Question
Question 1 (1 point) If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is not a proper adjustment
Question 1 (1 point)
If a company prepares an Indirect Method Statement of Cash Flows, which of the following items is not a proper adjustment to net income to arrive at cash flow from operating activities:
Question 1 options:
Subtracting Stock Compensation Expense | |
Adding a decrease in Accounts Receivable | |
Adding Bad Debt Expense | |
Subtracting Gains from Sales of Investments |
Question 2 (1 point)
Cash outflows related to dividend payments will appear in the ___________ section on the Statement of Cash Flows.
Question 2 options:
Financing | |
Investing | |
Operating |
Question 3 (1 point)
If a company reports a 5% profit margin percentage, this means that the company is earning 5 cents of profit per dollar of sales.
Question 3 options:
True | |
False |
Question 4 (1 point)
Most U.S. companies provide a Direct Method Statement of Cash Flows.
Question 4 options:
True | |
False |
Question 5 (1 point)
It is possible for a company's Quick Ratio to be higher than its Current Ratio.
Question 5 options:
True | |
False |
Question 6 (1 point)
If Company A has a PE ratio of 20 and Company B has a PE ratio of 80, investors expect Company A to grow more in the future than Company B.
Question 6 options:
True | |
False |
Question 7 (1 point)
Holden Company reports Interest Expense of $325,000 on its 2020 Income Statement. Holden's Balance Sheet shows Interest Payable of $30,000 as of 12/31/20 and $50,000 as of 12/31/19. How much Cash did Holden pay for interest in 2020?
Question 7 options:
$345,000 | |
$405,000 | |
$305,000 | |
$325,000 |
Question 8 (1 point)
Cash inflows from sales of investments will appear in the ___________ section on the Statement of Cash Flows.
Question 8 options:
Investing | |
Operating | |
Financing |
Question 9 (1 point)
Holden Company reports Interest Expense of $325,000 on its 2020 Income Statement. Holden's Balance Sheet does not show balances for Interest Payable or Prepaid Interest. How much Cash did Holden pay for interest in 2020?
Question 9 options:
$350,000 | |
$325,000 | |
$0 | |
$300,000 |
Question 10 (1 point)
Harbinger Corporation reports the following balances:
|
| As of 12/31/20 |
| As of 12/31/19 |
Accounts Receivable (Gross) |
| 70,000 |
| 80,000 |
Inventory |
| 140,000 |
| 160,000 |
Accounts Payable |
| 135,000 |
| 165,000 |
Unearned Revenue |
| 55,000 |
| 45,000 |
|
|
|
|
|
|
| Year ended 12/31/20 |
| Year ended 12/31/19 |
Sales |
| 500,000 |
| 470,000 |
Cost of Goods Sold |
| 230,000 |
| 220,000 |
How much Cash did Harbinger collect from customers in 2020?
Question 10 options:
$520,000 | |
$500,000 | |
$480,000 | |
$510,000 |
Question 11 (1 point)
Cash outflows related to employee wages be reflected as part of __________ on the Statement of Cash Flows.
Question 11 options:
Net cash provided by/(used in) INVESTING activities | |
Net cash provided by/(used in) FINANCING activities | |
Net cash provided by/(used in) OPERATING activities |
Question 12 (1 point)
Harbinger Corporation reports the following balances:
|
| As of 12/31/20 |
| As of 12/31/19 |
Accounts Receivable (Gross) |
| 70,000 |
| 80,000 |
Inventory |
| 140,000 |
| 160,000 |
Accounts Payable |
| 135,000 |
| 165,000 |
Unearned Revenue |
| 55,000 |
| 45,000 |
|
|
|
|
|
|
| Year ended 12/31/20 |
| Year ended 12/31/19 |
Sales |
| 500,000 |
| 470,000 |
Cost of Goods Sold |
| 230,000 |
| 220,000 |
How much Cash did Harbinger pay for inventory in 2020?
Question 12 options:
$250,000 | |
$230,000 | |
$220,000 | |
$240,000 |
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