ACCT 2103 - ACCT 2103 Practice Exam #3 Name _ 1. The...

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ACCT 2103 Practice Exam #3 Name __________________________________ 1. The issuance of bonds is classified in the statement of cash flows as a(n): Financing activity. 2. On September 1, 2010, Daylight Donuts signed an $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2011. Daylight Donuts should report interest payable at December 31, 2010, in the amount of: $3,000 3. Interest expense on bonds payable is calculated as: . Carrying value times the market interest rate. 4. Which of the following leases is essentially the purchase of an asset with debt financing? a capital lease. 5. Which of the following is added to net income as an adjustment under the indirect method of preparing the statement of cash flows? loss on the sale of equipment 6. Which of the following statements about treasury stock transactions is correct ? A contra equity account is debited when treasury stock is purchased. . 7. Under what section of the Statement of Cash Flows would you classify the purchase of land by issuing debt? Noncash activity
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8. All classifications on the Balance Sheet have a general relationship with sections identified on the Statement of Cash Flows. Indicate which relationships are correctly identified in the table below. B. All five are correct 9. Allen Company's income statement reported total revenues, $850,000 and total expenses (including $40,000 depreciation) of $720,000. The balance sheet reported the following: accounts receivable—beginning balance, $50,000 and ending balance, $40,000; accounts
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This note was uploaded on 10/10/2011 for the course ACCT 2103 taught by Professor Burnett during the Spring '08 term at Oklahoma State.

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ACCT 2103 - ACCT 2103 Practice Exam #3 Name _ 1. The...

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