Mid Term

1. Question : (TCO A, B, C) Which type of corporate information is not available to investors?

Student Answer: dividend history

forecast of cash needs for the upcoming year

cash provided by investing activities

beginning cash balance

Instructor Explanation: chapter 1 page 13

Points Received: 3 of 3

Comments:

2. Question : (TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called

Student Answer: accounts payable.

notes receivable.

taxes payable.

bonds payable.

Instructor Explanation: chapter 1 page 10

Points Received: 3 of 3

Comments:

3. Question : (TCO C) The statement of cash flows would disclose the payment of a dividend

Student Answer: nowhere on the statement.

in the operating activities section.

in the investing activities section.

in the financing activities section.

Instructor Explanation: chapter 1 page 15

Points Received: 3 of 3

Comments:

4. Question : (TCO A) The best definition of assets is, the

Student Answer: cash owned by the company.

collections of resources belonging to the company and the claims on these resources.

Owners' investment in the business.

resources belonging to a company that offer future benefits to the company.

Instructor Explanation: chapter 1 page 10

Points Received: 3 of 3

Comments:

5. Question : (TCO C) Jamie Company recorded the following cash transactions for the year:

Paid $70,000 for salaries.

Paid $20,000 to purchase office equipment.

Paid $6,000 for utilities.

Paid $7,000 in dividends.

Collected $130,000 from customers.

What was Jamie's net cash provided by operating activities?

Student Answer: $47,000

$54,000

$27,000

$33,000

Instructor Explanation: $130,000 - 70,000 - 6,000 = $54,000

Points Received: 3 of 3

Comments:

6. Question :...