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Krech Corporation's comparative balance sheet appears below: Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets. Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Comparative Balance Sheet Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Multiple Choice Ending Balance $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 13,000 52,000 67,000 132,000 76,000 208,000 Beginning Balance $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 28,000 26,000 67,000 73,000 95,000 99,000 $ 303,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the Indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? The change in Accounts Payable will be added to net income: The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be subtracted from net income: The change in Accrued Liabilities will be added to net income The change in Accounts Payable will be subtracted from net income. The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be added to net income: The change in Accrued Liabilities will be added to net income

Krech Corporation's comparative balance sheet appears below: Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets. Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Comparative Balance Sheet Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Multiple Choice Ending Balance $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 13,000 52,000 67,000 132,000 76,000 208,000 Beginning Balance $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 28,000 26,000 67,000 73,000 95,000 99,000 $ 303,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the Indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? The change in Accounts Payable will be added to net income: The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be subtracted from net income: The change in Accrued Liabilities will be added to net income The change in Accounts Payable will be subtracted from net income. The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be added to net income: The change in Accrued Liabilities will be added to net income

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Krech Corporation's comparative balance sheet appears below: Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Comparative Balance Sheet Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Ending Balance Multiple Choice $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 13,000 52,000 67,000 132,000 76,000 208,000 28,000 67,000 95,000 $ 303,000 Beginning Balance $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 26,000 73,000 99,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income
Transcribed Image Text:Krech Corporation's comparative balance sheet appears below: Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Comparative Balance Sheet Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Ending Balance Multiple Choice $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 13,000 52,000 67,000 132,000 76,000 208,000 28,000 67,000 95,000 $ 303,000 Beginning Balance $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 26,000 73,000 99,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities. Which of the following is correct regarding the operating activities section of the statement of cash flows? The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income
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