Accounting Exam

1. (TCO A, B, C) Which type of corporate information is not available to investors? (Points : 3) |

Dividend history

Forecast of cash needs for the upcoming year

Cash provided by investing activities

Beginning cash balance

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2. (TCO C) Borrowing money is an example of a(n): (Points : 3) |

delivering activity.

financing activity.

investing activity.

operating activity.

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

nowhere on the statement.

in the operating activities section.

in the investing activities section.

in the financing activities section.

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4. (TCO A) The best definition of assets is, the (Points : 3) |

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.

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5. (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? (Points : 3) |

$47,000

$54,000

$27,000

$33,000

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6. (TCO A) On a classified balance sheet, prepaid insurance is classified as: (Points : 3) |

an intangible asset.

property, plant, and equipment.

a current asset.

a long-term investment.

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7. (TCO A) An intangible asset: (Points : 3) |

may have the capacity to earn revenue for its owner.

is worthless because it has no physical substance.

is converted into a tangible asset during the operating cycle.

cannot be reported on the balance sheet because it lacks physical substance.

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8. (TCO A) These are selected account balances on December 31, 2010.

-Land (location of the corporation's office building) $50,000

-Land (held for future use) 75,000...