Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by the major categories on the statement: Entity A sold used equipment for cash.

		Cash Flows From Operating ActivitiesAdd to Net Income
		Cash Flows From Operating ActivitiesDeduct from Net Income
		Cash Flows From Investing Activities
		Cash Flows From Financing Activities
		Non-cash

Very often, failure to record a liability means failure to record a(n)

		footnote.
		asset conversion.
		revenue.
		expense

On September 1, 2023, Entity E borrowed $70,000 on a one-year, 8% note, interest and principal due at maturity. What is the maturity value of the note?

		71,867
		$1,867
		$5,600
		75,600

When does a cash dividend become a liability of the corporation?

		at the payment date.
		at the declaration date.
		at the split date
		at the record date.

Entity D sold 1,000 subscriptions (at $120 per subscription) to a 6-concert series in January 2020. Entity D then debited Cash and credited Unearned Revenue. After the first concert, what entry should Entity F make?

		Dr. Unearned revenue 100,000 Cr. Revenue 100,000
		Dr. Revenue 100,000 Cr. Unearned revenue 100,000
		Dr. Revenue 20,000 Cr. Unearned revenue 20,000
		Dr. Unearned revenue 20,000 Cr. Revenue 20,000

Entity C does not account for sales taxes separately when making sales. The sales tax rate is 8%. If the total amount collected was $648,000, how much was the sales tax?

		$600,000
		$48,000
		Cannot be determined.
		$99,840

Entity A prepares its Statement of Cash Flows in accordance with US GAAP using the indirect method. Indicate the reporting of the following transaction or event by the major categories on the statement: Taxes Payable increased during the year.

		Cash Flows From Operating ActivitiesAdd to Net Income
		Cash Flows From Operating ActivitiesDeduct from Net Income
		Cash Flows From Investing Activities
		Cash Flows From Financing Activities
		Non-cash

On January 1, 2023, Entity B issued $600,000 of 5%, 5-year bonds at 98. The bonds pay interest annually on December 31 and Entity D amortizes any premium or discount using the straight-line method. These bonds were issued at

		at par for $600,000.
		none of the above.
		a premium of $12,000.
		a discount of $12,000.

Dividends in arrears on cumulative preferred stock

		never have to be paid, even if common dividends are paid.
		should be recorded as a current liability until they are paid.
		enable the preferred stockholders to share equally in corporate earnings with the common stockholders.
		must be paid before common stockholders can receive a cash dividend.