As a financing activity that decreases cash and decreases liabilities.
As a financing activity that decreases cash, decreases stockholders' equity, and decreases net income.
As an investing activity that decreases cash and decreases liabilities.
Repaying a bank loan is a cash outflow for financing activities that decreases assets and decreases liabilities.
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Prepare a statement of cash flows.
73.
Award: 1.00 point
74.
Award: 1.00 point
Retained Earnings at the beginning and ending of the period were $1,000 and $2,100, respectively. If revenues were $3,900 and dividends paid to
stockholders were $900, what was the amount of expenses for the period?
$1,100.
$2,800.
$1,900.
$3,000.
Beginning retained earnings of $1,000 + Revenues of $3,900 − Expenses − Dividends of $900 = Ending retained earnings of $2,100
Expenses = $1,900
References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 3 Hard Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
Retained Earnings at the beginning and ending of the period were $300 and $800, respectively. If revenues were $1,100 and dividends paid to stockholders
were $200, what was the amount of expenses for the period?
$500
$400
$900
$700
Beginning retained earnings of $300 + Revenues of $1,100 − Expenses − Dividends of $200 = Ending retained earnings of $800; Expenses = $400
References
Multiple Choice Learning Objective: 01-04 Show
how business events affect the
accounting equation.
Difficulty: 3 Hard Learning Objective: 01-07
Prepare an income statement, a
statement of changes in
stockholders equity, and a
balance sheet.
75.
Award: 1.00 point
76.
Award: 1.00 point
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $60,000
2) borrowed $35,000 from its bank
3) provided consulting services for $59,000 cash
4) paid back $25,000 of the bank loan
5) paid rent expense for $14,000
6) purchased equipment for $22,000 cash
7) paid $4,000 dividends to stockholders
8) paid employees' salaries of $31,000
What is Yowell's net cash flow from operating activities?
Inflow of $45,000
Inflow of $14,000
Inflow of $10,000
Inflow of $28,000
Net cash flow from operating activities = $59,000 inflow from consulting services − $14,000 outflow for rent expense − $31,000 outflow for salaries expense =
$14,000 inflow
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Prepare a statement of cash flows.
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000
2) borrowed $25,000 from its bank
3) provided consulting services for $39,000 cash
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment for $12,000 cash
7) paid $3,000 dividends to stockholders
8) paid employees' salaries of $21,000
What is Yowell's net cash flow from operating activities?
Inflow of $6,000
Inflow of $9,000
Inflow of $18,000
Inflow of $30,000
Net cash flow from operating activities = $39,000 inflow from consulting services − $9,000 outflow for rent expense − $21,000 outflow for salaries expense =
$9,000 inflow
References
Multiple Choice Difficulty: 2 Medium Learning Objective: 01-08 Prepare a statement of cash flows.
77.
Award: 1.00 point
78.
Award: 1.00 point
Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $58,000
2) borrowed $34,000 from its bank
3) provided consulting services for $57,000 cash
4) paid back $24,000 of the bank loan
5) paid rent expense for $13,500
6) purchased equipment for $21,000 cash
7) paid $3,900 dividends to stockholders
8) paid employees' salaries of $30,000
What is Yowell's notes payable balance at the end of Year 1?
$10,000
$0
$34,000
$24,000
Beginning notes payable balance of $0 + Loan of $34,000 − Repayment of loan of $24,000 = Ending notes payable balance of $10,000.