Midterm Accounting
National Taiwan University
Department of Business Administration
Principle of Accounting: MID-Exam 1 (Problem)
March 18 , 2013
Student Major and Class (系級)
Student Name Student Number
Problem 1 (10 points, 2 point/each)
1. Which of the following is incorrect about the statement of cash flows? a. It is a fourth basic financial statement. b. It provides information about cash receipts and cash payments of an entity during a period. c. It reconciles the ending cash account balance to the balance per the bank statement. d. It provides information about the operating, investing, and financing activities of the business.
2. Common Stock dividends distributable a. is a contra equity account. b. is a current liability. c. is reported as an addition to equity under Capital Stock–Common Stock. d. reduces total equity
3. Short-term debt investments must be readily marketable and expected to be sold within: e. 3 months from the date of purchase. f. the next year or operating cycle, whichever is shorter. g. the next year or operating cycle, whichever is longer. h. the operating cycle.
4. Cash dividends paid to shareholders are classified on the statement of cash flows as: i. operating activities j. investing activities. k. a combination of (a) and (b). l. financing activities.
5. Oxford Inc. was authorized to issue 50,000 £10 par value Common Stock. As of December 31, 2011, the company had issued 22,000 shares at an average price of £22 per share. During 2011, the company felt that the shares were undervalued so it purchased 5,000 treasury shares at £18 per share. When the share price rebounded later in the year, the company sold 2,000 of the treasury for £25. Retained earnings was £829,000 at December 31, 2011.
The amount
Department of Business Administration
Principle of Accounting: MID-Exam 1 (Problem)
March 18 , 2013
Student Major and Class (系級)
Student Name Student Number
Problem 1 (10 points, 2 point/each)
1. Which of the following is incorrect about the statement of cash flows? a. It is a fourth basic financial statement. b. It provides information about cash receipts and cash payments of an entity during a period. c. It reconciles the ending cash account balance to the balance per the bank statement. d. It provides information about the operating, investing, and financing activities of the business.
2. Common Stock dividends distributable a. is a contra equity account. b. is a current liability. c. is reported as an addition to equity under Capital Stock–Common Stock. d. reduces total equity
3. Short-term debt investments must be readily marketable and expected to be sold within: e. 3 months from the date of purchase. f. the next year or operating cycle, whichever is shorter. g. the next year or operating cycle, whichever is longer. h. the operating cycle.
4. Cash dividends paid to shareholders are classified on the statement of cash flows as: i. operating activities j. investing activities. k. a combination of (a) and (b). l. financing activities.
5. Oxford Inc. was authorized to issue 50,000 £10 par value Common Stock. As of December 31, 2011, the company had issued 22,000 shares at an average price of £22 per share. During 2011, the company felt that the shares were undervalued so it purchased 5,000 treasury shares at £18 per share. When the share price rebounded later in the year, the company sold 2,000 of the treasury for £25. Retained earnings was £829,000 at December 31, 2011.
The amount