SECTION A-Multiple Choice Questions (30 marks) Answer ALL questions from this section. Choose the best possible answer (3 marks each). 1. Which of the following activities will not reported in the statement of cash flows? A) Operating activities B) Investing activities C) Marketing activities D) Financing activities 2. The sequence of accounting procedures used to record, classify and summarize accounting information is called the A) accounting period. B) accounting cycle. C) accrual accounting. D) double entry bookkeeping. 3. When an account is written off using the allowance method, accounts receivable A) is unchanged and the allowance for impairment increases. B) increases and the allowance for impairment increases. C) decreases and the allowance for impairment increases. D) decreases and the allowance for impairment decreases. 4. The accounts receivable turnover rate for Fairbanks Corporation is 8, and for Pickford Company is 10. These statistics indicate that A) Pickford collects its accounts receivable within 10 days on average while Fairbanks collects its accounts receivable in 8 days on average. B) Pickford writes off as uncollectible a greater percentage of its accounts receivable than does Fairbanks Company. C) Pickford collects its accounts receivable faster than does Fairbanks Company. D) Pickford makes on average 10 credit sales annually to each of its customers, while Fairbanks makes 8 credit sales to each customer. 5. In a perpetual inventory system, the flow of inventory cost is A) only through the statement of financial position and not the income statement. B) only through the income statement and not the statement of financial position. C) first through the income statement, then through the statement of financial position. D) first through the statement of financial position, then through the income statement