For each of the following, choose the letter that corresponds to the
answer on the computer input sheet
Each correct answer is worth 1.5 marks.
1. Brooks Company had the following cash transactions: sold equipment for $100,000,
purchased a building for $80,000, sold long-term investments for $20,000 and repaid a
note payable for $25,000 plus $1,500 of interest. What was the net cash flow from
activities (parentheses indicate an outflow)?
2. Intangible assets include which of the following?
Leaseholds, patents, and copyrights.
Accounts receivable, franchises, and trademarks.
Copyrights, licenses, and land.
Natural resources, patents, and trademarks.
3. On March 1, Chapine Company purchased a new stamping machine for $5,000. Chapine
paid cash for the machine. Other costs associated with the machine were: transportation
costs, $300; sales tax paid, $200; and installation cost, $100. What cost was recorded for
4. Residual value can be defined as:
of the amount paid to acquire a tangible operational asset.
The book value of an asset.
The amount expected to be recovered when an asset is disposed of at the end of its
estimated useful life.
The current value of an asset as of the balance sheet date.