Question

In: Accounting

1. Which of the following would be subtracted from net income using the indirect method? A....

1. Which of the following would be subtracted from net income using the indirect method?

  • A. loss on sale of equipment.
  • B. a decrease in accounts payable.
  • C. an increase in long-term investments
  • D. depreciation expense

2. The acquisition of land by issuing common stock is

  • A. a cash transaction that is reported in the investing section in the body of the statement of cash flows.
  • B. a noncash transaction that is disclosed in a supplementary schedule attached to the statement of cash flows.
  • C. a noncash transaction that is reported in the operating section in the body of the statement of cash flows.
  • D. only reported if the statement of cash flows is prepared using the direct method.

3.In general terms, a sound capital investment will earn

  • A. back its original capital outlay and provide a reasonable return on the original investment.
  • B. back its original capital outlay by the midpoint of its useful life.
  • C. back its original capital outlay.
  • D. a return greater than existing capital investments

Solutions

Expert Solution


ekkarill92 answered 1 year ago
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