ACC 356 Exam 2 Review Questions And Answers With Latest Solutions
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Course
ACC 356
Institution
ACC 356
ACC 356 Exam 2 Review Questions And Answers With Latest Solutions
The balance sheet is useful for analyzing all of the following except ANS USEFUL:
-liquidity
-solvency
-financial flexibility
NOT USEFUL:
-profitability
one criticism not normally aimed at a balance sheet prepared using cur...
ACC 356 Exam 2 Review Questions And Answers
With Latest Solutions
The balance sheet is useful for analyzing all of the following except ANS USEFUL:
-liquidity
-solvency
-financial flexibility
NOT USEFUL:
-profitability
one criticism not normally aimed at a balance sheet prepared using current accounting and reporting standards is
ANS failure to reflect current value information
the statement of cash flows reports all of the following except ANS DOES REPORT:
-the net change in cash for the period
-the cash effects of operations during the period
-investing transactions
DOES NOT REPORT:
-the free cash flows generated during the period
which of the following events will appear in the cash flows from financing activities section? ANS cash
purchase of treasury stock
in preparing a statement of cash flows, cash flows from operating activities ANS can be calculated by
appropriately adding to or deducting from net income those items in the income statement that do not affect cash.
Keisler Corporation reports:
Cash provided by operating activities $280,000
Cash used by investing activities 110,000
Cash provided by financing activities 140,000
Beginning cash balance 90,000
What is Keisler's ending cash balance? ANS 90+280-110+140= $400,000
, Jon has just received information that there were increases in both accounts payable and accounts receivable for
$12,000 and $15,000, respectively. The net income is $230,000. What is the net cash provided by operating
activities? ANS 230+12-15= $227,000
Which of the following formulas are used to calculate the net assets of a business? ANS total assets minus total
liabilities
Jake Stratta is an investor who is interested in purchasing a large block of shares of Hamilton Industries. If Jake
wants to predict Hamilton's future cash flows before he makes his investment, which financial statement should he
look at? ANS balance sheet
Malone, Inc. sold bonds of Goodwin Enterprises and also issued 10-year term bonds to raise money for an
expansion. What is the difference between these transactions? ANS Selling the bonds of goodwin enterprises
would be a cash inflow from INVESTING ACTIVITIES.
whereas issuing bonds would be cash inflow from FINANCING ACTIVITIES.
Having a balance sheet that is too wide to present on one page is one disadvantage of the ________ form ANS
account
The balance sheet format that lists the assets on the left side of the page and the liabilities and stockholders' equity
on the right side is the ANS account form
Which of the following is a significant noncash activity? ANS conversion of bonds into stock
How is the account form of the balance sheet similar to the report form of the balance sheet? ANS both present
the same account and financial information
Where are liabilities placed on the balance sheet if a company plans to use the report form? ANS on the bottom
of the first page
A nonprofit company's balance sheet has a net assets section which is shown on the balance sheet by deducting all
liabilities from total assets. What format is the nonprofit using? ANS another format
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