1. On a companys cash flow statement, the amount it receives when it borrows money would be considered which type of cash flow?

   		Operating
   		Investing
   		Financing
   		Capital

2.85714 points

Question 28

1. Under Generally Accepted Accounting Principles, which of the following assets is typically accounted for at fair value?

   		Inventory
   		Marketable Securities
   		Patents
   		Land

2.85714 points

Question 29

1. The Abex Corp. spent $10,000 on a one-year insurance policy, on April 1st of Year 1. How much insurance expense should be recognized by Abex in its December 31, Year 1 income statement?

   		None
   		$2,500
   		$7,500
   		$10,000

2.85714 points

Question 30

1. When the prices that a company must pay its vendors are rising, the method of accounting for inventory that normally results in the lowest ending inventory is

   		LIFO
   		FIFO
   		Average Cost
   		There is no difference among the three methods.