The following items were reported on the balance sheets and income statement for the Flying Mullet Company: Accounts receivable, December 31, 2016 $ 85,000 Accounts receivable, December 31, 2017 98,000 Sales—2017 750,000 How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?
a. As an addition to sales
b. As a deduction from sales
c. As an addition to net income
d. As a deduction from net income
d
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What account appears on the post-closing trial balance?
a. income summary b. Machinery c. rent expense d. interest income
Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:
A. Direct activities. B. Indirect activities. C. Financing activities. D. Operating activities. E. Investing activities.
Which financial statement reports the amount of accumulated depreciation?
A. Statement of cash flows B. Balance sheet C. Income statement D. Statement of stockholder's equity
If you are a small business owner looking for a loan, a bank will expect you to ________.
A. find equity investors to spread the bank's risk B. incorporate in order to maximize cash flow C. personally guarantee that you will be responsible for the business loan D. incorporate in order to avoid taxation