a.

Ability to transfer ownership.

b.

Additional taxes.

c.

Limited liability.

d.

Ability to raise capital.

e.

None of the above.

In the first three years of operations, Mattel reports the following amounts:

	Year 1	Year 2	Year 3
Revenues	$1,000	$2,300	$4,100
Cash inflows	1,200	1,800	$4,300
Expenses	800	1,500	3,000
Cash outflows	1,300	1,400	2,900
Dividends	100	200	300

Calculate the balance of Retained Earnings at the end of Year 3.

	a.	$1,100
	b.	$1,000
	c.	$2,100
	d.	$800
	e.	$1,500

When a company sells inventory which costs $8,000 to customers for $12,000 on account, which of the following is recorded.

	a.	Debit Inventory for $8,000
	b.	Debit Cost of Goods Sold for $12,000
	c.	Credit Sales Revenue for $12,000
	d.	Debit Accounts Receivable for $8,000
	e.	Credit Inventory for $12,000

When a company sells inventory which costs $8,000 to customers for $12,000 on account, which of the following is recorded.

	a.	Debit Inventory for $8,000
	b.	Debit Cost of Goods Sold for $12,000
	c.	Credit Sales Revenue for $12,000
	d.	Debit Accounts Receivable for $8,000
	e.	Credit Inventory for $12,000

A bond issued at a discount indicates that at the date of issue:

	a.	Its stated rate was lower than the prevailing market rate of interest on similar bonds.
	b.	Its stated rate was higher than the prevailing market rate of interest on similar bonds.
	c.	The bonds were issued at a price greater than their face value.
	d.	The bonds must be non-interest bearing.
	e.	The bonds are junk bonds and should be retired.

At the time a company declares a dividend:

	a.	Net income decreases
	b.	Assets decrease
	c.	Revenues increase
	d.	Stockholders equity decreases
	e.	Treasury stock increases

Gaston Co. reports the following cash activities for the year:

Receive cash from customers	$100,000
Pay cash to purchase building	$90,000
Receive cash from issuance of stock	$50,000
Pay cash for employee salaries	$40,000
Pay cash for dividend to stockholders	$20,000
Receive cash from sale of land	$70,000
Pay cash for repayment of borrowing	$80,000
Receive cash from long-term borrowing	$60,000
Pay cash for purchase of supplies	$30,000

Calculate the amount of financing cash flows?

	a.	$10,000
	b.	$20,000
	c.	$160,000
	d.	$90,000
	e.	$50,000

Which of the following expenditures associated with Equipment would not be capitalized?

	a.	Original purchase cost
	b.	Cost necessary to transport the equipment during original purchase
	c.	Cost necessary to provide utilities to operate the equipment
	d.	Cost of a major upgrade one year after the equipment is purchased
	e.	C and D would not be capitalized

Gaston Co. reports the following cash activities for the year:

Receive cash from customers	$100,000
Pay cash to purchase building	$90,000
Receive cash from issuance of stock	$50,000
Pay cash for employee salaries	$40,000
Pay cash for dividend to stockholders	$20,000
Receive cash from sale of land	$70,000
Pay cash for repayment of borrowing	$80,000
Receive cash from long-term borrowing	$60,000
Pay cash for purchase of supplies	$30,000

Calculate the amount of investing cash flows?

	a.	$10,000
	b.	$20,000
	c.	$160,000
	d.	$90,000
	e.	$50,000

When issuing stock, a corporation must obtain approval from the:

	a.	Financial Accounting Standards Board
	b.	Securities and Exchange Commission
	c.	Internal Revenue Service
	d.	International Accounting Standards Board
	e.	Government Accountability Office

Information related to the sale of a building for cash is below:

Original cost	$200,000
Accumulated Depreciation at the time of the sale	$150,000
Sale price	$70,000

How would the sale of the building be reported in the Statement of Cash Flows using the indirect method?

	a.	Add $70,000 for investing cash inflow
	b.	Subtract $200,000 for investing cash outflow
	c.	Subtract $20,000 from net income for operating cash flows
	d.	Add $70,000 for financing cash inflow
	e.	Both A and C

Information related to the sale of a building for cash is below:

Original cost	$200,000
Accumulated Depreciation at the time of the sale	$150,000
Sale price	$70,000

How would the sale of the building be reported in the Statement of Cash Flows using the indirect method?

	a.	Add $70,000 for investing cash inflow
	b.	Subtract $200,000 for investing cash outflow
	c.	Subtract $20,000 from net income for operating cash flows
	d.	Add $70,000 for financing cash inflow
	e.	Both A and C

If you could show your work/reasoning, that'd be greatly appreciated!