A100+Midterm%2BFall%2B2%2B2010

C increases the net carrying value of the fixed asset

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Unformatted text preview: e by the amount of the gross profit. d The sale is reported as an operating cash inflow when the sale is made. e None of the above 16 Depreciation expense a is an operating cash outflow. b reduces gross profit. c increases the net carrying value of the fixed asset. d is a financing cash outflow. e None of the above 17 If current assets increased from $11,000 at the beginning of the year to 16,000 at the end of the year, and current liabilities decreased from $10,000 at the beginning of the year to $5,000 at the end of the year, what is the company's approximate current ratio if the company's net income was $26,000 during the most current period? a 1.8 b 3.2 c 2.36 d 5.5 e 5.2 18 If the accountant mistakenly took twice as much depreciation as should have been taken, the result would be a overstated assets and overstated retained earnings. b understated assets and understated stockholders' equity. c overstated assets and understated liabilities. d understated assets and overstated net income....
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This note was uploaded on 09/11/2012 for the course BUS 100 taught by Professor Mo during the Spring '08 term at Indiana.

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