During the Year,the Abbot Company Had the Following Changes in Account

question 67

Multiple Choice

During the year,the Abbot Company had the following changes in account balances:
1) The Accumulated Depreciation account had a beginning balance of $25,000 and an ending balance of $35,000.The increase was due to depreciation expense.
2) The long-term Notes Payable account had a beginning balance of $40,000 and an ending balance of $15,000.The decrease was due to repayment of debt.
3) The Accounts Receivable account had a beginning balance of $60,000 and an ending balance of $50,000.
4) The Equipment account had a beginning balance of $25,000 and an ending balance of $92,500.The increase was due to the purchase of equipment for cash.
5) The Long-Term Investments account (marketable securities) had a beginning balance of $18,000 and an ending balance of $12,500.The decrease was due to the sale of investments at cost.
6) The amount of cash dividends declared and paid during the year was $22,000.
7) The Interest Payable account had a beginning balance of $2,250 and an ending balance of $1,250.
What is the net cash flow from financing activities?

• A)$22,000 inflow
• B)$25,000 inflow
• C)$25,000 outflow
• D)$47,000 outflow

Differentiate between types of damages (liquidated, incidental, consequential) within the context of UCC remedies.

Understand the legal implications of non-delivery, rejection of goods, and misrepresentation of solvency in transactions governed by the UCC.

Understand the concept of warranties and applicable time frames for claims.

Grasp the rights and obligations of parties in a breached contract including notice and resale.

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Definitions:

Increasing Assets

Refers to the growth or escalation in the value of assets owned by a business or individual.

Accrued Expenses

Costs that have been incurred but not yet paid for, recognized under the accrual basis of accounting.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on the company’s balance sheet.