QUESTION 36

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

		The financing section
		The operating section
		The investing section
		The noncash investing and financing section

3 points

QUESTION 37

Which of the following is TRUE of a discount on bonds payable?

		A discount on bonds payable is added to the bonds payable balance and shown with long-term liabilities on the balance sheet.
		A discount on bonds payable is subtracted from the bonds payable balance and shown with the current liabilities on the balance sheet.
		A discount on bonds payable is added to the bonds payable balance and shown with stockholders' equity on the balance sheet.
		A discount on bonds payable is subtracted from the bonds payable balance and shown with long-term liabilities on the balance sheet.

3 points

QUESTION 38

The Sonesta Company uses the indirect method for the statement of cash flows. In 2013, they sold equipment for $4,800 cash. The net book value of the asset prior to sale was $4,000. Which of the following statements is true?

		The gain on sale of $800 would be added back to net income in the operating activities section.
		The book value of the assets sold would be shown as a negative cash flow in the investing activities section.
		The cash receipt of $4,800 would be shown as a positive cash flow in the investing activities section.
		The gain on sale of $800 would be shown as a positive cash flow in the financing activities section.

3 points

QUESTION 39

Which of the following is a characteristic of a current liability?

		A current liability is a liability that is due within 30 days.
		A current liability is a liability that is due within one year or one operating cycle, whichever is longer.
		A current liability is a liability that is due within 10 days.
		A current liability is a liability that is due in longer than a one-year period, or one operating cycle.

3 points

QUESTION 40

Which of the following statements is TRUE?

		The purchase of treasury stock decreases assets and decreases stockholders' equity.
		The purchase of treasury stock increases assets and increases stockholders' equity.
		The purchase of treasury stock increases assets and decreases stockholders' equity