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ACG 201
Chapter 5 Quiz
Fall 2011

Multiple Choice: Choose the most correct answer. Show your work where appropriate. 1. | The correct order to present current assets is | A) | cash, accounts receivable, prepaid items, inventories. | B) | cash, accounts receivable, inventories, prepaid items. | C) | cash, inventories, accounts receivable, prepaid items. | D) | cash, inventories, prepaid items, accounts receivable. |

2. | The stockholders' equity section is usually divided into what three parts? | A) | Preferred stock, common stock, treasury stock | B) | Preferred stock, common stock, retained earnings | C) | Capital stock, additional paid-in capital, retained earnings | D) | Capital stock, appropriated retained earnings, unappropriated retained earnings |

3. | The financial statement which summarizes operating, investing, and financing activities of an entity for a period of time is the | A) | retained earnings statement. | B) | income statement. | C) | statement of cash flows. | D) | statement of financial position. |

4. | Making and collecting loans and disposing of property, plant, and equipment are | A) | operating activities. | B) | investing activities. | C) | financing activities. | D) | liquidity activities. |

5. | In preparing a statement of cash flows, cash flows from operating activities | A) | are always equal to accrual accounting income. | B) | are calculated as the difference between revenues and expenses. | C) | can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. | D) | can be calculated by appropriately adding to or deducting from net income those items in the income statement that do affect cash. |

6. | Which of the following balance sheet