UNIVERSIDAD ANAG, MENDEZ ESCUELA DE NEGOCIOS Y EMPRESARIO PROGRAMA MORA INTERNERATE ACCOUNTING De Now The CRC Staden 1. 1. Trwe (1) or False (F) - 40 points 1. Stockholders equity pret the interest in a corporation held by the 2. Contributed capital includes amounts come from the operation et buste 3. Wo corporation whes to change the per value per shume e sackit matament del Inception 4. The number of outstanding stures et comme stock may be reduced by held in the way 5. In peneral the cost of an anset over the life of the base lower than the one that the aut. & Leasing equipment reduces the risk of blesome to the lead in many cases the risk of medical value to 7. Executory cents should be encued by the live in computing the persent value of the minimum bouw paymenta & A capitalized based always deciated ever the term of the by the A lewe records interestesperto in both a capital and an estige 10A bereit of being to the lewe in the retum of the leased property the end of the lower 11. The primary determee between a direct inancing lean anda sekawe mutatures are dealet's grom 12. The primary purpose of the statement of cash tom da to pode combate ematen but the company rating Investing and financing activities 13. The statement of cash flow provides information to help to date the cash and noch Investing and financing traction during the period 14. Companies comity some cash flow relating to investing or financing the operating sites 15. The first step in the preparation of the statement of cash flow a serie the teach tow them aperating activities 16. The Indirect method aluss net income for them that affected to recht od mutattet cash 17. Companies report the cash flows from purchases and wiles et trading cute cu flowers from uperating 18 Noncash bevesting and financing activities are indeed either in de schedule or in a separate notes the financial statements 19. When accounts receivable decreme during period cab buis seems a bigher than severe reported on an bi 20. When prepaid expenses decrease during a period expenses on the rules are lower than they are on a cabo bi II. Select the best answer (60 polets) 1. Stockholders' equity is also called A net assets B) book assets capital assets D none of the above _ is a major component section of stakelders equity on the halmersbest A) Common stock B) Preferred Meck Contributed capital D) Retained caring receive dividend distributions that the company has paid all other providers of capital these serbum investment A) Contributing holders B) Common shareholders Preferred shareholders Di Primary shareholders represents the amounts that ornmen and preferred stateholder contribute inexces of the stated at per tale A) Tur value B) Retained Accumulated income D) Additional paid.in capital 5 Caesar Company 1.600 shares of the Spur valued for Stopeshare They will record in the common stock account at par value and avadiniet puit-capital in.c.com of par.com A) 3.200-25.00 B) $25.000 1.200 + 5320 522.000 D) 522.000 $25.000 Words Inc. and 150 shares of its purvah common stock for 52 presham They will record in the common stock account at par value and additional para capital income of par.com A) $1,200, 51.680 B) $1200 52.0 951,650 5.20 1) 52.50.51.300 The total number of shares that afirm can legally knuse are called Aallocated share By authorised shares outstanding shares 1) common shares When desuing comment stock for noche consideration, how does a company determine the value of the shume ed? A) management By the fair value of the stocked the fair value of the consideration Rented Dalf the above is the corporation's own shares repurchased by the corporation and held for some future uk A) Authored stock B) Comme Treaty stock D) Preferred stock 10 Hawks, Inc. has 72.000 are authod, 56,000 susteed, and 1300 unes of the ad shares are outstandingan sures are used A) 37,000,29,000 B) 6.00 13.000 2,000 37,000 D) 13,00 61.000 11. S& Companyies 1.500 sures of its neprar common stock. The e price of the stock is operate What is the mal entry required to record the one of the shares A) Common Stock . Addiadin Capital intercomm 1.500 B) Cash LOO Common Stock - no par 1.500 Cash Com Stock no par 1.500 Addl. Tald-in Capital in een of Per-Common D) Cash Common Stockor Caesar Cruise Lines, Inc. issues 7,000 shares of common stock with a 52 par value The price of the stock is 538 per share and the company paidan underwriter $500 in stock icons What is the journal entry required to record the ice of the shares? A) Cash Comment 1 Adal Paid in Capital in Firews of Par-Common 12.00 3 Cash Commen Sk-Spar 195. Adal Paid-in Capital in Excess of Par-Common 152.000 CA Common Steck-Spar Addl. Paid-in Capital in Exces of far-Common 195.500 2.800 192. D Canh 195 Common Stock-2pur 14 Adat Pain Capital in Excess of Par-Common I. 13. Which of the following items are met examples of initial directeme cons Ascommissions By legal fees resulting from the ention of the les coste prepare documents after the excution of these D) All of the above areas of indirecte costs 14. Major reasons why a company may become wolved in beasing to other companies (0) interest Which residual values . tives d) All of these we are correct 15. The amount to be recorded as the cost of an asset under capital de seis equal to the prosent value of the minimum lame payment presentate of the minimum base payments or the fair value of the set whichever is lower prevent value of the minimum base payments plus the present value of any unguaranteed sidual value Garrying value of the the lesson's books 16. Which of the following is a correct statement of one of the capitalitation entera? al the lease transfer ownership of the property to the less the late contains a purchase option o the lease berm soul to or more than 75% of the estimated economic life of these property the minimumlease payments (excluding erecutor cod egual or exceed 90% of the value of the proper 17. When preparing action of net income tech from operation, an in the ending in over the beginning inventory will result in an asement to reported net income because cash is increased because my current at b) info is an expendedusted in computing teaming, but is not of cash 6) the net increase in inventory is part of the dece between cost of predsed and cash paid to 4) all changes in nocash accounts must be didend 18. In the preparation of a statement of cash flows adjustments to net income to reomele net income to call from getting activities indude of gamation.com the dilleroner between the purchase price and the sale price of treasury shock Casuming the cost method el conting for try stock) dividends moved 4) redemption premium on peidermed kodeemed during the period. 19. Tanquin Corporation reports its incente tror investments under the equity method and recognised income 150 from its investment In Trapper Company during thw current year. Trapper ordered no dividends during the current year. Ort Jacquin's statement of shows the $35.000 would # be shown as cash from investing activities b) be shown as an addition to set income in the conciliation of net income to cash from operations w dawna deduction from time in the life in camera d) not be shown 21. Which of the following items involving current trade andments receivable de mest kely to appear in a statement of cash flows the balance in the allowance for diutiul account b) the change in net les sales retums and allowances 4) collection of an account previously written 21. Which of the following independent transactions would come out income to be more than chromatic ) ademain the accounts povablet Dan is in the merchandise mentory count an increase in the accounts payable account dan increase in the accrued was payable account 22. Which of the following transactions would be reported on the statement of ches? a) purchase of treasury stack decatada cash dividend which is not yet been paid patentamento d) purchase of an operational aset by ting commin stock 2. Which of the following would be reported in the operating investing or financing actives of the statement cash flow prepared under the indeed method 4) declaration of an unpaid cash dividend b) acquisition of a factory wanhouse by using long-term de gain on the sale of canh equivales ) write-off of an uncollectible account receivable 24 Choose the combination that best reflects the appropriate classification of cashewed operating testing and francing activities Og Investing a) Cash paid by customers Sale of operational assets b) Dividends received Cash paid by customers c) Sale of operational assets Dividends received Issuance of bonds payable Sale of operational assets Issuance of bonds payable suance of bonds payable Cash paid by customers Dividends received 25. Proceeds from the sale of investments in common stock accounted for by the equity method would be assified into which of the following sections of the statement of cash flows? a) operating b) investing c) financing d) non cash items 26. A gain on the sale of a plant assets should be included in which of the following sections of a statement of cash flows prepared using the indirect method? a investing activities b) operating activities financing activities d) non-cash investing and financing activities 27. Which of the following is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flow? a) sale of an investment for cash b) purchase of a machine for cash - issuance of common stock in exchange for land d) declaration and payment of a cash dividend on common stock 28. Which of the following causes a change in the amount of cash held by a company? write-off of a bad debe b. declaration of a cash dividend Payment of a cash dividend declared in a previous period d) declaration and issuance of a stock dividend 29. On a reconciliation of net income to cash trom operations, depreciation is added back to set income as depreciation a) is a direct outflow of cash. by reduces net income but does not involve an outflow of cash reduces net income and involves an outflow of cash. d) is an outflow of cash to a fund established for the replacement of amets 30 Cash equivalents are a) treasury bills, commercial paper, and money market funds purchased with excess cash b) investments with original maturities of three months or less Readily convertible into known amounts of cash. d) all of these answers are correct TII UNIVERSIDAD ANAG, MENDEZ ESCUELA DE NEGOCIOS Y EMPRESARIO PROGRAMA MORA INTERNERATE ACCOUNTING De Now The CRC Staden 1. 1. Trwe (1) or False (F) - 40 points 1. Stockholders equity pret the interest in a corporation held by the 2. Contributed capital includes amounts come from the operation et buste 3. Wo corporation whes to change the per value per shume e sackit matament del Inception 4. The number of outstanding stures et comme stock may be reduced by held in the way 5. In peneral the cost of an anset over the life of the base lower than the one that the aut. & Leasing equipment reduces the risk of blesome to the lead in many cases the risk of medical value to 7. Executory cents should be encued by the live in computing the persent value of the minimum bouw paymenta & A capitalized based always deciated ever the term of the by the A lewe records interestesperto in both a capital and an estige 10A bereit of being to the lewe in the retum of the leased property the end of the lower 11. The primary determee between a direct inancing lean anda sekawe mutatures are dealet's grom 12. The primary purpose of the statement of cash tom da to pode combate ematen but the company rating Investing and financing activities 13. The statement of cash flow provides information to help to date the cash and noch Investing and financing traction during the period 14. Companies comity some cash flow relating to investing or financing the operating sites 15. The first step in the preparation of the statement of cash flow a serie the teach tow them aperating activities 16. The Indirect method aluss net income for them that affected to recht od mutattet cash 17. Companies report the cash flows from purchases and wiles et trading cute cu flowers from uperating 18 Noncash bevesting and financing activities are indeed either in de schedule or in a separate notes the financial statements 19. When accounts receivable decreme during period cab buis seems a bigher than severe reported on an bi 20. When prepaid expenses decrease during a period expenses on the rules are lower than they are on a cabo bi II. Select the best answer (60 polets) 1. Stockholders' equity is also called A net assets B) book assets capital assets D none of the above _ is a major component section of stakelders equity on the halmersbest A) Common stock B) Preferred Meck Contributed capital D) Retained caring receive dividend distributions that the company has paid all other providers of capital these serbum investment A) Contributing holders B) Common shareholders Preferred shareholders Di Primary shareholders represents the amounts that ornmen and preferred stateholder contribute inexces of the stated at per tale A) Tur value B) Retained Accumulated income D) Additional paid.in capital 5 Caesar Company 1.600 shares of the Spur valued for Stopeshare They will record in the common stock account at par value and avadiniet puit-capital in.c.com of par.com A) 3.200-25.00 B) $25.000 1.200 + 5320 522.000 D) 522.000 $25.000 Words Inc. and 150 shares of its purvah common stock for 52 presham They will record in the common stock account at par value and additional para capital income of par.com A) $1,200, 51.680 B) $1200 52.0 951,650 5.20 1) 52.50.51.300 The total number of shares that afirm can legally knuse are called Aallocated share By authorised shares outstanding shares 1) common shares When desuing comment stock for noche consideration, how does a company determine the value of the shume ed? A) management By the fair value of the stocked the fair value of the consideration Rented Dalf the above is the corporation's own shares repurchased by the corporation and held for some future uk A) Authored stock B) Comme Treaty stock D) Preferred stock 10 Hawks, Inc. has 72.000 are authod, 56,000 susteed, and 1300 unes of the ad shares are outstandingan sures are used A) 37,000,29,000 B) 6.00 13.000 2,000 37,000 D) 13,00 61.000 11. S& Companyies 1.500 sures of its neprar common stock. The e price of the stock is operate What is the mal entry required to record the one of the shares A) Common Stock . Addiadin Capital intercomm 1.500 B) Cash LOO Common Stock - no par 1.500 Cash Com Stock no par 1.500 Addl. Tald-in Capital in een of Per-Common D) Cash Common Stockor Caesar Cruise Lines, Inc. issues 7,000 shares of common stock with a 52 par value The price of the stock is 538 per share and the company paidan underwriter $500 in stock icons What is the journal entry required to record the ice of the shares? A) Cash Comment 1 Adal Paid in Capital in Firews of Par-Common 12.00 3 Cash Commen Sk-Spar 195. Adal Paid-in Capital in Excess of Par-Common 152.000 CA Common Steck-Spar Addl. Paid-in Capital in Exces of far-Common 195.500 2.800 192. D Canh 195 Common Stock-2pur 14 Adat Pain Capital in Excess of Par-Common I. 13. Which of the following items are met examples of initial directeme cons Ascommissions By legal fees resulting from the ention of the les coste prepare documents after the excution of these D) All of the above areas of indirecte costs 14. Major reasons why a company may become wolved in beasing to other companies (0) interest Which residual values . tives d) All of these we are correct 15. The amount to be recorded as the cost of an asset under capital de seis equal to the prosent value of the minimum lame payment presentate of the minimum base payments or the fair value of the set whichever is lower prevent value of the minimum base payments plus the present value of any unguaranteed sidual value Garrying value of the the lesson's books 16. Which of the following is a correct statement of one of the capitalitation entera? al the lease transfer ownership of the property to the less the late contains a purchase option o the lease berm soul to or more than 75% of the estimated economic life of these property the minimumlease payments (excluding erecutor cod egual or exceed 90% of the value of the proper 17. When preparing action of net income tech from operation, an in the ending in over the beginning inventory will result in an asement to reported net income because cash is increased because my current at b) info is an expendedusted in computing teaming, but is not of cash 6) the net increase in inventory is part of the dece between cost of predsed and cash paid to 4) all changes in nocash accounts must be didend 18. In the preparation of a statement of cash flows adjustments to net income to reomele net income to call from getting activities indude of gamation.com the dilleroner between the purchase price and the sale price of treasury shock Casuming the cost method el conting for try stock) dividends moved 4) redemption premium on peidermed kodeemed during the period. 19. Tanquin Corporation reports its incente tror investments under the equity method and recognised income 150 from its investment In Trapper Company during thw current year. Trapper ordered no dividends during the current year. Ort Jacquin's statement of shows the $35.000 would # be shown as cash from investing activities b) be shown as an addition to set income in the conciliation of net income to cash from operations w dawna deduction from time in the life in camera d) not be shown 21. Which of the following items involving current trade andments receivable de mest kely to appear in a statement of cash flows the balance in the allowance for diutiul account b) the change in net les sales retums and allowances 4) collection of an account previously written 21. Which of the following independent transactions would come out income to be more than chromatic ) ademain the accounts povablet Dan is in the merchandise mentory count an increase in the accounts payable account dan increase in the accrued was payable account 22. Which of the following transactions would be reported on the statement of ches? a) purchase of treasury stack decatada cash dividend which is not yet been paid patentamento d) purchase of an operational aset by ting commin stock 2. Which of the following would be reported in the operating investing or financing actives of the statement cash flow prepared under the indeed method 4) declaration of an unpaid cash dividend b) acquisition of a factory wanhouse by using long-term de gain on the sale of canh equivales ) write-off of an uncollectible account receivable 24 Choose the combination that best reflects the appropriate classification of cashewed operating testing and francing activities Og Investing a) Cash paid by customers Sale of operational assets b) Dividends received Cash paid by customers c) Sale of operational assets Dividends received Issuance of bonds payable Sale of operational assets Issuance of bonds payable suance of bonds payable Cash paid by customers Dividends received 25. Proceeds from the sale of investments in common stock accounted for by the equity method would be assified into which of the following sections of the statement of cash flows? a) operating b) investing c) financing d) non cash items 26. A gain on the sale of a plant assets should be included in which of the following sections of a statement of cash flows prepared using the indirect method? a investing activities b) operating activities financing activities d) non-cash investing and financing activities 27. Which of the following is a non-cash transaction that should be disclosed in a schedule accompanying the statement of cash flow? a) sale of an investment for cash b) purchase of a machine for cash - issuance of common stock in exchange for land d) declaration and payment of a cash dividend on common stock 28. Which of the following causes a change in the amount of cash held by a company? write-off of a bad debe b. declaration of a cash dividend Payment of a cash dividend declared in a previous period d) declaration and issuance of a stock dividend 29. On a reconciliation of net income to cash trom operations, depreciation is added back to set income as depreciation a) is a direct outflow of cash. by reduces net income but does not involve an outflow of cash reduces net income and involves an outflow of cash. d) is an outflow of cash to a fund established for the replacement of amets 30 Cash equivalents are a) treasury bills, commercial paper, and money market funds purchased with excess cash b) investments with original maturities of three months or less Readily convertible into known amounts of cash. d) all of these answers are correct TII