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# test7_ch14-15 - Achievement Test 7 Chapters 14-15 Financial...

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Achievement Test 7 Chapters 14-15 Name ___________________________ Financial Accounting, Fifth Edition Instructor ________________________ Section # _________ Date __________ Part I II III IV V Total Points 32 12 20 24 12 100 Score PART I — MULTIPLE CHOICE (32 points) Instructions Designate the best answer for each of the following questions. ____ 1. The inventory turnover ratio is computed by dividing the average inventories into a. net sales. b. total assets. c. cost of goods sold. d. stockholders’ equity. ____ 2. In performing a vertical analysis, the base for prepaid expenses is ____ 3. Which one of the following transactions does not affect cash? _____ 4. The purchase of office equipment for cash _____ 5. Which of the following is a financing activity? a. purchase of treasury stock. b. purchase of trading securities. c. purchase of inventory. d. purchase of equipment.

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Test Bank for Financial Accounting, Fifth Edition ____ 6. If a loss of \$13,000 is incurred in selling (for cash) equipment having a book value of \$45,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is _____ 7. Roses Paint reported sales of \$350,000, total assets of \$150,000, total stockholders' equity of \$60,000, current assets of \$50,000, current liabilities of \$30,000, and cash of \$15,000. In a vertical analysis of the balance sheet, cash would be shown as ____ 8. Common size analysis is an alternative term for ____ 9. The purchase of an office building by issuing long-term notes payable should be reported as a a. cash outflow in the financing section of the statement of cash flows. b. cash outflow in the investing section of the statement of cash flows. c. cash outflow in the operating section of the statement of cash flows. d. noncash investing and financing activity. ____
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test7_ch14-15 - Achievement Test 7 Chapters 14-15 Financial...

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