retained earnings

3)When a company issues a share dividend all of the following occur except:

a.Total Equity remains the same

b. Business' overall liquidity is not affected

c.Dr Cash

d.Cr Contributed Capital

4)Matthew Robins reported the following information for 2013 and 2014:

Salaries payable, 30 June 2013$30 000

Salaries payable, 30 June 2014$15 000

Salaries expense2013/ 14 financial year$80 000

How much cash was paid for salaries during 2013/14 financial year?

a. $75 000

b. $95 000

c. $60 000

d. $65 000