ACC 557 Quiz 1 chapter 1 Solution
Owners of business firms are the only people who need accounting information.
Ans:LO1 BT: K Difficulty: Easy TOT: .5 min. AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting
(TCO F) The company uses the indirect method for the statement of cash flow. How would an
increase in the inventory balance be reported?
Cash outflow from investing activities
1. Question :
(TCO D) Lease methods of accounting are
operating and sales leaseback methods.
operating and capital lease methods.
leveraged and operating lease methods.
None of the above
Kingdom Leasing Inc. agrees to lease jousting equipment to Knight Inc. on
Jan 1,2012. They agree on the following terms:
1) The normal selling price of the jousting equipment is $325000 and the
cost of the asset to Kingdom Leasing Inc. was $250000.