38) When using the indirect method to complete the cash flows from operating activities section of the statement of cash flows, what is the proper disposition of depreciation expense? A) Add depreciation to net income. B) Subtract depreciation from net income. C) Disregard depreciation because it relates to an investing activity D) Disregard depreciation because it is a noncash expense. 59) Which inventory costing method will produce an amount for cost of goods sold that is closest to current market value? A) LIFO B) Specific identification C) FIFO D) Weighted average 60) Knell Company paid its sales employees $15,000 in sales commissions. What impact will this transaction have on the firm's working capit A) Working capital decreases B) Working capital increases C) There is no impact on working capital D) Not enough information is provided to answer the question 61) Franklin Company issued a $40,000 note to the Mercantile Bank on August 1, 2018. The note carried a one-year term and a 12% rate of interest. How will the adjustment, dated December 31. 2018, to record accrued interest expense impact the elements of the financial statements? A) Increase liabilities and decrease equity by $2,000 B) Decrease assets and decrease retained earnings by $2,000 C) Increase liabilities and decrease equity by $1,600 D) Decrease equity and increase liabilities by $4.800 62) Which of the following statements best describes the term "par value A) An amount used in determining a corporation's legal capital B) The number of shares currently in the hands of stockholders C) The amount that must be paid to purchase a share of stock D) Determined by dividing total stockholder's equity by the number of shares of stock 63) Which of the following statements about par value is true? A) Par value may be revised each time a company issues more shares of stock. B) Par value has little connection to the market value of the stock. C) Par value dictates the initial price of the stock. D) Par value is generally greater than market value. ureau pour Gmail