1. Mitchell Corporation bought equipment on January 1, 2014 .The equipment cost $180,000 and had an expected salvage value of $30,000. The life of the equipment was estimated to be 6 years. The book value of the equipment at the beginning of the third year would be
$50,000 or 180,000 or $130,000 or 150,000
2. Before a check authorization is issued, the following documents must be in agreement, except for the
purchase order or invoice or receiving report or remittance advice
3. Which of the following is not an internal control activity for cash?
surprise audits of cash on hand should be made occasionally or all cash receipts should be recorded promptly, or the number of persons who have access to cash should be limited or the functions of record keeping and maintaining custody of cash should be combined
4. The current assets of Orangatte Company are $227,500. The current liabilities are $130,000. The current ratio expressed as a proportion is
$210,000/$120,000 or 1.75:1 or .57:1 or 175%
5. Each of the following items may be classified as operating or financing activities under IFRS except
interest paid or dividends paid or dividends received or all of these answer choices may be classified as such.
6. Colie Company had an increase in inventory of $120,000. The cost of goods sold was $490,000. There was a $30,000 decrease in accounts payable from the prior period. Using the direct method of reporting cash flows from operating activities, what were Colie's cash payments to suppliers?
$580,000 or 310,000 or 640,000 or 370,000