OMIT * VS.) Davis Company uses the direct method to prepare its statement of cash flows. Refer to the following information reported for the year 2014: Operating expenses, $25,000 Accrued Liabilities, beginning balance, $3,000 Accrued Liabilities, ending balance, $5,000 What amount was paid to suppliers for operating expenses on a cash basis? A) $31,000 B) $24,000 $28,000 D) $29,000 ate categorized as either current'assets or long-term assets on the balance sheet depending on the maturity date. AV Trading investments B) Matured investments Held-to-maturity investments D) Equity investments 16) Green Services invests its excess cash in Creative Technologies and acquires 1,000 shares for $53.25. Green Services owns less than 1% of Creative's voting stock and plans to hold the stock for two years. While preparing the journal entry to record this transaction: A) Long-term Investments-Trading Investments will be credited for $53,250. B) Long-term Investments-. E QUITY will be debited for $53,250. Long-term Investments-Held-to-Maturity will be debited for $53,250. D) Long-term Investments - Significant Interest Investments will be debited for $53,250. Rick Co. purchase 7,000 shares of its own $2 par value common stock for $160 per share. Which of the following is the correct journal entry to record this transaction? A) Debit Cash $2,240,000 and credit Treasury Stock-Common $2,240,000. UNIT B) Debit Common Stock - 2 Par Value $2,200,000 and credit Cash $2,249,000. Debit Cash $2,240,000, and credit Paid-In Capital in Excess of Par-Common $2,240,000. OMT D) Debit Treasury Stock-Common $1,120,000 and credit Cash $1,120,000. Mi The balance in the Bonds Payable Account is a credit of $68,000. The balance in the Premium on Bonds Payable Account is a credit of $900. How much is the bond carrying amount? 4 $900 B) $68,900 $67,100 D) $68,000 17 Maurice Corporation invested $100,000 to acquire 20,000 shares of Delta Technologies on March 1, 2015. On July 2, 2015, Delta pays a cash dividend of $0.25 per share. The investment is classified as anEQurty investment. Which of the following is the correct journal entry to record the transaction on July 2, 2015? A) Cash 5,000 Long-term Investments-Available-for-Sale 5,000 5,000 Long-term Investments-Trading Investments Tom B) Cash 5,000 5.000 C) Cash Long-term Investments - Held-to-Maturity 5,000 5,000 D) Cash Dividend Revenue 5,000 OMI * 18). e-Bay Inc. has net sales on account of $1,200,000. The average niet accounts receivable are $600,000. Calculate the days' sales in receivables. A) 182.5 days B) 8.7 days C) 304.0 days D) 439.8 days 19). Which of the following types of financial statement analysis would be used to see how sales revenue of a company has changed from one year to the next? A) vertical analysis of balance sheet B) horizontal analysis of balance sheet C) vertical analysis of income statement horizontal analysis of income statement The interest rate on which cash payments to bondholders are based is the A) discount rate B) amortization rate. C) stated rate. D) market rate. MTT Outstanding stock refers to the: A) shares of stock that are held by the stockholders. B) total amount of stock that has not been sold yet. C) total amount of stock that has been authorized by state law D) shares of stock that have been sold for the highest price. 20 Which of the following types of financial statement analysis would be used to see how a company's operating expenses as a percentage of net sales have changed from one year to the next? A) analysis of internal control system B) horizontal analysis C) ratio analysis D) vertical analysis 2.1) whic Which of the following best describes trend analysis? A) expressing each year's figures as a percentage of the base year figures B) calculating key ratios to evaluate performance C) comparing a company's financial statements with that of other companies D) expressing each figure as a percentage of a budgeted figure * 22) Avatar Company uses the direct method to prepare its statement of cash flows. Refer to the 1) Sales Revenue, $515,000 2) Accounts Receivable, beginning balance, $92,000 3) Accounts Receivable, ending balance, $57,000 In the operating activities section of the statement of cash flows, what amount will be shown for collections from customers? A) $366,000 B) $149,000 $458,000 D) $550,000 -23) The _section of the statement of cash flows includes increase and decrease in long-term assets. A) non-cash operating activities B) financing activities C) operating activities D) investing activities * 24) Partridge Inc. provides the following information for the year 2014: Net income $31,200 Market price per share of common stock $12.00/share Dividends paid $0.80/share Common stock outstanding at Jan 1, 2015 110,000 shares Common stock outstanding at Dec 31, 2016 150,000 shares The company has no preferred stock outstanding. Calculate the dividend yield for common stock. A) 3.67% B) 1.67% C) 4.67% D) 6.67% 25). Which of the following statements is true of the direct and indirect methods of preparing the statement of cash flows? A) The direct method begins with Net Income and adjusts to calculate operating and investing cash flows. B) The indirect method shows three types of cash flows, but the direct method does not. C) The operating activities section of both the direct and the indirect methods are the same. D) The indirect method and the direct method will produce the same amount of net cash flow from operating activities. The purchase of equipment financed by a Long-Term Notes Payable is an example of: A) investing activity. B) financing activity. C) operating activity. D) non-cash investing and financing activity. 27) Which of the following would be included in the entry to record the issuance of 5,000 shares of $10 par value common stock at $13 per share cash? A) Cash would be debited for $65,000. B) Common Stock would be debited for $50,000. C) Paid-In Capital in Excess of Par-Common would be debited for $15,000. D) Common Stock would be credited for $65,000. MIT 28) Which of the following is the base amount when performing vertical analysis of an income statement? A) gross profit B) net sales C) sales revenue D) total expenses On January 1, 2015, Bratios Company purchases equipment and signs a 6-year mortgage note for $80,000 at 15%. The note will be paid in equal annual installments of $21/139, beginning January 1, 2016. Calculate the balance of the Mortgage Payable account after the payment of the first installment. A) $60,351 B) $58,861 C) $12,000 'D) $70,861 24 Which of the following occurs when a 2-for-1 stock split is declared? A) The balance in paid-in capital doubles. B) The balance in common stock remains the same. C) The balance in common stock is reduced to half the original amount. D) The balance in common stock doubles. s When a bond is sold at a price higher than the face value, the difference is known as a; A) discount B) maturity value. C) face value. D) premium. 30)Which of the following is true of the accounting entries for debt securities? A) The receipt of interest revenue is recorded with a debit to Cash and a credit to Long-term Securities-Held-to-Maturity. B) The receipt of interest revenue is recorded with a debit to Interest Revenue and a credit to Cash. C) Investments in debt securities are recorded at cost, including any brokerage fees paid. D) Debt securities disposed of at maturity are recorded with a debit to the Short-term or Long-term Investments account and a credit to Cash. MIT omit