ACCT 557 Week 6 Homework & Quiz Intermediate Accounting III

ACCT 557 Week 6 Homework & Quiz Intermediate Accounting III

Week 6 

ACCT 557 Week 6 Homework, Fancy Footwork Company

Week 6 Quiz

1. (TCO F) What is the primary purpose of the statement of cash flows? (Points : 5)

1. (TCO F) Which of the following is not true? (Points : 5)

Companies classify some cash transactions relating to investing or financing activities as operating activities.

1. (TCO F) Glitter Girl, Inc. recognized net income of $136,000 including $24,000 in depreciation expense.

1. (TCO F) Pig Builder’s, Inc. shows the following as of December 31, 2012.

Acquired 50% of Wolf Corp’s common stock for $160,000 cash, which was borrowed from Granny’s Bank.        

1. (TCO F) Pig Builder’s, Inc. shows the following as of December 31, 2012.

Acquired 50% of Wolf Corp’s common stock for $160,000 cash which was borrowed from Granny’s Bank.        

Issued 5,000 shares of its preferred stock for land having a fair value of $320,000       

1. (TCO F) Cash flows from operating activities (indirect and direct methods).

Presented below is the income statement of Smiling Tiger, Inc.