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14. On the Statement of Cash Flows, a gain on the sale of Property, Plant and Equipment is section because in the 2. a subtracted

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14. On the Statement of Cash Flows, a gain on the sale of Property, Plant and Equipment is section because in the 2. a subtracted investing the amount of the gain has decreased the cash received b. added operating the amount of the pain should be included in net income c. added investing the amount of the gam is included in cash receipts d subtracted operating the amount of the gain is not the amount of cash received 15. Blue Corporation has this information: Interest Paid in Cash $25,000 Dividends Paid in Cash $41,000 Common Stock Issued for Cash $99,000 Treasury Stock Purchased for Cash $30,000 Bonds Payable Paid off in Cash $35,000 Property, Plant and Equipment Paid for in Cash $45,000 What is the net cash flow from financing activities? $(37,000) b. $(52,000) $(32,000) d. $(7,000) 16. A LIFO liquidation is related to: Purchases of Inventory that exceed Units Sold b. A lower Cost of Goods Sold Expense than expected Units in Ending Inventory entering Cost of Goods Sold Expense d. Lower Tax Payments than expected 17. Which statement about FIFO is false? a. FIFO is used by companies because it is fairly simple to monitor. b. FIFO is used by companies because it can save or defer taxes FIFO usually gives a lower cost of goods sold expense than does LIFO. d. FIFO usually gives a higher ending inventory than does LIFO. 18. Assume the stated interest rate on an issuance of bonds payable is 5%. The bonds payable have a principal or face amount of $50,000,000. Which statement is false? If the bonds are issued at $52,000,000, the market interest rate is less than 5% b If the bonds are issued at $50,000,000, the market interest rate is 5%. If the bonds are issued at $47,000,000, the market interest rate could be 3%. d If the bonds are issued at below $50,000,000, the market interest rate could be 6% 19. Popcorn Company shows this information related to its inventory. Inventory from the Perpetual Inventory Records is 9,500 units and Inventory from the Physical Count is 9,700 units. What is the best possible reason for this difference? Inventory sent back to suppliers by the company is not being recorded. b. Inventory purchases are being recorded twice. Inventory that was stolen is still recorded d. Inventory returned by customers to the company is not being recorded PTP a

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