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 ?