Table 4.1 Ruff Sandpaper Co

question 91

Multiple Choice

Table 4.1
Ruff Sandpaper Co.
Balance Sheets
For the Years Ended 2009 and 2010
-All of the following are financing cash flows EXCEPT

• A) sale of stock.
• B) payment of bonuses.
• C) increasing debt.
• D) repurchasing stock.

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Definitions:

Accounts Payable

Money owed by a company to its creditors for goods and services that have been delivered but not yet paid for.

Accounting Equation

A fundamental principle in accounting that states assets equal liabilities plus owner's equity.

Equipment

Physical assets used in the operation of a business, such as machinery, computers, and furniture.

Cash

Represents money or its equivalents (such as checks) that a company possesses and can use for transactions.