III. 1. _______ On a cash flow statement, how would a decrease in accounts receivable be treated in the operations section, using the indirect method? a. add to net income b. subtract from net income c. no effect on the operations section d. it should be ignored

2. _______ Which of the following dates requires no journal entry? A. declaration date b. record date c. payment date d. all of these require entries

3. _______ Diane earns $15 per hour and overtime hours (above 40) are compensated at 1.5 times the regular rate. If Diane works for 44 hours, her gross pay would be: a. $600 b. $690 c. $990 d. none of these

4. _______ Retained Earnings isa. a big pile of cash b. the net income earned for this year only c. the accumulated income minus the dividends since the corporation began d. net income this year minus this years dividends

5. _______ What is the present value of a $5,000 annuity for 3 years, discounted at 6%? A. $13,365 b. $300 c. $15,000 d. $4198

6. _______ Treasury Stock is reported on the balance sheet a. as an addition to Common Stock b. as an addition to Paid in Capital in Excess of Par c. as a deduction from Stockholders Equity d. as an addition to Stockholders Equity

7. _______ On a cash flow statement, the net cash flow reconciles the beginning and ending balances ofa. net income b. the accumulated depreciation account c. the common stock account d. the cash account

8. _______ When John borrowed money for his new car on an installment loan, his accountant advised him that each payment made for the car would consist of a. principal repayment only b. principal plus interest on the unpaid balance c. interest only d. none of these

9. _______ Which of the following will decrease Retained Earnings for a corporation? a. declaring a dividend; b. issuing common stock c. closing a net income d. paying a dividend in cash e. purchase of treasury stock

10. _______ When a small stock dividend is declared, the amount debited to Retained Earnings should be the a. par value of the shares b. the book value of the shares c. the earnings per share d. the market value per share