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Which of the following transactions have a negative impact on cash? Mark one answer:

(A)A decrease in supplies on hand

(B)Proceeds from selling equipment used in the business

(C)A loss on selling equipment used in the business

(D)Dividends declared and paid

(E)An increase in income taxes payable

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.

Correct Answer: C

Bart's Brewskies saw sales of $50,000 in December-primarily due to New Year's Eve celebrations. Bart determined that 30% of his sales are paid in cash, while the rest are billed for their brewskies. Of the money owed, 40% is paid December, while the remaining is paid the following month. What is the increase of Accounts Receivable on New Year's Eve?

(A)$21,000 (B)$14,000 (C)$15,000 (D)$35,000 (E)$50,000

Correct Answer: A

Bart’s Brewskies has grown beyond its wildest dreams. They are now a corporation and have hired an accountant. Their income statement is now showing a net income. How is this income shown on the Statement of Retained Earnings? (I) It increases retained earnings.(I). It is shown as dividends paid to shareholders.(I)I. It does not impact the Statement of Retained Earnings. Mark one answer:

(A)Only statement I is correct. (B)Only statement II is correct. (C)Only statement III is correct. (D)Both statement I and II could be correct. (E)None of the statements are correct.

Correct Answer: D