1. Cash flows from financing activities include:

Multiple Choice

• Lending.

• Salaries paid.

• The sale of land.

• Dividends paid.

2. A company has the following inventory information for the year:

January 1 Beginning inventory = 100 units @ $10 March 15 Purchased 500 units @ $12 September 20 Purchased 800 units @ $15 Total sales for the year = 1,200 units

The company reports cost of goods sold of $16,000. Which inventory cost method is the company using?

Multiple Choice

• The answer cannot be determined with the information given.

• Weighted-average.

• LIFO.

• FIFO.

3. What type of company purchases raw materials and makes goods to sell?

Multiple Choice

• Merchandiser.

• Retailer.

• Wholesaler.

• Manufacturer.

4. The direct write-off method is used for tax purposes but is generally not permitted for financial reporting.

T or F?