223.A company in NY is buying goods from a Japanese company. The goods are sold FOB San Francisco port

220. 1. The freight from Japan to San Francisco is an asset, the freight from San Francisco to New York is an expense
     2. The freight from Japan to San Francisco is an expense, the freight from San Francisco to New York is an Asset
     3. Both the freight from Japan to San Francisco and from San Francisco to New York are assets
     4. Both the freight from Japan to San Francisco and from San Francisco to New York are expenses
221. A company had the following cash flows for the year:

1. Purchased land, $60,000
2. Borrowed from a local bank, $100,000
3. Paid employee salaries, $50,000
4. Issued common stock, $75,000
5. Paid dividends, $20,000
6. Sold equipment, $40,000
7. Sold services to customers, $120,000

What amount would be reported for net financing cash flows on the Statement of Cash Flows?

A) $70,000. B) $155,000. C) $40,000. D ) ($20,000).

74.Days in the Operating Cycle equals:

1. Days in Inventory - Days in Receivables + Days in Payables
2. Days in Inventory + Days in Receivables Days in Payables
3. Days in Inventory + Days in Receivables + Days in Payables
4. Days in Inventory - Days in Receivables Days in Payables

74. The ending Retained Earnings balance of ABC increased by $1.5 million from the beginning of the year. The company's net income earned during the year is $3.5 million. What is the amount of dividends ABC declared and paid?
    1. $3.5 million. B) $2.0 million. C) $1.5 million. D) $5.0 million.

113.

ABC reports sales of $100 million. Accounts receivable at the beginning and end of the year are $6 million and $9 million, respectively. What is the amount of cash received from customers?

1. $100 million. B) $109 million. C) $97 million. D) $103 million.

141

For a journal entry with only two lines, the following entry is valid: Decrease in Revenue, Increase in Expense.

1. False B) True

142.ABC estimates uncollectible accounts based on the percentage of accounts receivable. What effect will recording the estimate of uncollectible accounts have on the accounting equation?

2. Increase assets and decrease stockholders' equity.
3. Increase liabilities and decrease stockholders' equity.
4. Decrease assets and decrease liabilities.
5. Decrease assets and decrease stockholders' equity.

143.Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of

$100,000 and each matures in 10 years. Bond X pays 8% interest while Bond Y pays 7% interest. The current market rate of interest is 7%. Which of the following is correct?

6. Both bonds will sell at a premium. B) Both bonds will sell for the same amount.

C) Bond X will sell for more than Bond Y. D) Bond Y will sell for more than Bond X.

137. 152. In accounting the word 'capitalize' means
     1. treat as an asset B) treat as capital

C) take the chance to gain advantage from. D) provide a company with capital

Net income (in millions)	$150
Shares outstanding (in millions)	300
Stock price	$20.00

160)

What is the company's price-earnings ratio?

A) 60.0. B) 40.0. C) 80.0. D) 20.0.