The purchase of treasury stock would be shown under which section on the statement of cash flows? Mark one answer:
(A)Operating
(B)Investing
(C)Financing
(D)Supplemental
(E)It is not reported on the statement of cash flows.
Retained earnings are revenue of a corporation that is:
(A)Not paid out in dividends (B)Paid to shareholders (C)Considered gross profit (D)Shown in a trial balance (E)Issued in stock
Correct Answer: A
Cartman's Cats has $1,000,000 in assets after purchasing Big Bertha's Birds, along with $500,000 in liabilities. It has 500 shares capital stock outstanding. What is the book value of each share of stock? Mark one answer:
(A)$1,000 (B)$50 (C)$500 (D)$2,000 (E)$500,000
Correct Answer: A
One purpose of GAAP is to provide _____ between accounting periods.
(A)Relativity
(B)Compression
(C)Contention
(D)Collaboration
(E)Comparability
Correct Answer: E
More CPA Exam Questions
- 1Jenny's Bakery recently delivered a bad batch of cakes to a local restaurant. Jenny quickly refunded the cost of the cakes to the restaurant. Her accountant made a _____ to her Refunds of Sales account for this transaction:
- 2A government internal audit function is presumed to be free from organizational independence impairments for reporting internally when the head of the organization
- 3Larry the Lawyer is going to represent Bart's Brewskies in an upcoming litigation. Bart is being sued for representing his brewskies as being non-alcoholic, when in fact, they were 80-proof. Larry has asked Bart for a retainer of $1,000 before he'll even meet with Bart. Assuming the accrual basis of accounting is in play, that $1,000 is considered (for Larry): Mark one answer:
- 4Another name for an income statement is a: Mark one answer:
- 5If Jenny's Bakery purchased an insurance policy, assuming the accrual accounting method is still being used, when would the company report the cost of the policy as an expense?