Author: Anonymous

In preparing a company’s statement of cash flows for the most recent year, Random Corp. reported the following information:        Repayment of outstanding bonds $ 107,000 Purchase of treasury stock   62,000 Issuance of common stock   46,000 Payment of cash dividends   15,000 Net cash flows from financing activities for the year were:

When a company provides services for which cash will not be received until some future date, the company should record the amount billed as accounts receivable.

Jennings, Co. makes a $25,000, 90-day, 7% cash loan to Clayton Co. Jennings’s entry to record the transaction should be:

A credit entry:

Sing Sing Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The Days’ sales in inventory (rounded to whole days) is:

Mah Jong Company’s most recent balance sheet reported total assets of $1.9 million, total liabilities of $0.8 million, and total equity of $1.1 million. Its Debt to equity ratio is:

The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:

Interest expense is not:

The heading on every financial statement lists the three W’s—Who (the name of the business); What (the name of the statement); and Where (the organization’s address).

The description of the relation between a company’s assets, liabilities, and equity, which is expressed as Assets = Liabilities + Equity, is known as the: