Fi_1 - 5.0/5.0 Correct Answer(s): D 5. Which of the...

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3.  Which of the following items can be found on a firm's balance sheet under current liabilities? A)  Depreciation expenses. B)  Cost of goods sold. C)  Accrued amortization charges. D)  Accrued wages. E)  Accounts receivable. Points Earned:  5.0/5.0  Correct Answer(s): D 4.  Which of the following statements is CORRECT? A)  Dividends paid reduce the net income that is reported on a company's income statement. B)  If a company issues new long-term bonds during the current year, this will increase its reported current liabilities at the end of the year. C)  Accounts receivable are reported as a current liability on the balance sheet. D)  If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will fall. E)  If a company uses some of its bank deposits to buy short-term, highly liquid marketable securities, this will cause a decline in its current assets as shown on the balance sheet. Points Earned: 
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Unformatted text preview: 5.0/5.0 Correct Answer(s): D 5. Which of the following statements is CORRECT? A) The statement of cash flows shows where the firm's cash is located, with a listing of all banks and brokerage houses where cash is on deposit. B) The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock. C) The statement of cash flows for 2005 shows how much the firm's cash (the total of currency, bank deposits, and short-term liquid securities, or cash equivalents) increased or decreased during 2005. D) The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital. E) The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets. Points Earned: 5.0/5.0 Correct Answer(s): C...
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Fi_1 - 5.0/5.0 Correct Answer(s): D 5. Which of the...

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