15_

cash flows from investing activities is the same by using either the direct method or indirect method statement of cash flows.

Select one:

True

False

16_

if the cost of goods sold is $ 400,000 and credit purchases is $250,000. the trade payable balance at 1/1 is $20,000 and at 31/12 is $24,000. the payable days turnover is

a.

32.12 days

b.

20.1 days

c.

21.9 days

d.

29.2 days

17_

which of the following ratios indicate the market value of the share to earnings per share

a.

dividends yield

b.

dividends pay-out

c.

earnings per share

d.

price to earnings

18_

the operating expenses represented as $ 150,000 including depreciation expense $ 15,000. during the year prepaid insurance increased by $ 7,000 and the salaries payable increased by $ 9,000. the cash paid for operating expenses is

a.

$ 133,000

b.

$ 137,000

c.

$ 163,000

d.

$ 119,000

19_

Moorman Corporation reports the following information:

Correction of understatement of depreciation expense

in prior years, net of tax $ 430,000

Dividends declared 320,000

Net income 1,000,000

Retained earnings, 1/1/10, as reported 2,000,000

Moorman should report retained earnings, 31/12/10, as adjusted at

Select one:

a.

$1,820,000

b.

$3,110,000

c.

$2,250,000

d.

$3,430,000

20_

the best sentence reflect the increase in inventory balance at the end of the year :

Select one:

a.

increase the current ratio and quick ratio

b.

increase the quick ratio.

c.

increase the current ratio

d.

decrease the current ratio and quick ratio.

21_

if Ali Co. has common share ( $ 0.25 par value) $100,000. the market value per share is $ 2. the company generates net income as $ 40,000 and dividends announced is $ 10,000. the dividends yield ratio is

a.

12.5%

b.

1.25%

c.

12.5 times

d.

25%

22_

if the beginning balance of the equipment is $ 50,000 and the ending balance is $ 65,000. During the year an equipment costs $12,000 with an accumulated depreciation on it is $ 4,000 was sold. the cash flows from investing activities should have an outflow of:

a.

$ 15,000

b.

$ 12,000

c.

$ 27,000

d.

$ 10,000