Question 1

1. Which of the following income statement accounts most likely has no real cash effect?

   		Income Tax Expense
   		Rent Revenue
   		Pension Expense
   		Gain on Factoring

Question 2

1. The shortcut for determining how to convert from accrual to cash when creating a statement of cash flows is similar to which other shortcut we used this semester?

   		The shortcut for determining the conversion from GAAP to tax line items.
   		The shortcut for determining the conversion from Contract Liability to Sales Revenue.
   		The shortcut for determining the conversion of corridor smoothing to pension expense.
   		The shortcut for determining the conversion from LIFO to FIFO Retail Inventory Method.

Question 3

1. Net cash flow from operating activities for Year 4 for Spencer Corporation was $400,000. On the financial statements for Year 4, Spencer reported cash dividends paid on common stock was $20,000; depreciation and amortization was $12,000; and the increase in Accounts Receivable was $24,000. Based on this information, what was Spencer's net income for Year 4?

   		356,000
   		412,000
   		396,000
   		364,000