Question
Interest revenue earned on held-to-maturity investments is reported on the income statement in the ________ section. A.other revenues and expenses B.current assets C.operating income D.minority
Interest revenue earned on held-to-maturity investments is reported on the income statement in the ________ section.
- A.other revenues and expenses
- B.current assets
- C.operating income
- D.minority interest
Unrealized gains or losses on available-for-sale investments occur when a company adjusts the investment to ________.
- A.fair value but has not yet disposed of the asset
- B.fair value when an asset is disposed
- C.average value but has not yet disposed of the asset
- D.average value when an asset is disposed
Realized gains or losses on available-for-sale investments represent the difference between the ________.
- A.historical cost and the average market value of the investment
- B.historical cost and the current market value of the investment
- C.cash received at time of disposition and the fair value of the investment
- D.cash received at time of disposition and the cost of the investment
The rate of return on total assets measures a company's ________.
- A.ability to meet its short-term obligations
- B.ability to repay its long-term debt
- C.success in using assets to earn income
- D.success in earning high returns on investments in stocks and bonds of other companies
Which of the following is the correct formula for calculating rate of return on total assets?
- A.(Net income + Interest expense) / Average total assets
- B.(Net income - Interest expense) / Average total asset
- C.(Net income - Interest expense) / Total assets
- D.Total equity / Total assets
A business's cash receipts and cash payments for a specific period are reported on a(n) ________.
- A.income statement
- B.balance sheet
- C.statement of cash flows
- D.cash reconciliation statement
Which of the following sections of the statement of cash flows is presented differently between the direct method and indirect method?
- A.investing activities
- B.financing activities
- C.operating activities
- D.non-cash activities
Which of the following statements accurately describes the statement of cash flows?
- A.It shows the relative proportion of debt and assets.
- B.It is the link between the accrual-based income statement and the cash reported on the balance sheet.
- C.It indicates when long-term debt will mature.
- D.It is the link between net income and earnings per share.
Which of the following is the typical order of the sections on a statement of cash flows?
- A.operating, financing, investing
- B.financing, investing, operating
- C.investing, operating, financing
- D.operating, investing, financing
Allen Services purchased 20 delivery vehicles by issuing a 20-year installment note payable for $720,000. On the statement of cash flows, this transaction would be shown in the ________.
- A.investing activities section
- B.non-cash investing and financing activities section
- C.operating activities section
- D.financing activities section
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started