Part I: Multiple Choice (40 Points)
Which of the following are profit measures reported on a multiple step income statement?
A) Income from operations
B) Pretax income
C) Gross profit
D) Only A and B are reported.
All of the above are reported.
What are the categories of cash flows that appear on a statement of cash flows?
A) Cash flows from investing, financing, and service activities.
B) Cash flows from investing, financing, and saving activities.
C) Cash flows from operating, investing, and financing activities.
D) Cash flows from operating, production, and investing activities.
None of the above is correct.
Abrahams Corporation reported the following amounts at the end of the first year of operations,
December 31, 20A: contributed capital $50,000; sales revenue $200,000; total assets $150,000; $10,000
dividends; and total liabilities $80,000.
Retained earnings and total expenses would be
A) retained earnings $20,000 and expenses $170,000
B) retained earnings $30,000 and expenses $160,000.
C) retained earnings $70,000 and expenses $120,000.
D) retained earnings $80,000 and expenses $110,000
None of the above.
Assets for a particular business might include
A) cash, accounts payable, and notes payable.
B) cash, retained earnings, and accounts receivable.
C) cash, accounts receivable, and inventory.
D) inventories, property and equipment, and contributed capital.