Accounting
Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows?
Which of the following items would not be included as a cash flow from operating activities in a statement of cash flows? A. Collections from customers. B. Interest on note payable. C. Purchase of equipment. D. Purchase of inventory. C. Purchase of equipment.
Selected information from the accounting records of Dunn’s Auto Dealers is as follows:
Selected information from the accounting records of Dunn’s Auto Dealers is as follows: Cost of furniture purchased for cash$8,000Proceeds from bank loan 100,000Repayment of bank loan (includes interest of $4,000) 44,000Proceeds from sale of equipment 5,000Cash collected from customers 320,000Purchase of stock of another corporation as an investment 20,000Common stock issued for cash 200,000 In […]
Selected information from the accounting records of Dunn’s Auto Dealers is as follows:
Selected information from the accounting records of Dunn’s Auto Dealers is as follows: Cost of furniture purchased for cash$8,000Proceeds from bank loan 100,000Repayment of bank loan (includes interest of $4,000) 44,000Proceeds from sale of equipment 5,000Cash collected from customers 320,000Purchase of stock of another corporation as an investment 20,000Common stock issued for cash 200,000 In […]
Laser World’s income statement reported total revenues of $850,000 and total expenses (including $40,000 depreciation) of $720,000. The balance sheet reported the following: Accounts Receivable—beginning balance, $50,000 and ending balance, $60,000; Accounts Payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only on this information, the net cash flows from operating activities were:
Laser World’s income statement reported total revenues of $850,000 and total expenses (including $40,000 depreciation) of $720,000. The balance sheet reported the following: Accounts Receivable—beginning balance, $50,000 and ending balance, $60,000; Accounts Payable—beginning balance, $22,000 and ending balance, $28,000. Therefore, based only on this information, the net cash flows from operating activities were: A. $126,000 […]
In the current year, a company has a gain of $50,000. The company’s accountant is deciding whether to report this gain as part of nonoperating income in the income statement or as part of other comprehensive income. Which of the following is true?
In the current year, a company has a gain of $50,000. The company’s accountant is deciding whether to report this gain as part of nonoperating income in the income statement or as part of other comprehensive income. Which of the following is true? A. Total shareholders’ equity will be greater if the gain is reported […]
The Stibbe Construction Company switched from the completed contract method to the percentage-of-completion method of accounting for its long-term construction contracts. This is an example of:
The Stibbe Construction Company switched from the completed contract method to the percentage-of-completion method of accounting for its long-term construction contracts. This is an example of: A. A change in accounting principle. B. A change in accounting estimate. C. An unusual item. D. A discontinued operation. A. A change in accounting principle.
Earnings per share should be reported for each of the following income statement captions except:
Earnings per share should be reported for each of the following income statement captions except: A. Income from continuing operations. B. Discontinued operations. C. Operating income. D. Net income. C. Operating income.
Which of the following describes the modified retrospective approach to implementing a change in accounting principle?
Which of the following describes the modified retrospective approach to implementing a change in accounting principle? A. The new standard is applied only to the current period and all future periods, and the cumulative effects of prior periods is shown as an adjustment to retained earnings. B. The new standard is applied to all periods […]
The Compton Press Company reported income before taxes of $250,000. This amount included a $50,000 loss on discontinued operation. The amount reported as income from continuing operations, assuming a tax rate of 25%, is:
The Compton Press Company reported income before taxes of $250,000. This amount included a $50,000 loss on discontinued operation. The amount reported as income from continuing operations, assuming a tax rate of 25%, is: A. $250,000 B. $225,000 C. $75,000 D. $300,000 B. $225,000
On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the entity. By the end of the year, the assets have not been sold. The book value of those assets equals $1,100,000, and the company estimates their fair value to be $850,000. The component generated operating income for the year of $450,000. In its income statement for the year ended December 31, 20X1, for what amount would the company report income from operations of a discontinued component (ignoring taxes).
On May 31, 20X1, the Arlene Corporation adopted a plan to sell its cosmetics line of business, considered a component of the entity. By the end of the year, the assets have not been sold. The book value of those assets equals $1,100,000, and the company estimates their fair value to be $850,000. The component […]