- Description
ACC 291 Week 5 Practice Quiz
Practice Question 10
Which of the following is an operating activity?
| Payment of a cash dividend |
| Sale of equipment |
| Payment of interest |
| Making a loan to another entity |
Practice Question 15
Which is an example of a cash flow from an investing activity?
| Payment of cash to repurchase outstanding capital stock |
| Receipt of cash from the sale of equipment |
| Payment of cash to suppliers for inventory |
| Receipt of cash from the issuance of bonds payable |
Practice Question 20
Hanover, Inc. purchased land through the issuance of long-term bonds. How is this reported on the statement of cash flows?
| Operating activity |
| Significant noncash investing and financing activity that merits disclosure |
| Investing inflow |
| Financing outflow |
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?
| Gain on sale of equipment |
| Depreciation expense |
| Decrease in accounts payable |
| Increase in accounts receivable |
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 |
| Cash flows from investing activities |
| Cash flows from financing activities |
| Noncash investing and 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?
| Cash payments to suppliers |
| Depreciation expense |
| 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?
| Current year net income amount |
| Base-year amount |
| Current year stockholders’ equity amount |
| Current year total assets 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% |
| Trend analysis |
| Horizontal analysis |
| Vertical analysis |
| Ratio 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?
| 32.0% |
| Cannot be determined from the data given |
| 75.0% |
| 55.1% |
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.
| 4.3% |
| 8.9% |
| 11.7% |
| 8.4% |