Test 5

Question 1

A proxy is a legal document that instruct a stockholders agent how to vote shares of the stock for the stockholder (T OR F)

Answer 1

True

Question 2

Julie’s Boutique has total receipts for the month of $29,295 including sales taxes. If the sales tax rate is 5% what are Julies sales for the month?

Answer 2

$27900

Question 3

Secured bonds are bonds that…

Answer 3

have specific assets of the issuer pledged as collateral

Question 4

Generally the most important category on the statement of cash flows is cash flows from

Answer 4

Operating activities

Question 5

Land acquired from the issuance of common stock is reported

Answer 5

In a separate schedule at the bottom of the statement (non cash activity

Question 6

The statement of cash flows will not provide insight into…

Answer 6

why dividends were not increased

Question 7

The statement of cash flows…

Answer 7

is used to assess an entity’s ability to pay dividends and meet obligations

Question 8

Which of the following transactions would not be classified as a financing activity?

Answer 8

purchase of along term investment in bonds

Question 9

If an investor owns between 20% and 50% of an investor’s common stock, it is presumed that the investor has significant influence of the investee (T OR F)

Answer 9

True

Question 10

Free cash flow equals cash provided by…

Answer 10

operations less capital expenditures and cash dividends