Questions from Financial Accounting

Q: Which of the following transactions qualify as noncash investing and financing activities

Which of the following transactions qualify as noncash investing and financing activities? _____ Purchase of building with mortgage payable. _____ Additional short-term borrowing from bank. _____ Divi...

Q: What are the typical cash inflows from operating activities? What are

What are the typical cash inflows from operating activities? What are the typical cash outflows from operating activities?

Q: Under the indirect method, depreciation expense is added to net income

Under the indirect method, depreciation expense is added to net income to report cash flows from operating activities. Does depreciation cause an inflow of cash?

Q: What are the typical cash inflows from investing activities? What are

What are the typical cash inflows from investing activities? What are the typical cash outflows from investing activities?

Q: What are the typical cash inflows from financing activities? What are

What are the typical cash inflows from financing activities? What are the typical cash outflows from financing activities?

Q: James Company purchased $800,000, 8 percent bonds issued

James Company purchased $800,000, 8 percent bonds issued by Heidi Company on January 1 of the current year. The purchase price of the bonds was $900,000. Interest is payable semiannually each June 30...

Q: You have the opportunity to invest $10,000 in one

You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is below. Which company would you select? Justify your choice.

Q: A company has total assets of $500,000 and noncurrent

A company has total assets of $500,000 and noncurrent assets of $400,000. Current liabilities are $40,000. What is the current ratio? a. 12.5 b. 10.0 c. 2.5 d. Cannot be determined without additional...

Q: Which of the following would not change the receivables turnover ratio for

Which of the following would not change the receivables turnover ratio for a retail company? a. Increases in the retail prices of inventory. b. A change in credit policy. c. Increases in the cost incu...

Q: Which of the following ratios is used to analyze liquidity?

Which of the following ratios is used to analyze liquidity? a. Earnings per share. c. Current ratio. b. Debt-to-equity ratio. d. Both (a) and (c).