Exam 16: Basic Accounting Concepts, Techniques, and Conventions

A gain on the sale of a fixed asset is reported on the statement of cash flows:

The difference between a single and multiple- step income statement is that:

Bing Company reported sales of $180,000, an increase in accounts receivable of $15,000, and a decrease in cash of $20,000. was received from Bing Company's customers.

Listed below are increases (decreases) in selected accounts of Leonardo Company. Accounts receivable \ 20,000 Inventory (40,000) Accounts p ay able 68,000 Wages p ayable (21,000) Net income for Leonardo Company was $42,000. The net cash provided by operating activities was:

When using the direct method, depreciation is added to net income.

Navidad Company's income statement included income tax expense of $18,000. Income tax payable at the beginning of the current year was $1,000. Income tax payable at the end of the current year was $4,000. Cash paid for taxes was:

An organization's debts due after one year

Advance payments to suppliers

Earnings per share = net income / average number of common and preferred shares outstanding during the year.

Investments made by lessee (tenant) that it cannot remove from the premises when the lease expires

The liabilities of Clare Company are listed below: Accounts payable \ 20,000 First Mortgage bonds payable \ 100,000 Debentures payable \ 80,000 Clare Company liquidated its assets, receiving $150,000 cash. The debenture holders will receive if the debentures are unsubordinated.

Depreciation method that allocates the same cost to each year of an asset's useful life

When reconciling net income to net cash provided by operating activities, a(n) is a deduction from net income.

Goodwill is a tangible asset.

Amounts owed for wages, salaries, and interest

The income statement and comparative balance sheets for Big Valley Company are presented below. Construct a statement of cash flows using the indirect method. No land was sold in 20X6, and any land purchased was acquired by issuing bonds payable. A fixed asset was sold for $4,100.

On the books of a corporation, the total amount owed to the company by its customers

Referring to Tables 16- 1 and 16- 2, the cash paid out for dividends by Silver Company in 20X6 was:

Referring to Tables 16- 1 and 16- 2, the cash collected from the issuance of stock by Silver Company in 20X6 was:

Given the following information for Kings Company, prepare the operating activities section on the statement of cash flows using the direct method as of December 31, 20X5. Sales \8 91,000 Less expenses: Cost of goods sold \ 662,000 Depreciation expens e 16,000 Amortixation expense 3,000 Wage expense 91,000 Rent expense 4,000 Loss on sale of fixed asset 2,000 Interest expense 13,000 Income tax expense 829,000 Net income \6 2,000 Increases (decreases) in selected accounts are indicated below: Cash \2 ,800 Accounts pay able \2 ,400 Accounts 9,200 Wages payable (700) receivable Inventory (5,900) Taxes payable 1,100 Prep aid rent (300)