1. Which of the following is a significant investment and financing transaction that does NOT affect cash?

a) Sale of common shares in cash (cash).

b) Purchase of land by issuing a long-term promissory note.

c) Issuance of bonds payable in exchange for cash.

d) Purchase of a franchise in cash (cash).

2. When a company receives from its clients the advance payment for a service that it will offer in the future, it will present in the Situation Statement (Balance Sheet) as:

a)Expense.

b)Income.

c)Current debt (current liability).

d)Current asset.

3. The loss or gain from discontinued operations will be presented in the Statement of Income and Expenses

1. in the other income and expenses section.

2. before operating income.

3. as part of general and administrative expenses.

4. as a special item net of taxes (contributions).

4.Companies that sell securities on the market must submit annually to the Securities and Exchange Commission (SEC):

1. Annual report in colors
2. The 10K way
3. All of the above are correct
4. Charts with trend in product sales

5.Reporting high accounts receivable expense can be an example of

1. Aggressive accounting
2. Conservative accounting
3. Simple accounting

6.

7.Interest payment is reported as:

1. Decrease in cash in the statement of changes in the equity of the owners.
2. Decrease in cash in the financing activities section.

3. Decrease in cash in the operational activities section.

4. Decrease in cash in the investment activities section.

8. Indicate which financial statement you should examine if you are analyzing the financial statements of a company and want to know the reasons why the net income and cash of the company are different at the end of the period.

1. statement of financial position.

2. statement of changes in Equity.
3. Statement of cash flows.

9.The notes that are presented in the annual report of a company

1. describes management's plans for the coming year.
2. They usually disclose the amount of salary of the managers.
3. They explain the company's accounting policies.
4. They are not an integral part of the financial statements.