ACC 291 Week 5 Practice Quiz
Practice Question 10
Which of the following is an operating activity?
- Sale of equipment
- Making a loan to another entity
- Payment of interest
- Payment of a cash dividend
Practice Question 15
Which is an example of a cash flow from an investing activity?
- Payment of cash to suppliers for inventory
- Receipt of cash from the sale of equipment
- Receipt of cash from the issuance of bonds payable
- Payment of cash to repurchase outstanding capital stock
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Practice Question 20
Hanover, Inc. purchased land through the issuance of long-term bonds. How is this reported on the statement of cash flows?
- Significant noncash investing and financing activity that merits disclosure
- Financing outflow
- Investing inflow
- Operating activity
Practice Question 25
Under the indirect method of preparing the statement of cash flows, which of the following is added to net income in the operating activities section?
- Increase in accounts receivable
- Decrease in accounts payable
- Gain on sale of equipment
- Depreciation expense
Practice Question 30
In what section of the statement of cash flows will the issuance of bonds payable to acquire a building be reported?
- Cash flows from operating activities
- Noncash investing and financing activities
- Cash flows from investing activities
- Cash flows from financing activities
Practice Question 45
Which of the following items is reported in the operating activities section of a statement of cash flows prepared using the direct method?
- Depreciation expense
- Cash payments to suppliers
- Loss on sale of building
- Increase in accounts receivable
Practice Question 20
In horizontal analysis of a balance sheet, of what amount is each item expressed as a percentage?
- Base-year amount
- Current year net income amount
- Current year total assets amount
- Current year stockholders’ equity amount
Practice Question 23
 The following schedule is a display of what type of analysis?
| Amount | Percent | |||
| Current assets | $200,000 | 25% | ||
| Property, plant, and equipment | 600,000 | 75% | ||
| Total assets | $800,000 | 100% |
- Vertical analysis
- Ratio analysis
- Horizontal analysis
- Trend analysis
Practice Question 25
Ceradyne, Inc. presented the following data for a company:
| Current liabilities | $360 | |
| Long-term debt | 480 | |
| Common stock | 640 | |
| Retained earnings | 520 | |
| Total liabilities & stockholders’ equity | $2,000 |
How would common stock appear on a common size balance sheet using vertical analysis?
- 0%
- 1%
- 0%
- Cannot be determined from the data given
Practice Question 44
Use the following financial statement information as of the end of each year to answer this question.
| 2017 | 2016 | |
| Inventory | $54,000 | $48,000 |
| Current assets | 81,000 | 106,000 |
| Total assets | 392,000 | 336,000 |
| Current liabilities | 27,000 | 36,000 |
| Total liabilities | 102,000 | 88,000 |
| Total stockholders’ equity | 290,000 | 248,000 |
| Preferred stock | 10,000 | 10,000 |
| Net sales | 784,000 | 697,000 |
| Cost of goods sold | 306,000 | 277,000 |
| Net income | 34,000 | 90,000 |
| Tax expense | 22,000 | 18,000 |
| Interest expense | 12,000 | 12,000 |
| Dividends paid to preferred stockholders | 2,000 | 2,000 |
| Dividends paid to common shareholders | 1,000 | 1,000 |
Compute the profit margin for 2017.
- 9%
- 3%
- 4%
- 7%
Course: ACC291 Principles Of Accounting II
School: University of Phoenix
- 16/02/2018
- 14