ACCT 310 TEST 2 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025
The basis for classifying assets as current or noncurrent is conversion to cash within - Answers the
operating cycle or one cycle, which is longer
the stockholders` equity section is usually divided into what three parts? - Answers capital stock,
additional paid-in capital, retained earnings
if common stock was issued to acquire an $8000 machine, how would the transaction appear on the
statement of cash flows? - Answers it would not appear on the statement of cash flows but rather on a
schedule of noncash investing and finacing activities
making and collecting loans and disposing of property, plant, and equipment are - Answers investing
activities
in preparing a statement of cash flows, cash flows from operating activities - Answers can be calculated
by appropriately adding to or deducting from net income those items in the income statement that do
not affect cash
The current cash debt coverage is often used to asses - Answers liquidity
For Randolph`s Company, the following information is available:
capitalized leases $560,000
Copyrights $190,000
long-term receivables $210,000
In randolph balance sheet, intangible assets should be reported at - Answers $190,000
Lohmeyer corporation reports:
Cash provided by operating activities $320,000
Cash used by investing activities $ 110,000
Cash provided by financing activities $140,000
beginning cash balance $70,000
what is Lohmeyer ending cash balance? - Answers 420,000
during 2014 the DLD Company had a net income of $75000. In aition,selected accountung showed
following changes
Accounts recievable $3,000 increase
Accounts Payable $1,000 increase
, Building $4,000 decrease
Depreciation Expense $1,500 increase
Bonds Payable $8,000 increase
what was the amount of cash provided by operating activities? - Answers $74,500
Sauder Corporation reports the following information:
Net income $320,000
Depreciation expense $70,000
Increase in accounts receivable $30,000
Sauder should report cash provided by operating activities of - Answers $360,000
packard corporation reports the following information:
net cash provided by operating activities $285,000
Average current liabilities $150,000
Average long-term liabilities $100,000
dividends paid $60,000
Payments of debt $35,000
Packard`s free cash flow - Answers $115,000 (285,000-60,000-110,000)
In a statement of cash flows, interest payments to lenders and other creditors should be classified as
cash outflows for - Answers operating activities
Stine Corp`s trial balance reflected the following account balances at December 31, 2014
A/R (net) $19,000
trading securities $6,000
A/D equip/furniture 15,000
cash 16,000
inventory 30,000
equipment 25,000
patent 4,000
The basis for classifying assets as current or noncurrent is conversion to cash within - Answers the
operating cycle or one cycle, which is longer
the stockholders` equity section is usually divided into what three parts? - Answers capital stock,
additional paid-in capital, retained earnings
if common stock was issued to acquire an $8000 machine, how would the transaction appear on the
statement of cash flows? - Answers it would not appear on the statement of cash flows but rather on a
schedule of noncash investing and finacing activities
making and collecting loans and disposing of property, plant, and equipment are - Answers investing
activities
in preparing a statement of cash flows, cash flows from operating activities - Answers can be calculated
by appropriately adding to or deducting from net income those items in the income statement that do
not affect cash
The current cash debt coverage is often used to asses - Answers liquidity
For Randolph`s Company, the following information is available:
capitalized leases $560,000
Copyrights $190,000
long-term receivables $210,000
In randolph balance sheet, intangible assets should be reported at - Answers $190,000
Lohmeyer corporation reports:
Cash provided by operating activities $320,000
Cash used by investing activities $ 110,000
Cash provided by financing activities $140,000
beginning cash balance $70,000
what is Lohmeyer ending cash balance? - Answers 420,000
during 2014 the DLD Company had a net income of $75000. In aition,selected accountung showed
following changes
Accounts recievable $3,000 increase
Accounts Payable $1,000 increase
, Building $4,000 decrease
Depreciation Expense $1,500 increase
Bonds Payable $8,000 increase
what was the amount of cash provided by operating activities? - Answers $74,500
Sauder Corporation reports the following information:
Net income $320,000
Depreciation expense $70,000
Increase in accounts receivable $30,000
Sauder should report cash provided by operating activities of - Answers $360,000
packard corporation reports the following information:
net cash provided by operating activities $285,000
Average current liabilities $150,000
Average long-term liabilities $100,000
dividends paid $60,000
Payments of debt $35,000
Packard`s free cash flow - Answers $115,000 (285,000-60,000-110,000)
In a statement of cash flows, interest payments to lenders and other creditors should be classified as
cash outflows for - Answers operating activities
Stine Corp`s trial balance reflected the following account balances at December 31, 2014
A/R (net) $19,000
trading securities $6,000
A/D equip/furniture 15,000
cash 16,000
inventory 30,000
equipment 25,000
patent 4,000
