Question
Where would the event purchased land for cash appear, if at all, on the indirect statement of cash flows?
A. Operating activities section
B. Investing activities section
C. Financing activities section
D. Does not represent a cash flow
Question
In performing a vertical analysis, the base for cost of goods sold is
A. total selling expenses
B. net sales
C. total revenues
D. total expenses
Question
Blanco, Inc. has the following income statement (in millions):
BLANCO, INC.
Income Statement
For the Year Ended December 31, 2011
Net Sales ………………………… $200
Cost of Goods Sold ………………………… 120
Gross Profit ………………………… 80
Operating Expenses ………………………… 44
Net Income ………………………… $ 36
Using vertical analysis, what percentage is assigned to Net Income?
A. 100%
B. 82%
C. 18%
D. 25%
Question
Dawson Company issued 500 shares of no-par common stock for $4,500. Which of the following journal entries would be made if the stock has a stated value of $2 per share?
A. Cash ………………………………………………….. $4,500
Common Stock 4,500
B. Cash ……………………………… $4,500
Common Stock 1,000
Paid-In Capital in Excess of Par 3,500
C. Cash …………………. $4,500 Common Stock 1,000
Paid-In Capital in Excess of Stated Value 3,500
D. Common Stock ………………………………………………….. $4,500
Cash 4,500