Managerial Accounting 5315 Exam I + Quiz 3, Quiz 4, Wiley Plus Ch 1-3, Module 1 & Module 2

The book value of stockholders' equity (the amount reported on the balance sheet) is most typically equal to the market value of the equity of a company.

False / F

Interest expense appears in which financial statement?

Income Statement

A statement of cash flows usually does not include which of the following?Net income Increase in accounts receivable Contributed capital Depreciation expense None of the above

None of the Above

In addition to purchased assets like inventories and equipment, companies also may report on their balance sheets intangible assets such as the value of a brand name.

true / t

The fiscal 2016 balance sheet for Whole Foods Market reports the following data (in millions). Cash and Cash Equivalents = $351 Marketable Securities = $379 Accounts Receivable = $242 Merchandise Inventories = $517 Current Assets = $1,975 Current Liabilities = $1,341 What is the company's current ratio?

1.47 Rationale: Current ratio = Current assets / Current liabilities = $1,975 / $1,341 = 1.47

A company has total assets of $650 million and $375 million in equity. Liabilities represent a. a smaller proportion of assets compared to equity. b. more than seventy-five percent of equity. c. the same proportion of assets as equity. d. a greater proportion of assets compared to equity.

A

Rent Expense is reported on which financial statement? A) income statement B) balance sheet C) statement of owner's equity D) none of the answers listed

A) income statement

The purchase of supplies for cash will A) increase Supplies and decrease Cash B) increase Supplies Expense and decrease Cash C) decrease Cash and increase Accounts Payable D) increase Supplies Expense and increase Accounts Payable E) decrease Cash and increase Capital

A) increase Supplies and decrease Cash

The proof that the debits and credits in the ledger are equal is called the A) trial balance B) journal C) statement of owner's equity D) income statement E)balance sheet

A) trial balance

... refers to the concept that financial statements are linked to each other and linked across time.

Articulation

Fundamental Accounting Equation

Assets = Liabilities + Owner's Equity

Current liabilities are $10,000, long-term liabilities are $20,000, common stock is $50,000, and retained earnings totals $70,000. How much is total stockholders' equity? a. $70,000 b. $120,000 c. $150,000 d. $140,000

B

The ending retained earnings balance appears on a. the retained earnings statement only. b. both the retained earnings statement and the balance sheet. c. the balance sheet only. d. the income statement and the retained earnings statement.

B

What kind of classification is cost of goods sold? a. Liability b. Expense c. Revenue d. Asset

B

Income from Services would be shown on the __________. A) debit side of the trial balance B) credit side of the trial balance C) not on the trial balance D) on both the debit and credit side of the trial balance

B) credit side of the trial balance

The ___________ shows total revenue minus total expenses. A) balance sheet B) income statement C) statement of owner's equity D) cash flow statement

B) income statement

The amounts that the business entity owes its creditors are referred to as A) assets B) liabilities C) owner's equity D) revenues E) expenses

B) liabilities

Magna Company paid $2,400 for a 6-month liability insurance policy. At the time of payment, this transaction should be recorded as A) insurance expense, $2,400 B) prepaid insurance, $2,400 C) insurance expense, $400 D) prepaid insurance, $400

B) prepaid insurance, $2,400

How would a sale of $400 of inventory on credit affect the balance sheet if the cost of the inventory sold was $160? It would increase noncash assets by $400 and increase equity by $400 It would decrease noncash assets by $160 and decrease equity by 160 It would increase cash by $400 and increase equity by $400 Both A and B, above happen simultaneously None of the above

Both A and B, above happen simultaneously

Stockholders' equity represents a. economics resources to be used in the future. b. claims of creditors. c. claims of owners. d. the difference between revenues and expenses.

C

The correct order of presentation in a classified balance sheet for the following current assets is a. accounts receivable, cash, prepaid insurance, inventories. b. cash, inventories, accounts receivable, prepaid insurance. c. cash, accounts receivable, inventories, prepaid insurance. d. inventories, cash, accounts receivable, prepaid insurance.

C

The payment of dividends is an example of a(n) a. delivery activity. b. operating activity. c. financing activity. d. investing activity.

C

Costco Wholesale Corporation collects annual non-refundable membership fees from customers. When should Costco recognize revenue for these membership fees?

Costco should record membership fees evenly over the year even if the fee is nonrefundable because Sam's has an obligation to stay open for business for a year to honor the customer's membership. The correct answer is: Evenly over the membership year

Net Working Capital (NWC) =

Current Assets (CA) - Current Liabilities (CL)

A company purchased a tract of land on which it expects to build a production plant on in approximately five years. During the five years before construction, the land will be idle. In what classification should the land be reported? a. An intangible asset b. Property, plant, and equipment c. Land expense d. A long-term investment

D

Which of the following would not appear on the income statement? a. Service revenue b. Interest expense c. Net income d. Dividends paid

D

Which statement presents information as of a specific point in time? a. Statement of cash flows b. Retained earnings statement c. Income statement d. Balance sheet

D

An example of a liability is A) cash B) prepaid insurance C) rent expense D) accounts payable

D) accounts payable

A one-owner business is called a A) corporation B) partnership C) sole-ownership D) sole-proprietorship

D) sole-proprietorship

Assets are reported on the balance sheet at their current market value.

False / F (Assets are generally reported at historical costs. An exception is marketable securities.)

The income statements of the prior and current year are linked via the balance sheet.

False / F (Balance sheets are linked)

A customer's prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the balance sheet to the income statement. This is an example of the revenue recognition principle.

False / f (...)

How would cash collected on accounts receivable affect the balance sheet? Increase liabilities and decrease equity Decrease liabilities and increase equity Increase assets and increase equity Increase assets and decrease assets

Increase assets and decrease assets (When Cash is collected from Accounts receivable, it increases the Cash Balance and reduces the Accounts Receivable balance. Both the items comes under Current Assets.)

The current ratio is used to assess:

Liquidity Rationale: The current ratio is one of two common ratios used to assess the degree of a company's liquidity.

Apple Inc. and Microsoft Corporation are competitors in the computer industry. Following is a table of Total revenue and R&D expenses for both companies. Apple Inc. Total revenue 2016 = $215,639 2015 = $233,715 2014 = $182,795 R&D expenses 2016 = $10,045 2015 = $8,067 2014 = $6,041 Microsoft Corporation (in millions) Total revenue 2016 = $85,320 2015 = $93,580 2014 = $86,833 R&D expenses 2016 = $11,988 2015 = $12,046 2014 = $11,381 Which of the following is true?

Microsoft Corporation is more R&D intensive in 2016 than in 2015. take the r&d expense and divide by total revenue to get the Common size R&D ex...10,045/215,639 = 4.66%

How would a purchase of $300 of inventory on credit affect the income statement? Answers: It would increase liabilities by $300 It would decrease retained earnings by $300 It would increase assets by $300 Both A and C, above None of the above

None of the above (The purchase on credit increases both accounts payable and inventory, which are balance sheet accounts. It would, therefore, have no effect on the income statement. )

The 2017 Form 10-K of Oracle Corporation, for the May 31, 2017 year-end, included the following information relating to their allowance for doubtful accounts: Balance in allowance at the beginning of the year $327 million, accounts written off during the year of $137 million, balance in allowance at the end of the year $319 million. What did Oracle Corporation report as bad debt expense for the year?

Rationale: Balance in allowance at the beginning of the year + bad debt expense - accounts written off during the year = balance in allowance at the end of the year. Bad debt expense = $319 million - $327 million + $137 million = $129 million. The correct answer is: $129 million

Which of the following is included as a component of stockholders' equity? Buildings Retained earnings Prepaid property taxes Accounts payable Dividends

Retained Earnings

Apple, Inc. reported research and development expense of $10,045 million on its 2016 income statement. This expense included many types of costs. Which of the following types of costs would not be included in the $10,045 million?

The correct answer is: Supplies and inventory related to R&D activities and new-product sales

For 2017, Stoneland Corporation reported net income, $24,000; net sales, $400,000; and average shares outstanding, 6,000. There were no preferred stock dividends. How much was the 2017 earnings per share? a. $4.00 b. $16.67 c. $66.67 d. $0.06

A

Which of the following transactions does NOT include an increase to expenses? A) Received and paid the phone bill B) Paid monthly rent C) Received cash for services performed D) Paid the week's wages E) Bought advertising for cash

C) Received cash for services performed

A debit may signify a decrease in a(n) A) liability account B) asset account C) revenue account D) liability and a revenue account E) asset and a revenue account

D) liability and a revenue account

Posting involves A) transferring information from the income statement to the statement of owner's equity. B) transferring information ledger to the journal C) transferring information from the ledger to the balance sheet D) transferring information from the journal to the ledger

D) transferring information from the journal to the ledger

The time period on the _________ represents only one date. A) income statement B) statement of owner's equity C) balance sheet D) none of the answers listed

C) balance sheet

What is the basic accounting equation?

assets = liabilities + stockholders' equity

Liabilities and equities are both claims against the assets of a company

true / T

Under accrual accounting principles, the cost of inventory should be reported as an expense in the income statement when it is sold, regardless of when it was purchased.

true / T

Selected balance sheet data follow for Goodyear Tire & Rubber Company for the year ended December 31, 2016 (in millions): Total Operating Liabilities = $6,307 Total Nonoperating Liabilities = $5,479 Total CurrentLiabilities = $4,817 Total Liabilities = $11,786 Total Liabilities and Shareholders' Equity = $16,511 What is the company's liabilities-to-equity ratio?

2.49 Rationale: Times interest earned = $11,786 / ($16,511 - $11,786) = 2.49 The correct answer is: 2.49

Earnings per share is computed by dividing net income a. less preferred stock dividends by the average common shares outstanding. b. less preferred stock dividends by the ending common shares outstanding. c. by the ending common shares outstanding. d. by the average common shares outstanding.

A

Resources owned by a business are referred to as a. assets. b. revenues. c. stockholders' equity. d. liabilities.

A

Saira's Maid Service began the year with total assets of $120,000 and stockholders' equity of $40,000. During the year the company earned $90,000 in net income and paid $20,000 in dividends. Total assets at the end of the year were $215,000. How much are total liabilities at the end of the year? a. $105,000 b. $80,000 c. $90,000 d. $110,000

A

Which of the following is an example of a financing activity? a. Issuing shares of common stock b. Buying delivery equipment c. Selling goods on account d. Buying inventory

A

Liquidity refers to:

A company's cash availability Rationale: Liquidity refers to cash, the amount on hand, the amount generated from operating activities, and the amount that can be raised on relatively short notice.

S. Storm has $20,000 invested in his business and the business owes creditors $8,000. Determine the amount of assets in the business A) $28,000 B) $12,000 C) $14,000 D) None of the above

A) $28,000 28,000 = 8,000 + 20,000

Accounts Payable is recorded on which financial statement? A) balance sheet B) income statement C) statement of owner's equity D) none of the above listed

A) balance sheet

Utilities Expense would be shown on the _____________. A) debit side of the trial balance B) credit side of the trial balance C) not on the trial balance D) debit and credit side of the trial balance

A) debit side of the trial balance

On its 2016 income statement, Abbott Laboratories reported research and development expense of $1,422,000,000. Which of the following statements must be true?

A. Abbott Laboratories spent $1,422,000,000 in cash to develop new products and improve old products. B. Research and development expense reduced Abbott Laboratories 2016 net income by $1,422,000,000. C. Abbott Laboratories capitalized at least $1,422,000,000 of research and development costs in 2016. D. The $1,422,000,000 included amortized research and development costs from prior years that were not previously expensed, because Abbott Laboratories incurs such expenses each year. E. None of the above Abbott Laboratories included in research and development expense certain non-cash expenses such as depreciation on related assets, thus (A) is not correct. Abbott Laboratories recorded deferred tax expense on the product development expense, thus net income was affected on an after-tax basis and (B) is therefore not correct. Under US GAAP, firms may not capitalize R&D costs, thus (C) is not correct. All R&D expenses must be included in the income statement in the period, thus (D) is wrong. The correct answer is: None of the above

Which of the following items creates complications related to revenue recognition?

A. Bonuses tied to sales goals B. Long-term construction contracts C. Multiple element sales contracts D. Consignment goods E. All of the above Each of these types of revenue or business conditions creates risk associated with revenue recognition. Each requires good internal controls to prevent and detect inappropriate revenue recognition, as well as extra management vigilance and auditor care. The correct answer is: All of the above

In what order are current assets listed? a. By importance b. Alphabetically c. By liquidity d. By longevity

C

The financial statements for Harold Corporation contained the following information: Accounts receivable $ 5,000 Sales revenue 75,000 Cash 15,000 Salaries and wages expense 20,000 Rent expense 10,000 How much was Harold's net income? a. $65,000 b. $15,000 c. $45,000 d. $60,000

C

Which financial statement reports assets, liabilities, and stockholders' equity? a. Retained earnings statement. b. Income statement. c. Balance sheet. d. Statement of cash flows.

C

Which is an indicator of profitability? a. Free cash flow b. Current ratio c. Earnings per share d. Debt to total assets ratio

C

Which of the following is not classified as a current asset? a. Accounts receivable b. Prepaid expenses c. Patents d. Inventory

C

Which of the following would not appear on the retained earnings statement? a. Dividends b. Beginning retained earnings balance c. Service revenue d. Net income

C

Which statement about users of accounting information is incorrect? a. Taxing authorities are considered external users. b. Present creditors are considered external users. c. Regulatory authorities are considered internal users. d. Management is considered an internal user.

C

Palmer Hand Clinic has the following accounts and balances: Cash, $2,350 Accounts Receivable, $280 Professional Equipment, $1,200 Office Equipment, $6,700 Accounts Payable, $4,380 P. Palmer, Capital, $2,000 Income from Services, $6,000 Rent Expense, $1,850 What is the amount of assets? A) $10,250 B) $2,350 C) $10,530 D) $16,530

C) $10,250 Cash $2,350 Accounts Receivable $280 Professional Equipment $1,200 Office Equipment $6,700 = $10,530

The receipt of cash on account from a customer should be recorded as A) a debit to Cash and a credit to Accounts Payable B) a debit to Cash and a credit to Income from Services C) a debit to Cash and a credit to Accounts Receivable D) a debit to Cash and a credit to the Capital account E) none of these

C) a debit to Cash and a credit to Accounts Receivable

The liability account _________ us used for short-term liabilities or charge accounts, usually due within 30 days. A) short-term payable B) liability payable C) accounts payable D) accounts receivable

C) accounts payable

If a company has excessive debt compared to its future earning prospects a. its cost of borrowing will decrease. b. its stock price will rise. c. its shareholders will be immune to any potential losses. d. it is likely to be in financial distress.

D

Paying interest expense and receiving interest revenue are examples of a. delivery activities. b.investing activities. c. financing activities. d. operating activities

D

The balance sheet a. summarizes the changes in total equity for a specific period of time. b. reports the changes in assets, liabilities, and stockholders' equity over a period of time. c. presents the revenues and expenses for a specific period of time. d. reports the assets, liabilities, and stockholders' equity at a specific date.

D

If an owner invests her computer and printer in the business, there is an increase to A) Cash and Capital B) Computer Equipment and Drawing C) Cash and Drawing D) Computer Equipment and Capital E) Computer Equipment and Cash

D) Computer Equipment and Capital

Newton Company purchases equipment on account. What are the effects on the fundamental accounting equation? A) assets increase; liabilities, no effect; owner's equity increases B) assets increase; liabilities, decrease; owner's equity increases C) assets increase; liabilities, increase; owner's equity decreases D) assets increase; liabilities, increase; owner's equity no effect E) assets increase; liabilities, decrease; owner's equity no effect

D) assets increase; liabilities, increase; owner's equity no effect

A business received $600 cash from charge customers to apply on account. The effect of the transaction is an increase in an asset and a(n) A) increase in revenue B) decrease in capital C) decrease in a liability D) decrease in an asset E) increase in capital

D) decrease in an asset

For a journal entry to be complete, it must contain A) the date B) a debit entry C) a credit entry D) an explanation E) all of the answers listed

E) all of the answers listed

A credit may result in A) an increase in a liability account B) an increase in a revenue account C) a decrease in an asset account D) an increase in the Capital account E) all of these

E) all of these

The statement of cash flows has two main sections: cash flows from operating activities and cash flows from investing activities

False / F (3 Sections; Operating, Investing, and Financing cash flows)

Retained earnings articulate across time which means that last period's retained earnings plus current period net income (or loss) is equal to the current period's retained earnings.

False / F (Last period's retained earnings plus current period net income (or loss) less any dividends paid, is equal to the current period's retained earnings)

An accrual of wages expense would produce what effect on the balance sheet?

Increase liabilities and decrease earned capital

Which of the following is a measure of liquidity?

Quick ratio = (Cash + Marketable securities + Accounts receivable) / Current liabilities Rationale: The only measure of liquidity listed above is Quick Ratio which is simply a variation of the Current Ratio (Current ratio = Current assets / Current liabilities) to focus on quick assets (cash, securities, and receivables).

The 2016 financial statements of Leggett & Platt include the accounts receivable footnote: Total accounts and other receivables at December 31 consisted of the following: Total accounts and other receivables 2016 =$493.8 2015 = $529.5 Allowance for doubtful accounts 2016 = (7.2) 2015 = (9.3) Total accounts and other receivables, net 2016 = $486.6 2015 = $520.2 The balance sheet reports total assets of $2,984.1 million at December 31, 2016. The common-size amount for gross accounts and other receivables are:

Rationale: $493.8 / $2,984.1 = 16.5% The correct answer is: 16.5%

McKinnon Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcoming season and receives $960,000 cash. The season starts January 1, 2018, with five home games occurring monthly over the next six months. How much revenue will McKinnon Enterprises recognize from its season ticket sales through the end of April 2018?

Rationale: Deferred revenue recognized: ($960,000 / 6 months) x 4 months = $640,000 The correct answer is: $640,000

The 2016 financial statements of BNSF Railway Company report total revenues of $19,829 million, accounts receivable of $1,272 million for 2016 and $1,198 million for 2015. The company's accounts receivable turnover for the year is:

Rationale: Receivables turnover = Sales / Average AR = $19,829 / [($1,272 + $1,198) / 2] = 16.1 times per year. The correct answer is: 16.1 times

The 2016 balance sheet of Whole Foods Market reports operating assets of $5,489 million, operating liabilities of $2,066 million, and total liabilities of $3,117 million. Whole Food's average net operating assets are:

There is not enough information to calculate the amount. Rationale: Average net operating assets requires two years of balance sheet data. The question only provided one year's data, thus, there is not enough information to calculate the amount.

Ticketmaster contracts with the producer of Blue Man Group to sell tickets online. Ticketmaster charges each customer a fee of $9 per ticket and receives $22 per ticket from the producer. Ticketmaster does not take control of the ticket inventory. Average ticket price for the event is $105. How much revenue should Ticketmaster recognize for each Blue Man Group ticket sold?

Ticketmaster should record $31 revenue each time it sells a ticket. Of that, $9 will be received in cash and $22 will be recorded as receivable from the Blue Man Group producers. The correct answer is: $31 because both the fee from the customer and the Blue Man Group producer are earned

The DuPont analysis disaggregates return on equity into profitability, productivity and leverage components. True or False

True Rationale: The DuPont disaggregation of return on equity is: ROE = Profit margin (PM) × Asset turnover (AT) × Financial leverage (FL). These three terms measure profitability, productivity, and leverage respectively.

Assets are listed on the balance sheet in order of liquidity and liabilities are listed in order of maturity

True / T

Preparing financial statements involves two steps: recording transactions during the period and adjusting records to ensure all events are properly recorded.

True / T

A statement of cash flows usually includes: Net income Increase in accounts receivable Contributed capital Depreciation expense

True / T / All of the above

In each case, identify whether the item would appear on the balance sheet or income statement. a. Income tax expense b. Inventory c. Accounts payable d. Retained earnings e. Equipment f. Sales revenue g. Cost of goods sold h. Common stock i. Accounts receivable j. Interest expense

a. income statement b. balance sheet c. balance sheet d. balance sheet e. balance sheet f. income statement g. income statement h. balance sheet i. balance sheet j. income statement

Listed here are some items found in the financial statements of Finzelberg. Indicate in which financial statement each item would appear. a. service revenue b. equipment c. advertising expense d. accounts receivable e. common stock f. interest payable

a.income statement b. balance sheet c. income statement d. balance sheet e. balance sheet f. balance sheet

The full disclosure principle dictates that: a. financial statements should disclose all events and circumstances that would matter to users of financial statements. b. financial statements should disclose all assets at their cost. c. financial statements should disclose only those events that can be measured in dollars. d. financial statements should not be relied on unless an auditor has expressed an unqualified opinion on them.

A

Selected ratios follow for Nike, Inc., for the year ended December 31, 2013 (in millions): Return on Net Operating Assets (RNOA) = 43.6% Profit Margin (PM)= 11.6% Net Operating Profit Margin (NOPM) = 11.4% Asset Turnover (AT) = 1.51 Financial Leverage (FL) = 1.72 What is the company's return on equity (ROE) for the year?

30.1% Rationale: ROE = PM × AT × FL = 11.6% × 1.51 × 1.72 = 30.1%

Selected income statement data follow for Harley Davidson, Inc., for the year ended December 31, 2016 (in thousands): Income before Provision for Income Taxes = $1,023,911 Interest Expense = $29,670 Statutory Tax Rate = 37% Provision for Income Taxes = $331,747 Net Income = $692,164 What is the company's times interest earned ratio?

35.5 Rationale: Times interest earned = ($1,023,911 + $29,670) / $29,670 = 35.5 The correct answer is: 35.5

Accounts Receivable would be shown on the __________. A) debit side of the trial balance B) credit side of the trial balance C) not on the trial balance D) on both the debit and credit side of the trial balance

A) debit side of the trial balance

Which of the following is considered property, plant, and equipment on a classified balance sheet? a. Copyright b. Land c. Supplies d. Investment in Intel Corporation stock

B

Which of the following is not one of the three primary business activities? a. Operating b. Advertising c. Investing d. Financing

B

Which one of the following is not an alternate means of expressing a ratio? a. Proportion b. Dollar amount c. Rate d. Percentage

B

The order the financial statements are prepared is as follows: A) statement of owner's equity, income statement, balance sheet B) income statement, balance sheet, statement of owner's equity C) income statement, statement of owner's equity, balance sheet D) balance sheet, income statement, statement of owner's equity

C) income statement, statement of owner's equity, balance sheet

Pidcoke Company sold services on account, $23,000. This transactions should be recorded as a(n) A) increase to cash B) decrease to revenue C) increase to accounts receivable D) increase to accounts payable

C) increase to accounts receivable

A ___________ is a book in which business transactions are recorded. A) ledger B) balance sheet C) journal D) trial balance

C) journal

A(n) ____________ is money paid directly to the owner. A) expense B) capital investment C) withdrawal D) none of the answers listed

C) withdrawal

In a classified balance sheet, how are assets usually classified? a. Current assets; long-term assets; property, plant, and equipment; and intangible assets b. Current assets; long-term investments; property, plant, and equipment; and common stock c. Current assets; long-term investments; tangible assets; and intangible assets d. Current assets; long-term investments; property, plant, and equipment; and intangible assets

D

In which of the following sequences are the financial statements usually prepared? a. Balance sheet, retained earnings statement, statement of cash flows, and income statement. b. Income statement, balance sheet, retained earnings statement, and statement of cash flows. c. Balance sheet, statement of cash flows, income statement and retained earnings statement. d. Income statement, retained earnings statement, balance sheet, and statement of cash flows.

D

The most common description of IFRS as contrasted to GAAP is that a. GAAP is principles based and IFRS is concepts based. b. GAAP is principles based and IFRS is rules based. c. GAAP is rules based and IFRS is rules based. d. GAAP is rules based and IFRS is principles based.

D

Ratios provide one way to compare companies in the same industry regardless of their size. True or False

True Rationale: Ratios mitigate problems arising from different sizes of companies.

Indicate which statement you would examine to find each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows. a. Revenue during the period b. Supplies on hand at the end of the year c. Cash received from issuing new bonds during the period d. Total debts outstanding at the end of the period

a. income statement b. balance sheet c. statement of cash flows d. balance sheet

Which one of the following are liabilities? a. cash b. accounts payable c. dividends d. accounts receivable e.supplies f. equipment g. salaries and wages payable h. service revenue i. rent expense

a. not a liability b.liability c. not a liability d. not a liability e. not a liability f. not a liability g. liability h. not a liability i.not a liability

Indicate in which part of the statement of cash flows each item would appear: operating activities, investing activities, or financing activities. (a)Cash received from customers. (b)Cash paid to stockholders (dividends). (c)Cash received from issuing new common stock. (d)Cash paid to suppliers. (e)Cash paid to purchase a new office building.

a. operating activities b. financing activities c. financing activities d. operating activities e. investing activities

Indicate in which part of the statement of cash flows each item would appear: operating activities, investing activities, or financing activities. a. Cash received from customers. b. Cash paid to stockholders (dividends). c. Cash received from issuing new common stock. d. Cash paid to suppliers. e. Cash paid to purchase a new office building.

a. operating activities b. financing activities c. financing activities d. operating activities e. investing activities