ACC 421 Week 4 CPA Practice
1. What was New England's cash balance at the end of the year?
2. 2-In Trey's December 31, 2005 Balance Sheet, what amount
should be reported as total current assets?
3. Noncash financing and investing activity reported in a separate
schedule.
4. 4-Which of the following transactions is included in the
operating activities section of a cash flow statement prepared using
the indirect method?
5. 5-Mirr, Inc. was incorporated on January 1, year 1, with
proceeds from the issuance of $750,000 in stock and borrowed funds
of $110,000. During the first year of operations, revenues from sales
and consulting amounted to $82,000, and operating costs and
expenses totaled $64,000. On December 15, Mirr declared a $3,000
cash dividend, payable to stockholders on January 15, year 2. No
additional activities affected owners’ equity in year 1. Mirr’s
liabilities increased to $120,000 by December 31, year 1. On Mirr’s
December 31, year 1 balance sheet, total assets should be reported at
6. 6-Jackson Company classifies trading securities as an operating
activity based on their nature and purpose. In a statement of cash
flows in which the operating activities section is prepared under the
indirect method, the realized gain on an investment in securities held
for trading should be presented as
7. 7-In a statement of cash flows, which of the following would
increase reported cash flows from operating activities using the direct
method?
8. 8-In a statement of cash flows, proceeds from issuing equity
instruments should be classified as cash inflows from
9. 9In its June 30, 2004, balance sheet, what amount should Gold
report as current assets?