1. The statement of cash flows reports cash flows from the activities of a. Operating, purchasing, and investing. b. Borrowing, paying, and investing. c. Operating, investing, and financing. d. Using, investing, and financing. 2. The Jackson Corporation has the following data: $30,000 13,000 11,000 Retained earnings as of January 1, 2013 Net income for 2013 Cash dividends declared and paid in 2013 After the December 31, 2013 closing entries, what is the amount of retained earnings? a. $46,000 b. 35,000 C. 32,000 d. 2,000 For each transaction recorded in an accounting system, the basic equation that must be maintained at all times is: 3. a. Assets Liabilities + Stockholders' Equity. b. Cash Increases- Cash Decreases. c. Revenues Expenses + Dividends. d. Assets Liabilities What is the primary purpose of financial accounting? 4. a. Determine the amount of tax liability owed to the government. b. Communicate business transactions to internal management. Measure business transactions and communicate those measures to external users to make decisions. c. Measure the profitability of the company in order to assist employees with On December 1, 2012, Old World Deli signed a $300,000, 500, six-month note payable World Deli records the appropriate adjusting entry for the note on December 31, 2012. d. making decisions. 5. with the amount borrowed plus accrued interest due six months later on June 1, 2013. Old vhatamount of cash wilbe needed to pay back the note payable plus any all interest on June 1, 2013? a. $300,000. b. $301,250. c. $306,250. d. $307,500