61.At the end of April 2007, the CleanWater Company received $270,000 from customers for water used during March, 2007. CleanWater’s employees were paid $70,000 during April and the company paid $10,000 in rent on their building and $4,000 in utility cost during the month. Determine profit from operations for the month of April, 2007.
62.Cat Production Company began operations and acquired inventory for $80,000 on the first day of August. One-half of the inventory purchase price was paid in cash with the balance due in 60 days. During August, one-fourth of the inventory was sold to customers for $64,000 cash. Wages of $10,000 were paid to employees in cash. By month-end, a $600 electric bill had been received but not paid. Determine net cash flow from operations for August.
Net Cash Flow
63.Merchandise inventory costing $20,000 was sold to customers for $28,000 cash. What amount of revenue and cash flow resulted from this transaction?
Revenue Cash Flow
64.Tyler & Company had the following account balances at the end of September:
Cash received from customers$5,400
Sales revenue (all on account)7,000
Purchase of land (all for cash)700
Cash paid for equipment2,200
Cost of goods sold3,000
Other operating expenses900
What amounts should be reported for each of the following?
Net Income Cash Flow
65.The statement of cash flows reflects
a.the costs of resources consumed in producing, selling, and distributing goods and services and the prices of goods and services sold during a period
b.the cash consequences of financing, investing, and operating activities during a period
c.the resources available for use in the transformation process and claims to those resources at a point in time
d.summaries of accounts by general categories
66.Which of the following financial statements reports the resources available for use in the transformation process and claims to those resources at a point in time?
a.the income statement
b.the cash-flow statement
c.the balance sheet
d.the retained earnings statement
67.Which of the following is a cash flow from an investing activity?
a.payment for advertising
b.cash receipt from a customer for a previous credit sale
c.cash received from sale of equipment
d.purchase of inventory
68.Which financial statements cover a specific period of time?
a.Income Statement and Balance Sheet
b.Balance Sheet and Statement of Cash Flows
c.Income Statement and Statement of Cash Flows
d.Statement of Cash Flows and Statement of Assets, Liabilities and Owners' Equity
69.The statement of cash flows is designed to report
a.how the previous period's income statement relates to the current period's income statement
b.only the uses of cash during the current period
c.the cash received and used from operating, financing and investing activities of the company during the current period
d.the effects of the current period's income statement on the current period's balance sheet
70.A statement of cash flows has been prepared. The sum of the three major components (operating activities, investing activities, financing activities) will add up to an amount equal to
a.the ending amount of working capital
b.the net change in the cash account during a fiscal period
c.the ending cash balance reported on the balance sheet
d.net income for the period on the accrual basis
71.Which of the following accounts would be increased as a result of the sale of inventory to a customer?
a.cost of goods sold
72.A credit entry is used to record increases to
a.cost of goods sold
73.As used in accounting, what do the terms “debit” and “credit” mean?
a.bad and good things, respectively, that happen to a business
b.down and up, respectively
c.left and right sides, respectively, of an account
d.first and second, respectively