QUESTION 1 A Statement of Cash Flows is generated to show a How profits were generated during the period b The revenues the company has earned during the period c The inflow and outflow of cash during the period d The expenses the company incurred during the period 1 points QUESTION 2 Smithson Corp had the following selected balance sheet changes for the past year Assets Increase (Decrease) Cash $47,000 Accounts Receivable $10,000 Inventory $15,000 Prepaid Expenses ($7,000) Accumulated Depreciation $11,000 Liabilities Increase (Decrease) Accounts Payable $20,000 Wages Payable ($12,000) Taxes Payable $9,000 The company's net income during the year was $35,000 What is the net cash provided by operating activities during the year on the statement of cash flows using the indirect method a $25,000 b $45,000 c $92,000 d $10,000 4 points QUESTION 3 The beginning and ending balances of long term debt are $64,000, and $35,200, respectively, and cash payments for long term debt during the year were $34,100 How much new long term debt was issued during the year a New long term debt issued during the year was $62,000 b New long term debt issued during the year was $28,800 c New long term debt issued during the year was $5,300 d New long term debt issued during the year was $1,100 2 points QUESTION 4 A company sold equipment with a book value of $10,000 at a gain of $2,500 How much can be reported in the investing activities section of the statement of cash flows as cash received from sale of equipment a The cash received from sale of equipment is $2,500 b The cash received from sale of equipment is $10,000 c The cash received from sale of equipment is $7,500 d The cash received from sale of equipment is $12,500 1 points QUESTION 5 Page sells books Based on the information below calculate cost of goods available for sale Purchases $105,000 Operating expenses 53,000 Beginning merchandise inventory 14,000 Ending merchandise inventory 11,000 Sales revenue 170,000 a $108,000 b $116,000 c $105,000 d $119,000 2 points QUESTION 6 Using the following information calculate the cost of goods sold Utilities for the store 9,500 Sales commissions 10,000 Sales revenue 164,000 Purchases of merchandise 85,000 January 1 inventory 27,000 Rent of store 13,500 December 31 inventory 23,000 a $112,000 b $85,000 c $89,000 d $108,000 3 points QUESTION 7 Based on the information below what is the cost of direct materials used Beginning of year End of year Raw materials inventory 200 180 Work in Process inventory 320 410 Finished goods inventory 250 200 Sales revenue $4,000 Purchases of direct materials $400 Direct labor $450 Manufacturing overhead $620 Operating expenses $650 a $600 b $400 c $380 d $420 3 points QUESTION 8 Based on the information below what is the cost of good manufactured and completed Beginning of year End of year Raw materials inventory 200 180 Work in Process inventory 320 410 Finished goods inventory 250 200 Sales revenue $4,000 Purchases of direct materials $400 Direct labor $450 Manufacturing overhead $620 Operating expenses $650 a $1,580 b $1,490 c $1,400 d $1,380 4 points QUESTION 9 OVERallocated manufacturing overhead results when a Production is less than last year b Actual overhead is less than expected c Actual overhead is less than allocated overhead d Estimated overhead is less than actual overhead 1 points QUESTION 10 Before the year began, ABC manufacturing estimated that manufacturing overhead for the year would be $200,000 and that 25,000 direct labor hours would be worked Actual results for the year included the following Actual manufacturing costs $182,000 Actual direct labor hours 20,000 If the company allocated manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been a $18,000 Underallocated b $22,000 Underallocated c $18,000 Overallocated d $22,000 Overallocated

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QUESTION 1 A Statement of Cash Flows is generated to show: a. How profits were generated during the period. b. The revenues the company has

QUESTION 1

A Statement of Cash Flows is generated to show:

	a.	How profits were generated during the period.
	b.	The revenues the company has earned during the period.
	c.	The inflow and outflow of cash during the period.
	d.	The expenses the company incurred during the period.

1 points

QUESTION 2

Smithson Corp. had the following selected balance sheet changes for the past year:

Assets Increase (Decrease)

Cash $47,000

Accounts Receivable $10,000

Inventory $15,000

Prepaid Expenses ($7,000)

Accumulated Depreciation $11,000

Liabilities Increase (Decrease)

Accounts Payable $20,000

Wages Payable ($12,000)

Taxes Payable $9,000

The company's net income during the year was $35,000. What is the net cash provided by operating activities during the year on the statement of cash flows using the indirect method?

a.
$25,000

b.
$45,000

c.
$92,000

d.
$10,000

4 points

QUESTION 3

The beginning and ending balances of long-term debt are $64,000, and $35,200, respectively, and cash payments for long-term debt during the year were $34,100. How much new long-term debt was issued during the year?

	a.	New long-term debt issued during the year was $62,000
	b.	New long-term debt issued during the year was $28,800
	c.	New long-term debt issued during the year was $5,300
	d.	New long-term debt issued during the year was $1,100

2 points

QUESTION 4

A company sold equipment with a book value of $10,000 at a gain of $2,500. How much can be reported in the investing activities section of the statement of cash flows as cash received from sale of equipment?

	a.	The cash received from sale of equipment is $2,500
	b.	The cash received from sale of equipment is $10,000
	c.	The cash received from sale of equipment is $7,500
	d.	The cash received from sale of equipment is $12,500

1 points

QUESTION 5

Page sells books. Based on the information below calculate cost of goods available for sale:

Purchases $105,000

Operating expenses 53,000

Beginning merchandise inventory 14,000

Ending merchandise inventory 11,000

Sales revenue 170,000

a.
$108,000

b.
$116,000

c.
$105,000

d.
$119,000

2 points

QUESTION 6

Using the following information calculate the cost of goods sold:

Utilities for the store 9,500

Sales commissions 10,000

Sales revenue 164,000

Purchases of merchandise 85,000

January 1 inventory 27,000

Rent of store 13,500

December 31 inventory 23,000

a.
$112,000

b.
$85,000

c.
$89,000

d.
$108,000

3 points

QUESTION 7

Based on the information below what is the cost of direct materials used:

Beginning of year End of year

Raw materials inventory 200 180

Work in Process inventory 320 410

Finished goods inventory 250 200

Sales revenue $4,000

Purchases of direct materials $400

Direct labor $450

Manufacturing overhead $620

Operating expenses $650

a.
$600

b.
$400

c.
$380

d.
$420

3 points

QUESTION 8

Based on the information below what is the cost of good manufactured and completed:

Beginning of year End of year

Raw materials inventory 200 180

Work in Process inventory 320 410

Finished goods inventory 250 200

Sales revenue $4,000

Purchases of direct materials $400

Direct labor $450

Manufacturing overhead $620

Operating expenses $650

a.
$1,580

b.
$1,490

c.
$1,400

d.
$1,380

4 points

QUESTION 9

OVERallocated manufacturing overhead results when:

	a.	Production is less than last year.
	b.	Actual overhead is less than expected.
	c.	Actual overhead is less than allocated overhead.
	d.	Estimated overhead is less than actual overhead.

1 points

QUESTION 10

Before the year began, ABC manufacturing estimated that manufacturing overhead for the year would be $200,000 and that 25,000 direct labor hours would be worked.

Actual results for the year included the following:

Actual manufacturing costs $182,000

Actual direct labor hours 20,000

If the company allocated manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been _________

a.
$18,000 Underallocated

b.
$22,000 Underallocated

c.
$18,000 Overallocated

d.
$22,000 Overallocated