Review Test Submission 4.docx

Review Test Submission 4.docx - Review Test Submission Test...

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Review Test Submission: Test Four Content User BRUCE COOPERJR Course 201620-Prin of Financial Accounting-22811 Test Test Four Started 4/13/16 12:40 PM Submitted 4/13/16 3:37 PM Status Completed Attempt Score 82 out of 100 points Time Elapsed 2 hours, 57 minutes out of 3 hours Results Displayed All Answers, Submitted Answers, Correct Answers, Feedback Question 1 2 out of 2 points Restrictions on retained earnings ________. Selected Answer: are usually reported in the notes to the financial statements Answers: are reported on the cash flow statement. are usually reported in the notes to the financial statements are reported on the income statement are designed to maximize dividends paid to shareholders Question 2 2 out of 2 points Which of the following statements is true? Selected Answer: The indirect method begins with net income and adjusts it to net operating cash flows. Answers: The indirect method includes all non-cash activities, whereas the direct method includes only the cash activities. The indirect method and the direct method will produce a different amount of net cash flow from investing activities. The indirect method begins with net income and adjusts it to net operating cash flows. The direct and indirect methods include different types of cash flows in the investing activities section.
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Question 3 2 out of 2 points On the ________, cash dividends become a liability of a corporation. Selected Answer: declaration date Answers: payment date date of record end of the fiscal year declaration date Question 4 2 out of 2 points Which of the following accurately describes working capital? Selected Answer: Current assets minus current liabilities Answers: Current assets minus merchandise inventory Cost of goods sold divided by average merchandise inventory Current assets minus current liabilities Total debt minus stockholders' equity Question 5 2 out of 2 points While preparing a statement of cash flows using the indirect method, the Depreciation Expense ________. Selected Answer: is added back as an adjustment to Net Income in the operating activities section Answers: is shown as a negative cash flow in the investing activities section is added back to Purchases of Plant Assets under investing activities is shown as a negative cash flow under operating activities is added back as an adjustment to Net Income in the operating activities section Question 6 2 out of 2 points
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Peartree Inc. provides the following extracts from income statement for the year 2015: Net sales $500,000 Cost of Goods Sold (150,000) Gross profit $350,000 Calculate the gross profit percentage. Selected Answer: 70% Answers: 55% 69% 75% 70% Response Feedback: Net Sales $500,000 Cost of Goods Sold (150,000) Gross profit $350,000 Gross profit percentage* 70% Gross profit percentage = Gross profit ÷ Net sales × 100 Question 7 2 out of 2 points The price/earnings ratio indicates the ________.
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