1- Debt investment are initially recorded at:а- Costb- Cost plus accrued interestc- Fair valued- None of the above2- The Sohar company report net income of $60,000. If partners Sultan, Ahmed andSalem have an income ratio of 50%,30%, and 20%, respectively, Salem's share ofthe net income is:a- $30,000b- $12,000с- 18,000d- No correct answer is given3- Which is an example of a cash flow from an operating activity?a- Payment of cash dividends to the company's stock holdersb- Receipt of cash from the sale of capital stockc- Payment of cash to lenders for interest1

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1- Debt investment are initially recorded at: а- Cost b- Cost plus accrued interest c- Fair value d- None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

1- Debt investment are initially recorded at:
а- Cost
b- Cost plus accrued interest
c- Fair value
d- None of the above
2- The Sohar company report net income of $60,000. If partners Sultan, Ahmed and
Salem have an income ratio of 50%,30%, and 20%, respectively, Salem's share of
the net income is:
a- $30,000
b- $12,000
с- 18,000
d- No correct answer is given
3- Which is an example of a cash flow from an operating activity?
a- Payment of cash dividends to the company's stock holders
b- Receipt of cash from the sale of capital stock
c- Payment of cash to lenders for interest
1

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