1) When a company reports net income, financial statement users see this as a sign that Select one: A. the company is viable. B. the company has the ability to sustain itself. C. the company has the ability to declare dividends. D. all of the above.

2) Oceans Limited sold $1,750,000 worth of goods during the current year. The cost of goods sold is $1,050,000. Credit sales were $1,575,000, of which 40% were still outstanding. How much cash was collected by Oceans Ltd.?

3)

The multi-step income statement allows readers to easily identify gross profit and profits earned from operating activities.

Select one:

True

False

4)

At the time of sale, the selling price has to be determined in order for the selling company to quantify the economic benefits of the transactions.

Select one:

True

False