- 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% |