1. As a $180,000 debit to prepaid insurance.
  2. As a $60,000 debit to insurance expense.
  3. As a $60,000 debit to insurance expense, a $120,000 debit to prepaid asset, and $180,000 credit to retained earnings.
  4. As a $180,000 debit to insurance expense, a $120,000 credit to prepaid asset, and $60,000 credit to retained earnings.

Proceeds from sale of investments                             $80,000
Purchase of property, plant and equipment             $10,000
Proceeds from long-term debt                                  $100,000
Loss on sale of investment                                             $5,000

What amount should be reported as net cash provided by financing activities in Box’s statement of cash flows?

  1. $70,000
  2. $75,000
  3. $80,000
  4. $100,000

Strut’s                                                  Plane’s consolidated
balance sheet                                              balance sheet

  1. Yes                                                                     Yes
  2. Yes                                                                     No
  3. No                                                                      Yes
  4. No                                                                      No

  1. $15,000 cash inflow from financing activities.
  2. $10,000 cash inflow from financing activities and $5,000 adjustment to arrive at cash flows from operating activities.
  3. $15,000 cash flow from investing activities.
  4. $10,000 cash flow from investing activities and $5,000 adjustment to arrive at cash flows from operating activities.

 

Net income                              Other comprehensive income

  1. $100,000                                                      $0
  2. $75,000                                                   $25,000
  3. $25,000                                                   $75,000
  4. $0                                                             $75,000

  1. Accruals are concerned with expected future cash receipts and payments, while deferrals are concerned with past cash receipts and payments.
  2. Accruals are concerned with past cash receipts and payments, while deferrals are concerned with expected future cash receipts and payments.
  3. Both accruals and deferrals are concerned with expected future cash receipts and payments.
  4. Both accruals and deferrals are concerned with past cash receipts and payments