Which of the Following Would Be Reported on the Income

question 167

Multiple Choice

Which of the following would be reported on the income statement for Year 2?

• A)Supplies that were purchased and used in Year 1 but paid for in Year 2.
• B)Supplies that were purchased in Year 1,but used in Year 2.
• C)Dividends that were paid in Year 2.
• D)Accounts Receivable as of December 31,Year 2.

Identify the reporting of transactions involving sale and purchase of assets in the statement of cash flows.

Understand how non-cash transactions are reported within the statement of cash flows.

Calculate cash receipts or payments related to financing activities including dividends and stock transactions.

Understand the preparation of statement of cash flows using the direct method for operating activities.

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Definitions:

Encomienda System

A labor system in Spanish America granting colonists the right to demand tribute and forced labor from the indigenous inhabitants.

Tributary Indian Villages

Native American communities that were subjugated by colonial powers to pay tribute, either in goods or labor.

Conquistadors

The soldiers, explorers, and adventurers at the service of the Spanish and Portuguese Empires who established dominion over much of the Americas and Asia from the 15th to 17th centuries.

Voyages of Exploration

Expeditions undertaken from the late 15th century onwards by European powers to discover and map new lands, establishing trade routes and colonies.