ACCT 212 Week 7 Quiz (Summer 2021)v1

Question: The advantages of a corporation … to a sole proprietorship or partnership include: Question: Preferred stock is called … because it usually has two preferences over common stock. These preferences relate to: Question: When a company issues 35,000 shares of $3 par value common stock for $30 per share, the journal entry for this issuance would include: Question: Environmental Designs issues 5,000 shares of its $1 par value common stock at $18 per share. (1) Record the issuance of the stock. (2) Record the issuance of the stock assuming it is no-par value stock. (If no entry is required for a particular transaction/event, select “No Journal Entry Required” in the first account) Question: The issuance of a note payable is … in the statement of cash flows as a(n): Question: The sale of an intangible asset for cash is … in the statement of cash flows as a(n): Question: The net cash flows from operating, investing, and financing activities will equal: Question: Depreciation expense is … to net income in the statement of cash flows under the indirect method because: Question: Kela Corporation reports net income of $480,000 that includes depreciation expense of $81,000. Also, cash of $52,000 was borrowed on a 4-year note payable. Based on this data, total cash inflows from operating activities are: Question: Lense Laboratories’ net income was $280,000. Given the account information below, what is the net cash flows from operating activities for Lense