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During 2009, Bart's Brewskies saw a jump in accounts receivables. It went from $10,000 at year end in 2008 to $20,000 at year end in 2009. With the introduction of his newest brewskie, chocolate beer, Bart saw his sales skyrocket. In 2009, his sales were $120,000. How much cash did Bart's Brewskies take in for 2009? Mark one answer:

$105,000 $120,000 $130,000 $140,000 $110,000

The Correct Answer

Which one of the following would constitute a highly inflationary economy when determining the functional currency of a foreign entity?

(A)20% inflation for each of the past 5 years. (B)30% inflation for each of the past 3 years. (C)35% inflation for each of the past 3 years. (D)20%, 35%, and 40% inflation, respectively, for each of the past 3 years.

Correct Answer: C

The statement of cash flow reports are used for the following: (I)Investing activities(I) Financing activities(I)I Operating activities(I) Supplemental activities Mark one answer:

(A)I (B)II (C)III (D)I, II, and III (E)I, II, III, and IV

Correct Answer: E

Larry, who uses the accrual basis of accounting, hired an extra driver to help him make deliveries in December. The extra driver only works from December 1st through the 31st . Larry pays the driver on January 5th, but the expense is shown on the December income statement. Why? Mark one answer:

(A)Cost benefit analysis (B)Matching principle (C)Cost principle (D)Going concern principle (E)Gross profit margin analysis

Correct Answer: B

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