D) decrease operating activities on the cash flow statement
Answer: C
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
38) Common shares appear on the:
A) balance sheet
B) income statement
C) cash flow statement
D) retained earnings statement
Answer: A
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
39) The repayment of a note payable would be classified as a(n):
A) investing activity on a cash flow statement
B) financing activity on a cash flow statement
C) operating activity on a cash flow statement
D) current asset on the balance sheet
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
40) The issuance of shares for cash would be classified as a(n):
A) investing activity on a cash flow statement
B) financing activity on a cash flow statement
C) operating activity on a cash flow statement
D) current asset on the balance sheet
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
41) Income taxes owed to the federal government would be classified as a:
A) current asset on the balance sheet
B) current liability on the balance sheet
C) non-current asset on the balance sheet
D) financing activity on the cash flow statement
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
42) The balance sheet contains information about:
A) liabilities, equity, and expenses
B) assets, revenues, and liabilities
C) assets, liabilities, and equity
D) revenues, expenses, and equity
Answer: C
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
43) Which of the following financial statements provides a "snapshot photo" of one moment in time?
A) balance sheet
B) income statement
C) statement of retained earnings