A100+Midterm%2BSpring%2BI%2C%2B2010

A the net amount of the equipment at december 31 2009

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Unformatted text preview: are true. 4 If depreciation taken during 2009 was $2,000 and the original cost of the asset was $14,000 when it was purchased on October 1, 2007, which of the following is true? a The net amount of the equipment at December 31, 2009 was $8,500. b The amount directly to the right of the equipment account on the balance sheet is $9,500. c The investing cash flows are reduced by $2,000 in 2009. d The operating cash flows are reduced by $2,000 in 2009. e None of the above are true. 5 The Practical Company had an ending accounts receivable balance of $14,000 at December 31, 2009. During 2009 the company had revenue of $124,000, and total cash received of $120,000. Practical also had an ending balance in unearned revenue of $2,000, and no beginning balance in unearned revenue. What was Practical's beginning balance in accounts receivable? a $10,000 b $8,000 c $6,000 d $12,000 e None of the above 6 Which of the following is the correct classification on the statement of cash flows? a Financing activities include cash flows for stock issuances, dividends paid, notes borrowed from banks, and notes and interest repaid to banks. b Investing activities include cash flows from the purchase and sale of land, buildings, and equipment, and the depreciation taken on buildings and equipment. c Operating activities include cash inflows and outflows from operating activities as well as cash paid out for interest paid. d Operating activities include cash inflows and outflows from operating activities as well as cash paid out for depreciation. e Investing activities include cash outflows from the purchase of land, buildings, and equipment as well as the gain or loss on the sale of any of these assets. 7 Bloocher Company pays its employees each Friday a total of $10,000 for work done during the week. Since the company is preparing monthly financial statements and the month ends on Tuesday, $4,000 of salary expense will have been earned by the employees but not yet paid by the company at the end of the month. Which of the following correctly...
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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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