Multiple choice questions

Pare 2 SECTION A A statement of ash flows is generated to show which of the following? (A) The revenues the company has earned (B) The expenses the company incurred during the time period. (C) The inflow and outflow of cash during the time period. (D) How profits were generated. (2 mark) Which of the following describes the financing activities as shown in the statement of cash flows? (A) Includes increases and decreases in long-term assets (B) Includes transactions affecting the capitalization of the business (C) Includes transactions that primarily impact current assets and current liabilities (D) Shows the beginning and ending balance of cash (2 marka) Batra Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement Sales revenue $240,000 Interest revenue 1,000 Gain on sale of plant assets 4.000 Total revenue and gains $245.000 Cost of goods sold 110,000 Salary expense 45.000 Depreciation expense 12,000 Other operating expense 23,00 Interest expense Income tax expense Total expenses Net income (loss) Other information provided Current acts other than cash increase by 124,000 Current liabilities doc h How much is the Net cash flow provide superato (A) 5 positive (1) 75,000 sive (OST 100 ise D Interest Expense n o n sem 2 2018-2019.pdf File sdf C/Users/Kerense/Downloads/sem%202%202018-2019.pdf Which of the following costs and to a company track would NOT be exposed? (A) The oat to change car's oil (B) The cost to install an engine with higher horsepower (C) The con lo replace a broken windshield (D) The cost of new tires mari) Which of the following depreciation methods writes off more depreciation near the start of an t's inter years? (A) Devable declining halnice (B) Units of production ACCIDOZ ( First , Furt-Out (D) Straight Line (2 marks) GAAP prefers companies to use which of the following methods to account for bad debts? (A) Direct write-off (B) AlloC (C) 360 day (D) Amortization (2 marks) The Allowance for uncollectible accounts currently has a debit balance of 51.000. The company's management estimates that 2.0% of net credit sales will be uncollectible. Net credit sales are $260,000. What will be balance of the Allowance for uncollectible accounts reported on the balance sheet? (A) 55200 (B) 16200 (C) S1000 (Di 54,200 Which of the following charactics of a corporation limits a stockholders loss to the amount of his or he investment of the corporation IA Transorability of ma p Bi Libilis Cele la cality D) Seat ORIAL G c o n tamination ou sem 2 2018-2019.pdf Kerease/Downloads/sem%202%202018-2019.pdf W E ES S0.000W will be the balance of the Allowance for uncollechble accounts reported on the balance sheet? (A) $5,200 (B) 56,200 (C) $1,000 (D) $4,200 (2 marks) Which of the following characteristics of corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? (A) Transferability of ownership (B) Limited liability (C) Separate legal entity (D) Separation of ownership and management (2 marks) The following information is from the balance sheet of Judo Corporation as of December 31, 2014 Preferred stock, S100 par S 600,000 Paid-in capital in excess of par preferred 50,000 Common stock, Si par 300,000 Paid-in capital in excess of par-common 520,000 Retained earnings 320,000 Total stockholders' equity $1.790.000 What was the total paid-in capital as of December 31, 2014? (A) $1,790,000 (B) $200,000 (C) 5320,000 (D) $1.470.000 (2 marks) Haney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $10 per share. Which of the following is the correct journal entry to record this transaction? (A) Credit Cash S600.000, debit Common stock 520,000. aad debit Paid-in capital 5580.000 (B) debit Cash $60,000 und credit l' a n capital (C) debit Cash 3600,000. credit Common stock $20,000, and credit Paid.in capital 580.00 D) debit Cash S600,000 and credit Common stock 5610.000 2 marks SECTION Pare 2 SECTION A A statement of ash flows is generated to show which of the following? (A) The revenues the company has earned (B) The expenses the company incurred during the time period. (C) The inflow and outflow of cash during the time period. (D) How profits were generated. (2 mark) Which of the following describes the financing activities as shown in the statement of cash flows? (A) Includes increases and decreases in long-term assets (B) Includes transactions affecting the capitalization of the business (C) Includes transactions that primarily impact current assets and current liabilities (D) Shows the beginning and ending balance of cash (2 marka) Batra Company uses the indirect method to prepare the statement of cash flows. Please refer to the following income statement Sales revenue $240,000 Interest revenue 1,000 Gain on sale of plant assets 4.000 Total revenue and gains $245.000 Cost of goods sold 110,000 Salary expense 45.000 Depreciation expense 12,000 Other operating expense 23,00 Interest expense Income tax expense Total expenses Net income (loss) Other information provided Current acts other than cash increase by 124,000 Current liabilities doc h How much is the Net cash flow provide superato (A) 5 positive (1) 75,000 sive (OST 100 ise D Interest Expense n o n sem 2 2018-2019.pdf File sdf C/Users/Kerense/Downloads/sem%202%202018-2019.pdf Which of the following costs and to a company track would NOT be exposed? (A) The oat to change car's oil (B) The cost to install an engine with higher horsepower (C) The con lo replace a broken windshield (D) The cost of new tires mari) Which of the following depreciation methods writes off more depreciation near the start of an t's inter years? (A) Devable declining halnice (B) Units of production ACCIDOZ ( First , Furt-Out (D) Straight Line (2 marks) GAAP prefers companies to use which of the following methods to account for bad debts? (A) Direct write-off (B) AlloC (C) 360 day (D) Amortization (2 marks) The Allowance for uncollectible accounts currently has a debit balance of 51.000. The company's management estimates that 2.0% of net credit sales will be uncollectible. Net credit sales are $260,000. What will be balance of the Allowance for uncollectible accounts reported on the balance sheet? (A) 55200 (B) 16200 (C) S1000 (Di 54,200 Which of the following charactics of a corporation limits a stockholders loss to the amount of his or he investment of the corporation IA Transorability of ma p Bi Libilis Cele la cality D) Seat ORIAL G c o n tamination ou sem 2 2018-2019.pdf Kerease/Downloads/sem%202%202018-2019.pdf W E ES S0.000W will be the balance of the Allowance for uncollechble accounts reported on the balance sheet? (A) $5,200 (B) 56,200 (C) $1,000 (D) $4,200 (2 marks) Which of the following characteristics of corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? (A) Transferability of ownership (B) Limited liability (C) Separate legal entity (D) Separation of ownership and management (2 marks) The following information is from the balance sheet of Judo Corporation as of December 31, 2014 Preferred stock, S100 par S 600,000 Paid-in capital in excess of par preferred 50,000 Common stock, Si par 300,000 Paid-in capital in excess of par-common 520,000 Retained earnings 320,000 Total stockholders' equity $1.790.000 What was the total paid-in capital as of December 31, 2014? (A) $1,790,000 (B) $200,000 (C) 5320,000 (D) $1.470.000 (2 marks) Haney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $10 per share. Which of the following is the correct journal entry to record this transaction? (A) Credit Cash S600.000, debit Common stock 520,000. aad debit Paid-in capital 5580.000 (B) debit Cash $60,000 und credit l' a n capital (C) debit Cash 3600,000. credit Common stock $20,000, and credit Paid.in capital 580.00 D) debit Cash S600,000 and credit Common stock 5610.000 2 marks