1. Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections:
|
Total Assets Total Liabilities Total Stockholders' Equity
|
|
Decrease Increase Decrease
|
|
Decrease No change Increase
|
|
Increase Decrease No change
|
|
No change Increase Decrease
|
2. On July 1, 2014, Linden Company purchased the copyright to Norman Computer Tutorials for $140,000. It is estimated that the copyright will have a useful life of 5 years. The amount of Amortization Expense recognized for the year 2014 would be
$28,000 or $13,125 or 25,900 or 14,000
3. All of the following requirements about internal controls were enacted under the Sarbanes Oxley Act of 2002 except
companies must develop sound internal controls over financial reporting.
companies must continually assess the functionality of internal controls.
independent outside auditors must eliminate redundant internal control.
independent outside auditors must attest to the level of internal control.
4. Zoum Corporation had the following transactions during 2014:
1. Issued $125,000 of par value common stock for cash.
2. Recorded and paid wages expense of $60,000.
3. Acquired land by issuing common stock of par value $50,000.
4. Declared and paid a cash dividend of $10,000.
5. Sold a long-term investment (cost $3,000) for cash of $3,000.
6. Recorded cash sales of $400,000.
7. Bought inventory for cash of $160,000.
8. Acquired an investment in Zynga stock for cash of $21,000.
9. Converted bonds payable to common stock in the amount of $500,000.
10. Repaid a 6 year note payable in the amount of $220,000.
What is the net cash provided by financing activities?
mce_markerlt;605,000>.
$395,000.
$115,000.
mce_markerlt;105,000>.