accountinh test 2

accountinh test 2 - 1 On a balance sheet assets are listed...

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1. On a balance sheet, assets are listed in the order of a. dollar amount (largest first). b. date of acquisition (earliest first). c. ease of conversion to cash. d. importance to the operation of the business. 2. On the statement of cash flows, a company would report the purchase of machinery as cash used in a. operating activities. b. financing activities. c. purchasing activities. d. investing activities . 3. The two categories of stockholders' equity usually found on the balance sheet of a corporation are a. contributed capital and long-term liabilities. b. contributed capital and property, plant, and equipment. c. retained earnings and notes payable. d. contributed capital and retained earnings. 4. Most businesses earn revenues a. when they collect accounts receivable. b. through sales of goods or services to customers . c. by borrowing money from a bank. d. by selling shares of stock to shareholders. 5. 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 operating, production, and internal activities. c. cash flows from financing, production, and growth activities. d. cash flows from operating, investing, and financing activities. 6. The amount of rent expense reported on the income statement is a. the amount of cash paid for rent in the current period. b. the amount of cash paid for rent in the current period less any unpaid rent at the end of the period. c. the amount of rent used up (incurred) in the current period to help generate revenue. d. an increase in net income. 7. If you wanted to know what accounting rules a company follows related to its inventory, where would you look? a. the balance sheet. b. the income statement. c. the notes to the financial statements . d. the headings to the financial statements.
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8. What financial statement would you look at to determine the total expenses of a business? a. income statement. b. statement of retained earnings. c. statement of cash flows. d. balance sheet. 9. Abrahams Corporation reported the following amounts at the end of the first year of operations, December 31, 2003: contributed capital $50,000; sales revenue $200,000; total assets $150,000; $10,000 dividends; and total liabilities $80,000. Retained
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This note was uploaded on 10/12/2011 for the course ECONOMICS 210 taught by Professor Radding during the Spring '11 term at BU.

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accountinh test 2 - 1 On a balance sheet assets are listed...

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