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ACC 421 Week 4 CPA Practice

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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