ACC-301-Chapter-5-quiz

ACC-301-Chapter-5-quiz - ACC 301 Chapter 5 quiz Multiple...

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ACC 301 Chapter 5 quiz Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. A gain on the sale of a plant asset in the ordinary course of business should be presented in a statement of cash flows prepared using the indirect method as a. a cash inflow from investing activities. b. a cash inflow from financing activities. c. an addition to net income. d. a deduction from net income. ____ 2. In a statement of cash flows prepared using the direct method, if wages payable increased during the year, the cash paid for wages would be a. the same as salary expense. b. salary expense plus wages payable at the beginning of the year. c. salary expense plus the increase in wages payable from the beginning to the end of the year. d. salary expense less the increase in wages payable from the beginning to the end of the year. ____ 3. In a statement of cash flows, proceeds from issuing equity instruments should be classified as cash inflows from a. brokerage activities. b. financing activities. c. investing activities. d. operating activities. ____ 4. When preparing a statement of cash flows using the indirect method, the amortization of trademarks should be reported as a(n) a. increase in cash flows from investing activities. b. reduction in cash flows from investing activities. c. increase in cash flows from operating activities. d. reduction in cash flows from operating activities. ____ 5. Cash equivalents would not include short-term investments in a. money market funds. b. available-for-sale securities. c.
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This note was uploaded on 06/11/2009 for the course ACC 301 taught by Professor Pendarvis during the Spring '09 term at St. Leo.

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ACC-301-Chapter-5-quiz - ACC 301 Chapter 5 quiz Multiple...

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