Accounting 1 Final SG

Which of the following accounts would not be reported in the Property, Plant, and Equipment section of a balance sheet?

Depreciation Expense--Buildings

Becky & Co. reported net income for the current year. Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

Depreciation expense was recorded for the year.

The retained earnings account balance for a large corporation is 10,000,000. This amount represents

Earnings that have not been distributed to shareholders.

Cash flows from borrowing and paying off a 90-day bank loan are classified as

Financing activities

Cash flows from acquiring and disposing of long-term assets are classified as

Investing activities

Authorized stick represents?

Maximum number of shares that can be issued

Cash flows from acquiring and selling products are classified as

Operating activities

When using indirect method, how is an + in accounts receivable during the year shown on the STMT of cash flows?

Operating activity

Which statement is true concerning operating assets?

Operating assets are used over two or more periods to generate revenues

Which of the following is an account in stockholders equity?

Retained Earnings

Becky's company reported net income of $150,000 for 2013, but its cash balance decreased $40,000. Which financial statement should Becky's management refer to for an explanation of this situation?

Statement of cash flows

Stockholders prefer to invest in preferred stock because

The dividends are paid on preferred stock before they are paid on common stock.

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

The indirect method

Cash flows from issuing and repurchasing stock or issuing and repaying (retiring) debt are classified as

Financing activities

Occasionally, companies engage in important investing and financing activities which do not affect cash. If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared?

In a note to the financial statements or in a supplemental schedule.

When using the direct method, how is depreciation expense recorded on the statement of cash flows?

Not reported on the statement of cash flows