Intermediate Accounting

1. The Depletion is applied to the following assets: A. Fixed Assets. B. Intangible assets. C. Current assets. D. None of the above.

2. Which of the following is considered a sale of receivables: A. Pledging receivables. B. Assigning receivables. C. Factoring receivables without recourse. D. None of these.

3. The acid-test ratio is also known as the: A. Current ratio. B. Debt equity ratio. C. Times interest earned ratio. D. Quick ratio.

4. In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from

a.	brokerage activities.
b.	financing activities.
c.	investing activities.
d.	operating activities.

5. The working capital is found by the following formula: A. Assets-Liabilities B. Assets-Equity C. Current assets-Current Liabilities D. Current assets-Liabilities

6. An earthquake destroyed the home office building of a company located in an inland city. This should be reported as a(n)

a.	extraordinary loss.
b.	prior period adjustment.
c.	loss from continuing operations.
d.	loss from discontinued operations.