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Multiple Choice

1. Georgia Company's beginning and ending inventory amounts were $150,000 and $140,000, respectively. Cost of goods sold was $670,000. Georgia Company purchased ________ of inventory.
a)$680,000
b)$670,000
c)$660,000
d)an indeterminable amount

2. Which of the following could be used as account titles to refer to the owners paying more than the par value for a company's common stock?
1. paid in capital
2. additional paid in capital
3. capital in excess of par value of stock
4. capital surplus

a)only 2
b)2 and 3
c)1, 2, and 3
d)1, 2, 3, and 4

3. ________ is the major operating activity that increases cash.
a)Sales on account
b)Collections from sales to customers
c)Advances from customers
d)Proceeds received from issuing stock

4. The cash paid for taxes is included in the ________ section of the statement of cash flows.
a)net cash
b)expense
c)financing
d)operating

Solution Preview

1. Use the equation
Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
670,000 = ...

Solution Summary

The solution explains some multiple choice questions relating to inventory, common stock, cash and cash flows

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