Answer: B
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
32) Notes receivable due in 60 days would be classified as a:
A) non-current asset on the balance sheet
B) current asset on the balance sheet
C) current liability on the balance sheet
D) non-current liability on the balance sheet
Answer: B
Diff: 1 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
33) Cash received from the issuance of share capital would appear:
A) as an operating activity on the cash flow statement
B) would not appear on a cash flow statement
C) as an investing activity on the cash flow statement
D) as a financing activity on the cash flow statement
Answer: D
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
34) Losses are reported on the:
A) income statement
B) balance sheet
C) cash flow statement
D) statement of retained earnings
Answer: A
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
35) What is the proper order for the cash flow statement?
A) financing activities, investing activities, and operating activities
B) operating activities, investing activities, and financing activities
C) operating activities, financing activities, and investing activities
D) investing activities, financing activities, and operating activities
Answer: B
Diff: 2 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
36) The ending balance in retained earnings appears on the:
A) balance sheet only
B) balance sheet and statement of retained earnings
C) statement of retained earnings only
D) income statement
Answer: B
Diff: 3 Type: MC
L.O.: 1-2
CPA COMPETENCIES: Chapter 1
1.1.1 Evaluates financial reporting needs
1.1.2 Evaluates the appropriateness of the basis of financial reporting
1.1.3 Evaluates reporting processes to support reliable financial reporting
37) Cash dividends:
A) decrease revenue on the income statement
B) increase expenses on the income statement
C) decrease retained earnings on the retained earnings statement