MULTIPLE CHOICE QUESTION:
1. In preparing a statement of cash flows, which of the following transactions would be considered an investing activity?
a. Sale of equipment at book value
b. Sale of merchandise on credit
c. Declaration of a cash dividend
d. Issuance of bonds payable at a discount.
2. The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is:
a. Outstanding checks.
b. Deposit in transit.
c. A bank error.
d. Dank service charges.