ACCT105 Week 5 Quiz SCORE 100 PERCENT

Part 1 of 1 - 100.0/ 100.0 Points

Question 1 of 10
10.0/ 10.0 Points
A corporation may elect not to prepare a statement of cash flows.



A. True

B. False






Question 2 of 10
10.0/ 10.0 Points
The collection of accounts receivable is a financing activity.



A. True

B. False






Question 3 of 10
10.0/ 10.0 Points
Capital stock issued as a stock dividend is reported in a statement of cash flows.



A. True

B. False






Question 4 of 10
10.0/ 10.0 Points
If accounts receivable increased from $12,000 to $15,000 during the year and if sales amounted to $100,000 for the year, cash receipts from customers amounted to $103,000.



A. True

B. False






Question 5 of 10
10.0/ 10.0 Points
The former statement of changes in financial position presented information on the flow of financial resources into and out of a business.



A. True
B. False






Question 6 of 10
10.0/ 10.0 Points
If capital stock is split three for one, this transaction is reported on a statement of cash flows.



A. True

B. False



Question 7 of 10
10.0/ 10.0 Points
Paid cash for office supplies, $9,000. What is the effect on working capital, the current ratio, and the acid-test ratio? Assume the current ratio is 1:1 before this transaction occurred.

•
A. Increase working capital and current ratio, decrease acid-test ratio.
•
B. No effect on all three items.
•
C. No effect on working capital and current ratio, decrease acid-test ratio.
•
D. Decrease all three items.




Question 8 of 10
10.0/ 10.0 Points
What is the current ratio for the following data? Cash - $34,000; marketable securities - $16,000; accounts and notes receivable, net - $46,000; merchandise inventory - $61,000; prepaid expenses - $3,000; accounts and notes payable, short term - $64,000; accrued liabilities - $16,000.

•
A. 1:2
•
B. 2:1
•
C. 1.2:1
•
D. 3:1
•
E. 4:1




Question 9 of 10
10.0/ 10.0 Points
The indirect method of computing cash flows from operating activities adjusts net income rather than each income statement item to a cash basis.



A. True
B. False






Question 10 of 10
10.0/ 10.0 Points
Express operating expenses as a common-size percentage using the following data. Sales - $45,000; cost of goods sold - $29,340; gross profit from sales - $15,660; operating expenses - $10,800; net income - $4,860.

•
A. 69 percent
•
B. 24 percent
•
C. 28 percent
•
D. 2.22 percent