8.

Question 8

The ending balance in Accounts Payable on Company A's Year 2 Balance Sheet is $180,000. The company purchase on account inventory of $200,000 during Year 2, and paid suppliers $40,000 in cash. What is the beginning balance in Accounts Payable on the Year 2 Balance Sheet? Assuming no other transactions affected the account during the year.

Hint: you may find it helpful to use a t-account as you work through this question.

1 point

$160,000

$20,000

$380,000

$340,000

9.

Question 9

Company A purchased 1% of Company B's outstanding stock for $50,000 as a short-term investment. Which of the following related to the purchase will be found in the Statement of Cash Flows?

1 point

Financing Activities: $50,000, cash outflow

Operating Activities: $50,000, cash inflow

Investing Activities: $50,000, cash outflow

Operating Activities: $50,000, cash outflow

10.

Question 10

The beginning balance in Inventory on Company A's Year 2 Balance Sheet is $20,000. The company purchased inventory for $200,000 during Year 2, sold inventory with book value of $105,000 for $145,000. What is the ending balance in Inventory on the Year 2 Balance Sheet? Assuming no other transactions affected the account during the year.

Hint: you may find it helpful to use a t-account as you work through this question.

1 point

$75,000

$240,000

$115,000

$260,000

11.

Question 11

The net decrease in Prepaid Expenses (Prepaid) amounts to $30,000 and the net increase in Accounts Payable (AP) is $20,000. Assuming no inventory provision involved, what is the net effect of Inv and AP on the adjustments to Net Income if the indirect method is used in the Statement of Cash Flows?

1 point

Minus $50,000

Plus $10,000

Minus $10,000

Plus $50,000

12.

Question 12

The beginning balance in Loan Payable on Company A's Year 2 Balance Sheet is $180,000. The company took out new loans of $200,000 during Year 2, and repaid $40,000 of loans. What is the beginning balance in Loan Payable on the Year 3 Balance Sheet? Assuming no other transactions affected the account during the year.

Hint: you may find it helpful to use a t-account as you work through this question.

1 point

$20,000

$160,000

$380,000

$340,000