Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

17. Which of the following statements about the statement of cash flows is not right? A. It does not replace the income instatement B. It

17. Which of the following statements about the statement of cash flows is not right?

A. It does not replace the income instatement

B. It provides details as to how cash changed during a period

C. it provides information about cash receipt and cash payments over a period of time

D. it measures profitability

18. Which of the following is not included in the cash and cash equivalents amount reported on the balance sheet?

A. Money market funds

B. Checking accounts

C. Treasury bills

D. Notes receivable due in 90 days

19. During the year, the company recorded services provided to customers on account. What effect will this transaction have on the debt-to-assets and times interest earned ratios?

A. Debt-to-assets ratio will decrease and the times interest earned will increase

B. debt-to-asset ratio will increase and the times interest earned will not change

C. Both ratios will decrease

D. both ratios will increase.

20. John purchased 1 share of $10 par value common stock form Utah Corporation for $50 per share. John sold that share to Stan for $60 per share. As a result of the sale by John to Stan, Utah Corporation would:

A. debit cash and credit additional paid-in capital for $10

B. debit cash and credit common stock for $10

C. debit common stock and credit additional paid-in capital for $10

D. not debit or credit any of its accounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Cost Of Quality Audit

Authors: W. Jeffrey Howard

1st Edition

1902433629, 978-1902433622

More Books

Students also viewed these Accounting questions