18.Leah Company's equipment account increased $400,000 during the period; the related accumulated depreciation increased $30,000. New equipment was purchased at a cost of $700,000 and used equipment was sold at a loss of $20,000. Depreciation expense was $100,000. Proceeds from the sale of the used equipment were:
$210,000.
$280,000.
$250,000.
$320,000.
19.Which of the following would not be included in the operating activities section of a statement of cash flows?
Cash inflows from returns on equity securities (i.e., dividends).
Cash inflows from returns on loans (i.e., interest).
Cash outflows to governments for taxes.
Cash outflows to reacquire treasury stock.
20.The concept of significant influence must be satisfied before which accounting method can be used by an investor?
All of these answers are correct.
Equity.
Cost.
Consolidated financial statements.
21.Which of the following pairs of terms in the area of financial statement analysis are synonymous?
Horizontal - Ratio
Horizontal - Trend
Ratio - Trend
Vertical - Ratio