Econ 4 final questions

Econ 4 final questions - a. Current Assets section b. Long...

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Danny Smith ECON 4, HW #3 #209 1. An example of a cash flow from an investing activity is: a. Receipt of cash from the sale of equipment b. Receipt of cash from the sale of stock c. Payment of cash for dividends d. Payment of cash to acquire treasury stock Answer = A, as investing activities include receipts from the sale of noncurrent assets, such as equipment. Answers B, C, D are cash flows from financing activities. 2. If a corporation reacquires its own stock, the stock is listed on the balance sheet in the:
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Unformatted text preview: a. Current Assets section b. Long Term Liabilities section c. Stockholders Equity Section d. Investment Section Answer = C, as reacquired stock also known as treasury stock should be listed in the Stockholders Equity section. The price paid for the treasury stock is deducted from the total of all the stockholders equity accounts. Reference: The above questions were inspired by the materials presented in the book Accounting by Warren, Reeve, and Fess 19 th Edition....
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This note was uploaded on 09/13/2011 for the course ECON 4 taught by Professor Willoughby during the Spring '08 term at UCSD.

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Econ 4 final questions - a. Current Assets section b. Long...

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