Correct Answers
Cashiinvestmentsimadeibyitheistockholdersiofitheibusinessiareireported
ionitheistatementioficashiflowsiinithei___________.
a.ifinancingiactivitiesisection
b.iinvestingiactivitiesisection
c.ioperatingiactivitiesisection
d.isupplementalistatementi-iCorrectiAnswer-a.
Theiroleiofiaccountingiinibusinessiisibestidefinedias:
a.itheipolicies,iprocedures,iandistrategiesiusediiniaibusiness
b.itheiprocessiofitransactionianalysis
c.ianiinformationisystemithatiprovidesireportsitoistakeholdersiaboutithe
ieconomiciactivitiesiandifinancialiconditioniofiaibusiness
d.iaimethodiofiforecastingitheifutureiprofitabilityiofiaicompanyi-
iCorrectiAnswer-c.
aicompanyireportsiandiincreaseiiniassetsiofi$1,700iandiaidecreaseiiniliabi
litiesiofi$300.iWhatiisitheiamountiofichangeiinistockholdersiequity?
a.i1,700
b.i3,000
c.i2,000
, d.i1,300i-iCorrectiAnswer-c.
Ai=iLi+iE;iEi=iAi-iL
Ei=i1,700-i(-300)
Ei=i2,000
Belowiareitypicalitransactionsiofiaicompany.iHowimanyiofithemiareiclas
sifiediasioperatingiactivities?i
-isellicommonistockitoiinvestors
-ireceiveicashifromicustomers
-iincuriamountsioweditoiemployees
-iselliservicesitoicustomers
-iincuricostiofiutilities
-ipayirentiforiaugust
-ipayisalary
-ipurchaseifactoryiforioperation
-ipurchaseisuppliesionicredit
-idistributeicashitoistockiholdersi-iCorrectiAnswer-7.i
-isellicommonistockitoiinvestors
-ireceiveicashifromicustomers
-iincuriamountsioweditoiemployees
-iselliservicesitoicustomers
-iincuricostiofiutilities