Question

Double entry accounting means?

Multiple Choice

• Accounting transactions are recorded twice to allow us to have more than one financial statement

• I do not know

• There are always two transactions, two parties involved and two journal entries

• Each recordable transaction has at least one debit and at least one credit

• It takes double the time to record accounting transactions

2.

Additional short-term borrowings	$	42,000
Purchase of short-term stock investments		10,700
Cash dividends paid	$	34,400
Interest paid		17,200

3.

Which of the following statements best describes the Statement of Cash Flows?

Multiple Choice

• Explains the sources (receipts) and uses (expenditures) of cash

• I do not know

• Shows how cash moves (or flows) from one department to another

• Organizes cash receipts and cash payments into two categories

• Reports the cash balance

Compute cash flows from financing activities using the above company information

Financing Activities
Additional short-term borrowings
Purchase of short-term investments
Cash dividends paid
Cash provided by financing activities

Answer 1

1) Double-entry accounting means?

Each recordable transaction has at least one debit and at least one credit

2)cash flows from financing activities

Short term borrowing = 42000

Cash Dividend Paid = - 34400

Cash flow from Financing activity = $7600

Purchase of short-term investments is a cash outflow from investing activity

Interest paid is a cash outflow from operating activity

3)

Which of the following statements best describes the Statement of Cash Flows?

• Explains the sources (receipts) and uses (expenditures) of cash

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