Question 1

Which of the following items appears in the investing activities section of the statement of cash flows?

Accepted Answer

A)   Cash inflow from interest revenue.
B)   Cash inflow from the issuance of common stock.
C)   Cash outflow for the payment of dividends.
D)   Cash outflow for the purchase of land.E) A) and D)
F) A) and C)

Question 2

Which of the following represents effects of an asset use transaction on a company's financial statements?

Accepted Answer

A)   Option A
B)   Option B
C)   Option C
D)   Option DE) B) and C)
F) A) and C)

Question 3

Expenses are shown on the:

Accepted Answer

A)   income statement
B)   balance sheet
C)   statement of changes in stockholders' equity
D)   the income statement and statement of changes in stockholders' equityE) C) and D)
F) B) and C)

Question 4

At the end of Year 2, retained earnings for the Baker Company was $3,500. Revenue earned by the company in Year 2 was $1,500, expenses paid during the period were $800, and dividends paid during the period were $500. Based on this information alone, what was the amount of retained earnings at the beginning of Year 2?

Accepted Answer

A)   $3,300
B)   $3,700
C)   $2,800
D)   $3,800E) All of the above
F) C) and D)

Exam 1: An Introduction to Accounting

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Which of the following represents effects of an asset use transaction on a company's financial statements?

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Expenses are shown on the:

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Which of the following items appears in the investing activities section of the statement of cash flows?

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Exam 1: An Introduction to Accounting

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Which of the following represents effects of an asset use transaction on a company's financial statements?

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Expenses are shown on the:

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Which of the following items appears in the investing activities section of the statement of cash flows?

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Correct Answer
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Correct Answer
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