1.A machine with a cost of $146,000 and accumulated depreciation of $101,000 is sold for $58,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:
- $13,000
- $45,000
- $58,000
- Zero. This is a financing activity.
- Zero. This is an operating activity.
2.Becker Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Becker's statement of cash flows?
- In investing activities as a use of funds.
- In financing activities as a use of funds.
- In operating activities as a source of funds.
- In financing activities as a source of funds.
- In investing activities as a source of funds.
3.The indirect method for the preparion of the operating activites section of the statement of cash flows:
- Is required if the company is a merchandiser
- Must not be used in all circumstances
- Separately lists each major item of operating cash payments
- Separately lists each major item of operating cash receipts
- Reports net income and then adjust it for items necessary to determine net cash provided or used by operating activities
4.One of several ratios that reflects solvency includes the:
- Days' sales in inventory
- Times interest earned ratio
- Total asses turnover
- Acid-test ratio
- Current ratio
5.Common size statement:
- Show the dollar amount of change for financial statement items
- Reveal patterns in data across successive periods
- Compare financial statements over time
- Reveal changes in the relative importance of each financial statement item
- Do not emphasize the relative importance of each item