a. Adjusted trial balance b. Comparative balance sheets c. Current income statement d. Additional information 4. The primary purpose of the statement of cash flows is to a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income.
D. rejected or abandoned. 2. The value of a proposed capital budgeting project depends on the: A. total cash flows produced. B. incremental cash flows produced. C. accounting profits produced.
If subsequently resold for a sum larger than the cost, Alcoa should report for the sale of the treasury stock by debiting cash for the sale cost, crediting treasury stock for cost, and crediting additional paid-in capital from repurchased stock for the excess of the selling price over the cost. Adversely, if the stock is retired, Alcoa
| On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period. | B | the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period. | C | the amount of cost placed into production during the period. | D | the amount of cost of goods completed during the current year whether they were started before or during the current year. | 4.
If it did, how did the firm invest its excess cash? 6. If not, what were the sources of cash the firm used to pay for the capital expenditures and/or dividends? Sources of cash used to pay for capital expenditures and/or dividends are proceeds from long-term debt and short term borrowings. 7.
common valuation methods are: Historical Cost/Historical Proceeds Method. For an asset: the amount of cash, or its equivalent, paid to acquire the item, commonly adjusted for depreciation or other allocation. For a liability: the amount of cash, or its equivalent, received when the obligation was incurred—sometimes adjusted for amortization or other allocations. Current Market Value Method. The amount of cash, or its equivalent, that could be obtained by selling an asset in an orderly liquidation.
c. U.S. Treasury bills. d. Banker’s acceptances. e. Money market mutual funds27. Money markets are markets for
There are two approaches for presenting the operating activities direst method and indirect method. Direct method reports the components of cash flow from operating activities as gross receipts and gross payments. The indirect method starts with the net income from the income statement and then eliminates noncash items to arrive at net cash inflow and outflow from operating activities. Investing activities include (a) purchasing and disposing of investments and productive long-lived assets using cash, (b) lending money, and collecting the loans. Cash flow from investing activities is cash inflows and outflows related to the purchase and disposal of long-lived productive assets and investments in the securities of other companies.
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Examples of Questions on Ratio Analysis A: Multiple Choice Questions 1. Which of the following is considered a profitability measure? a. Days sales in inventory b. Fixed asset turnover c. Price-earnings ratio d. Cash coverage ratio e. Return on Assets 2.