Reference no: EM132593032

Question 1: During the year, ABC Corporation's Treasury Stock account increased $46,000 due to a cash purchase, cash dividends of $42,000 were paid and the company reported net income of $200,000. On the statement of cash flows (indirect method), Net cash used by financing activities is:

Select one:

a. ($88,000).

b. ($158,000).

c. ($112,000).

d. ($154,000).

Question 2: If bonds are issued at a premium, the carrying value of the bonds will be greater than the face value of the bonds for all periods prior to the bond maturity date.

Select one:

a. TRUE

b. FALSE

Question 3: Assume that the S & B partnership agreement gave Steely 60% and Breck 40% of partnership income and losses. The partnership lost $27,000 in the current period. This implies that Steely's share of the loss equals $16,200, and Breck's share equals $10,800.

Select one:

a. TRUE

b. FALSE

Question 4: On a statement of cash flows prepared with the indirect method, financing activities do NOT include:

Select one:

a. payment of dividends.

b. payment of interest on long-term debt.

c. sale of treasury stock.

d. payment of principal amounts of long-term debt.

Question 5: In 2019, ABC Corporation purchased treasury stock with a cost of $49,000. During the year, the company declared and paid dividends of $8000 and issued bonds payable for $1,100,000. Net cash provided by financing activities for 2019 is:

Select one:

a. $1,092,000.

b. $1,100,000.

c. $1,051,000.

d. $1,043,000.