The questions are attached. Can you please answer these questions?

Comprehensive Review 1. Harmonious Foods' statement of cash flows showed the following totals: Cash for operating activities ($65000) Cash from financing activities 41000 Cash from investing activities 32000 Which statement most likely explains what occurred during the year? 2. 3. A. Harmonious Foods is using cash from operations and borrowing money from the bank to buy longterm assets B. Harmonious Foods is using its profits in order to sell plant assets and repay debt C. Harmonious Foods is using money from the sale of long-term assets to fund its operations and to repay debt. D. Harmonious Foods is selling long-term assets and borrowing money to fund operations Which one of the following is a current liability? A. Gift cards redeemed by customers B. Sales taxes paid on new equipment acquired C. Estimated cost of hurricanes which might develop in the Caribbean during next hurricane season D. Football tickets sold to customers for games in the coming season. Which one of the following items would be considered a cash equivalent if it was held at the balance sheet date? A. 120-day certificate of deposit B. A certificated of deposit with a 6-month maturity that was purchased at its issue date C. Common stock of a company traded on the New York Stock Exchange that was purchased 30 days before the balance sheet date D. None of the above 4. On the morning of June 27, 2011, you purchased a hoodie (which was originally priced at $120) on sale for $50 cash. In the afternoon, you accepted an offer of $80 for it, which you will receive on July 1, 2011. You are certain that you will receive the money. For the day of June 27, 2011, your net income and cash flow, respectively, were: A. $30 and $30 B. $70 and $30 C. $0 and ($50) D. $30 and ($50) E. Some other answer 5. Why might a decrease in the accounts receivable account be added to net income to arrive at operating cash flows? A. Cash collections from customers were greater than the sales generated. B. Cash collections increased due to an increase in sales. C. Cash collections decreased due to a decline in sales. D. Cash collections from customers were less than the sales reported E. Decreases in accounts receivable are never added. They are subtracted from net income. 6. Under the indirect method, an increase in the inventory account will be deducted from net income to calculate operating cash flow because: A. Cash payments to suppliers were less than the purchases made during the period. B. Inventory does not involve cash payments. C. Cash payments to suppliers were larger than the purchases made during the period D. Customers purchased more goods than expected. E. Increases in inventories are never deducted. They are added to net income. 7. One purpose of using the allowance method instead of the direct write-off method is that A. It helps reflect a more accurate historical cost of the company's assets on the balance sheet. B. The cost of bad debt expense is matched against the revenue in the period the revenue is earned. C. It eliminates sales to customers that may not pay amounts charged on account. D. It encourages customers to pay amounts due a timely basis. 8. After closing is complete, which of the following will be true? A. All permanent accounts have a zero balance B. The net income or net loss and the dividends for the period have been transferred to the Retained Earnings account. C. Retained earnings will start with a zero balance after closing. D. All of the above will be true. 9. When inventory is sold under a perpetual inventory system, which of the following should be recorded? A. A debit to Accounts Receivable and a credit to Sales at the selling price of the inventory followed by a debit to Cost of Goods sold and a credit to inventory at the cost of the inventory sold. B. A debit to Accounts Receivable and a credit to Sales at the cost of the Inventory followed by a debit to Cost of Goods Sold and a credit to Inventory at the selling price of the inventory sold C. A debit to Accounts Receivable and a credit to Sales at the cost of inventory followed by a debit to Cost of Goods Sold and a credit to Inventory at the cost of the inventory sold. D. A debit to Accounts Receivable and a credit to Sales at the selling price of the inventory followed by a debit to Cost of Goods Sold and a credit to inventory at the selling price of the inventory sold. 10. What is true about the operating activities section of the statement of cash flows prepared using the direct method? A. It is the same presentation as the indirect method of cash flows from operating activities B. It shows cash receipts and cash expenditures to compute net cash inflows or outflows from operating activities. C. It usually shows a larger amount for cash flows from operations than the indirect method. D. It begins with net income and removes all noncash amounts 11. Which of the following is necessary to sustain a company? A. Having positive cash flows from operations B. Having positive cash flows from financing activities C. Having positive cash flows from investing activities D. Having positive operating, investing, and financing activities. 12. Link Company reported retained earnings totaling $220,000 at December 31, 2008. Which statement is true? A. The company recognized net income totaling at least $220,000 since it began operations B. The company received $220,000 more cash than it paid out since it began operations C. The company earned profit of $220,000 during the year D. The company's total equity is $220,000 at the end of the year. 13. Which one of the following is an important reason to evaluate a company's cash flow? A. Without positive cash flows, a company earns no profit B. Minimum cash balances must be maintained by all companies C. Stockholders want to know that the company can generate cash consistent with earning a reasonable return on their investments. D. Creditors want to be sure that the company has significant cash inflows from financing activities. 14. Which one of the following statements is true? A. A balance sheet reports the total cash collected over an entire accounting period B. An income statement reports the amounts of revenue earned and cash paid for expenses over a period of time C. A retained earnings statement reports cash received from business operations and the amount of cash paid for dividends. D. A statement of cash flows explains the changes in cash and cash equivalents during a period. 15. Durand, Inc. sales are all on account. It provides the following information from its 2008 yearend balance sheet: Accounts receivable, net of allowance of $9000............................................$336,000 Credit sales during the year totaled $24,680,000 and bad debt expense totaled $9,600. How much do customers owe Durand at the end of 2008? A. B. C. D. 16. 335,000 345,000 325,400 327,000 How is the statement of retained earnings linked to the other financial statements? A. The amount of retained earnings reported on the balance sheet is equal to net income B. Retained earnings is added to total assets and reported on the balance sheet. C. The total on the statement of retained earnings equals the amount of retained earnings on the balance sheet. D. There is no link between the retained earnings statement and the other statements, as each contains different accounts and provides different information. 17. Maya Corp. sold merchandise to a customer on credit. The invoice amount was $3000, the invoice date was October 15, and the credit terms were 2/10, n/30. Which of the following statements is true? A. The customer can take a $300 discount if the invoice is paid by October 25. B. The customer should pay $2940 if the invoice is paid by October 25. C. The customer must pay 2% interest if payment is made after ten days D. The customer is entitled to a discount of 10%. 18. Which of the following affects describes the purchase of $3000 of equipment financed by the issuance of a long term note payable? A. Assets and owners' equity increase by $3000 B. Assets and owners' equity decrease y $3000 C. Assets and liabilities decrease by $3000 D. Assets and liabilities increase by $3000 E. Assets decrease and liabilities increase by $3000 Use the information for TRT, Inc. for questions 21 to 25 Below is an income statement for TRT Inc., for the year ended December 31, 2012, and the company's balance sheet accounts as of December 31, 2011, and 2012. The prepaid expenses and accrued liabilities included in TRT's balance sheets involve selling or general (operating) expenses. All of TRT's sales and inventories purchases are made on account. Balance Sheet accounts Cash 17000 77200 excess of par earnings 2012 2011 $20200 $13300 Accounts receivable 14000 12000 Inventory 14500 Prepaid expenses 770 1430 Land 6000 0 Equipment 57200 Accumulated depreciation 24200 17900 Accounts payable 2000 5200 Accrued liabilities 2770 2400 Common stock 15000 9930 Paid-in capital in 12700 7000 Retained 70000 64500 Income Statement for the Year Ended December 31, 2012 Sales 58000 95000 Cost of goods sold Gross profit Operating expenses: Selling & general expenses 14700 Depreciation expense 21000 Operating income 37000 Loss on sale of land 2500 Income before income tax 34500 Income tax expense 13440 Net income 21060 21. How much cash was spent on new equipment during 2012? A. 0 B. $20000 C. $26300 D. $77200 E. Some other amount 22. How much is the net increase or decrease in cash and cash equivalents during 2012? A. $20200 B. $26900 C. $21060 D. $33500 E. Some other amount. 23. How much cash was received from the issuance of stock during 2012? 37000 6300 A. $5070 B. $15000 C. $27700 D. $10770 E. Some other amount 24. How much cash was paid to suppliers for inventory during 2012? A. $37700 B. $34500 C. $39500 D. $36300 E. Some other amount 25. How much cash was received from customers during 2012? A. $93000 B. $95000 C. $97000 D. $26900 E. Some other account. 26. Which of the following changes describes the payment of $2000 of dividends that had been previously declared? A. Assets and net income decrease by $2000 B. Assets decrease and net income increase by $2000 C. Assets and owners' equity decrease by $2000 D. Assets and liabilities decrease by $2000 27. The following appears in the stockholders' equity section of Lynx Corporation's balance sheet at the beginning of 2008: Preferred Stock, 10% cumulative shares, $5 par value, 20000 shares issued $100000 Paid in capital in excess of par - preferred 50000 Common Stock, authorized 10 million shares, $1 par value, issued 500000 shares 500000 Paid-in-capital in excess of par-common 300000 Retained earnings 250000 Total stockholders' equity $1200000 Lynx Corporation had paid no dividends for the last two years due to a temporary downturn in business. For 2008, the company has net earnings of $700000 and the company's board of directors intends to pay $400000 as total dividends. How much was the average issue price of each share of preferred stock when it was originally sold? A. $12.50 per share B. $53.50 per share C. $5.00 per share D. $7.50 per share E. Some other amount 28. What effect will failure to record an adjusted entry at the end of May for May's utility bill received in the mail if the payment will not be paid until the subsequent month? A. a liability and owners' equity will be understated B. an asset will be overstated and an expense will be understated C. an asset will be overstated and a liability to will be understated D. a liability and an expense will be understated 29. A good system of internal control A. Urges adherence to prescribed managerial policies B. Insures profitable operations C. Eliminates the need for an audit D. Prevents fraud E. Is not necessary if the company bonds it employees. 30. Why is depreciation expense recorded? A. So that a company can better estimate the market value of the depreciated assets B. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets C. So that cash will be available at the end of the asset's useful life in order to replace it D. So that expenses are matched against revenues sing a reasonable allocation method. 31. Kramer Company paid its insurance premiums for a tw0-year insurance policy on May 1, 2012, and recorded them in a prepaid insurance account. The adjusting entry required at May 31, 2012, to recognize the one month portion for the month of May will A. increase an expense and a liability account B. Increase an expense account and decrease an asset account C. Increase in asset account and decrease an expense account D. Increase a revenue account and decrease an asset account. 32. Which one of the following represents an economic effect of issuing a 2 for 1 stock split? A. No effect on par value per share or retained earnings B. Decrease par value per share, and no effect on retained earnings C. No effect on par value per share, and decrease retained earnings D. Increase par value per share and retained earnings 33. If a corporation issues debt instead of common stock to finance the purchase of property, then the corporation has A. a disadvantage of higher tax payments because dividends are a bigger expense than interest B. no ability to avoid interest payments from the debt issuance under any circumstances C. required dividend payments that are usually double taxed D. a higher earnings per share. 34. If preferred stock is cumulative, then A. preferred dividends are a percentage of corporate profits B. dividends in arrears must be paid before common shareholders receive dividends C. dividends are a percentage of the market value of the preferred stock. D. payment of dividends is legally guaranteed to shareholders each year. 35. Danker Corp is a merchandising company that uses a perpetual inventory system. Pertinent account balances are listed below: Sales $250000 Operating expenses $34000 Cost of goods sold 163000 Income tax expense 16000 Accumulated depreciation 18900 Sales returns and allowances 1000 Inventory, ending 15000 Dividends declared and paid 6000 How much is net income for Danker Corporation? A. $37000 B. $30000 C. $51000 D. $36000 E. Some other amount 36. Vasper Corp. began the month of April with a cash balance of $21000. During April the company reported net income of $15000. The following merchandise sales and purchases and cash receipts and cash payments occurred during April: Purchased merchandise at a cost of $48000 on credit Sold merchandise with a cost of $38000 on credit for $60000 Made payments to creditors for merchandise purchases of $56000 Collected $50000 from credit customers What is the balance of the cash account at April 30? A. $4000 B. $12000 C. $14000 D. $24000 E. Some other answer 37. Repeat & Co. reported net income totaling $85000 for 2008. Which one of the following business transactions would cause cash from operating activities to be higher than the amount of net income reported by Repeat for 2008? A. Cash dividends were paid to stockholders during the year. B. A bank loan was repaid during the year C. Depreciation expense was recorded for the year. Dr. Equipment was purchased for cash during the year. 38. There are some liabilities, such as Income Taxes Payable, for which the amounts must be estimated. Which statement is true if the company fails to recognize the taxes? A. Liabilities are overstated B. Expenses are overstated C. Net income is overstated D. Assets are overstated 39. Which one of the following is a valid reason for a stock split? A. To increase ownership percentages of individual stockholders B. To adjust the market price of the shares to a level where more individuals can afford to invest in the stock C. To increase reported net income during subsequent accounting periods D. To decrease income taxes owed. 40. At which point in accounting for inventory in a perpetual system is the cost of goods sold amount determined? A. When the inventory is acquired B. As the inventory is carried in the warehouse and held for sale C. As the ending inventory is counted D. As the inventory is sold 41. Which one of the following transactions causes a decrease to retained earnings? A. Selling treasury stock B. Generating net income for the period C. Declaring a stock dividend D. Paying a cash dividends that was previously declared. 42. The following appears in the stockholders' equity section of Sparkle Corporation's balance sheet at the beginning of 2008 Common Stock, authorized 500000 shares, $2 par value $140000 Additional paid-in-capital 300000 Retained earnings 120000 Total stockholders' equity $560000 Sparkle Corporation reported net income for 208 totaling $211000. It declared cash dividends totaling $150000 and paid cash dividends in the amount of $145000. At the end of 2008, how much will the balance in retained earnings be? A. $331000 B.$181000 C. $186000 D. $61000 E. Some other amount 43. Items should be included in the company's inventory if they A. are being used in the production of income B. are held in anticipation of an increase in value C. are being held for resale in normal business operations D. have been sold as merchandise during the period. 44. Contingent liabilities whose ultimate payment is highly probable and estimable must be A. ignored until actual payment is made B. disclosed only in the footnotes to the financial statements C. recorded in the body of the balance sheet. D. paid in the same period as the related revenue is earned. 45. Which of the following sets of accounts is closed at the end of an accounting period? A. Interest Expense, Interest Payable, Interest Receivable B. Unearned Revenue, Sales Revenue, Interest Revenue C. Interest Expense, Rent Revenue, Dividends D. Retained Earnings, Sales Revenue, Unearned Revenue 46. Which one of the following transactions will ultimately cause a decrease in retained earnings? A. Payment of the current month's telephone bill B. Collection of cash from a customer for services provided in the current month C. Payment of the prior month's account payable balance D. Payment of note payable 47. Which of the following changes describes the purchase of $2000 of Inventory on account? A. Assets and owners' equity increase by $2000 B. Assets and owner's equity decrease by $2000 C. Assets and liabilities increase by $2000 D. Assets and liabilities decrease by $2000 E. No changes in total assets, liabilities, or owners' equity 48. Which one of the following changes describes the receipt of $3000 from the issuance of a long-term note payable? A. Assets and owners' equity increase by $3000 B. Assets and owners' equity decrease by $3000 C. Assets and liabilities increase by $3000 D. Assets and liabilities decrease by $3000 E. No changes in total assets, liabilities, or owners' equity 49. Cohen Company provided the following information during 2011: Purchase of land by issuing a long-term note $550000 Proceeds from issuing long-term debt 300000 Dividends paid to stockholders 120000 360000 800000 Proceeds from issuing stock Proceeds from sale of building Purchase of inventories Purchase of treasury stock 300000 430000 How much is net cash provided (used) by investing activities during 2011? A. $790000 B. $360000 C. $910000 D. $ (120000) E. Some other amount 50. Wells Company's delivery truck, with a cost of $56000 was destroyed by fire. At the time of the fire, the balance of the Accumulated Depreciation account amounted to $38000. The company received $32000 reimbursement from its insurance company. How much is the gain or loss as a result of the fire? A. $24000 loss B. $14000 loss C. $24000 gain D. 14000 gain E. Some other answer True-False Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. Good internal controls prevent fraud The statement of cash flows is often used to evaluate an entity's profitability One reason accounts are closed at yearend is so that all nominal accounts have zero balances to begin the next accounting period The book value of a plant asset is the same as the asset's market value. Property, plant and equipment assets provide benefits that extend beyond the current accounting period, while intangibles benefit only the current period. Bothe the issuance of stock and the performance of services increase revenues for a company. Debit means decrease and credit means increase A company may use a different inventory costing method for reporting to shareholders as it uses to report on its tax return. When the allowance for uncollectible accounts balance is deducted from accounts receivable, the result is the amount the company thinks will collect from customers. Cash payments for depreciation are reported in the operating activities section of the statement of cash flows. The balance sheet provides information on a company's financial position at a specific point in time. Amounts received in advance from customers can be found in the balance sheet. If a company uses FIFO, it must sell the older inventory units first. Matching means that each asset is associated with a corresponding amount on the right side of the accounting equation. The correct label for a balance sheet date at a company's 2010 year end is: \"For the year ending December 31, 2010.\" Equipment is depreciated because its cost must be matched against the revenue it produces over its useful life. On the day money is borrowed on a bank loan, all the interest is accrued so that interest expense is matched in the correct accounting period. The ending inventory of 2009 becomes the beginning inventory amount for 2010. Under FIFO, the units in the ending inventory represent the cost of the most recent purchase(s). Inventory losses can be identified and controlled better under the perpetual inventory method compared to the periodic method. Market value of a company's stock is determined by amounts reported in stockholders' equity at the balance sheet date. An example of a capital expenditure is the payment of transportation charges to receive equipment that will be used in the production of income. Dividends declared are reported on a company's multiple step income statement. Declaring stock dividends reduces retained earnings. Dividends in arrears are preferred dividends that have been declared but not paid. If a company desires to increase its inventory, then it should sell more goods than it purchases during the period. Intangible assets are amortized over the longer of their useful life or their legal life. Current liabilities are amounts that have been paid off during the year. Sales return are reported as a deduction from sales revenue on the income statement. The purpose of accounting is to make a profit