41) Accumulated depreciation is normally associated with which asset on the Balance Sheet?
A) Inventory
B) Accounts receivable
C) Land
D) Property, plant and equipment
42) Current assets listed in the order of liquidity are:
A) accounts receivable, inventory, cash and cash equivalents.
B) cash and cash equivalents, accounts receivable, short-term investments, inventory.
C) cash and cash equivalents, short-term investments, accounts receivable, inventory.
D) marketable securities, cash and cash equivalents, accounts receivable, inventory.
43) Notes payable (due in 60 days) would appear on the balance sheet as a:
A) current liability.
B) current asset.
C) long-term asset.
D) long-term liability.
44) Which statement below is FALSE?
A) Income taxes payable are tax debts owed to the government.
B) Accrued liabilities can include liabilities for salaries and utilities.
C) Short-term investments include stocks and bonds of other companies.
D) Prepaid expenses include accrued interest payable.
45) The current portion of a long-term note payable is classified on the balance sheet as a:
A) current asset.
B) current liability.
C) long-term asset.
D) long-term liability.
46) Which of the following is a CORRECT statement about long-term assets?
A) Accumulated depreciation increases the cost of property, plant, and equipment on the balance sheet.
B) Intangible assets are long-term assets with no physical form.
C) Long-term investments can never be sold by the company.
D) Other long-term assets include supplies.
47) Which statement about the statement of cash flows is FALSE?
A) Operating activities should be the company's main source of cash.
B) Purchases and sales of long-term assets are financing cash flows.
C) The payment of a dividend is a financing cash flow.
D) The payment of a note payable is a financing activity.
48) What is the proper order for the different categories of cash flows reported on the statement of cash flows?
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
49) All of the following would be considered investing activities on the statement of cash flows EXCEPT for:
A) purchase of land for cash.
B) the sale of equipment for cash.
C) the payment of cash dividends.
D) the purchase of equipment for cash.
50) Examples of financing activities on the statement of cash flows do NOT include:
A) payment of note payable.
B) payment of dividends.
C) repurchase of company's own stock.
D) loaning money to an employee.