A Company Reports the Following Balances: During 2016,net Income

question 13

Multiple Choice

A company reports the following balances: During 2016,net income of $30,000 was reported.No treasury stock was sold during 2016.No common stock was retired during 2016.What financing activities are reported on the statement of cash flows prepared with the indirect method for the year ending December 31,2016?

• A)Sale of treasury stock $5,000 and Payment of dividends $20,000
• B)Purchase of treasury stock $5,000,Payment of dividends $20,000 and Sale of common stock $20,000
• C)Sale of treasury stock $5,000,Sale of common stock $10,000
• D)Payment of dividends $10,000,Sale of common stock $20,000,and Purchase of treasury stock $5,000

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Definitions:

Chargaff

Refers to Chargaff's rules, which are empirical rules regarding the ratios of nucleotide bases within DNA molecules: adenine (A) pairs with thymine (T), and cytosine (C) pairs with guanine (G).

Guanine

One of the four main nucleobases found in the nucleic acids DNA and RNA; it pairs with cytosine.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms and many viruses.

Species

The basic unit of biological classification, defined as a group of individuals that can interbreed and produce fertile offspring.