Answered: 21. Deerpark Corporation recently…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.3AP

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21.

Deerpark Corporation recently borrowed $70,000 cash from its bank. Which of the following was unaffected by this transaction?

		Assets.
		Liabilities.
		Owners' equity.
		Cash.

22.

In which of the following situations would Daystar Company record unearned revenue in May?

		In April, Daystar Company received payment from a customer for services that are performed in May.
		Daystar Company completes a job for a customer in May; payment will be received in June.
		Daystar Company is paid on May 25 for work done in the first two weeks of May.
		Daystar Company receives payment in May for work to be performed in June and July.

23.

The order of presentation of activities on the statement of cash flows is

		operating, investing, and financing.
		operating, financing, and investing.
		financing, operating, and investing.
		financing, investing, and operating.

24.

Which of the following are the owners of a partnership business?

		(a) Proprietors
		(b) Partners
		(c) Shareholders
		(d) Managers

25.

A trial balance that balances provides proof that all transactions were correctly journalized and posted to the ledger.

True

False

26.

Which one of the following items is not necessary in preparing a statement of cash flows?

		Determine the change in cash
		Determine the cash provided by operations
		Determine cash from financing and investing activities
		Determine the cash in all bank accounts

27.

Pare Company reported a net loss of $30,000 for the year ended December 31, 2014. During the year, accounts receivable decreased $15,000, merchandise inventory increased $25,000, accounts payable increased by $30,000, and depreciation expense of $20,000 was recorded. During 2014, operating activities

		used net cash of $10,000.
		used net cash of $25,000.
		provided net cash of $10,000.
		provided net cash of $25,000.

28.

Which of the following assets is not subject to depreciation and whose usefulness does not decline over time?

		A. Patents.
		B. Copyrights.
		C. Land.
		D. Coal mine.

29.

Which of the following is an example of an intangible asset?

		(a) Copyrights
		(b) Good will
		(c) Patents
		(d) All before

30.

The period of time over which the cost of an asset is allocated to depreciation expense is called its useful life.

True

False

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