David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

Accounting Principles
AC 101

Final Study Guide

Multiple Choice Key Chapters 1, 2, 3, 4, , !, ", 1#

Page 1 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

Chapter 1 $ Introduction to Accounting '(" ) *!

1% &hich o' the 'ollo(ing e)ents (ould *e recorded as an accounting e)ent+ a% A guest enters the dining roo, and is seated *y a host% *% A guest co,plains to 'ront o''ice representati)es a*out a dirty guestroo,% c% A )alet par-s a guest.s )ehicle% d. A guest purchases a meal in a food outlet. /he *ranch o' accounting that in)ol)es re)ie(ing and e)aluating docu,ents, records, and control syste,s is called0 a% 'inancial accounting% *% cost accounting% c% ,anagerial accounting% d. auditing. /he ,a1or disad)antage o' the corporate 'or, o' *usiness organi2ation is0 a. double taxation. *% li,ited lia*ility% c% di''iculty in raising capital% d% all o' the a*o)e% 3egardless o' the si2e o' an operation.s accounting depart,ent, the di)ersity o' its responsi*ilities, or the nu,*er and types o' reports produced, the accounting sta'' is responsi*le 'or pro)iding0 a. accurate accounting services. *% clean roo,s that are ready 'or sale% c% in)entory counts% d% guest co,,ent cards% /he generally accepted accounting principle o' ,atching re4uires that0 a% accounting ad1ust,ents *e ,ade at least 4uarterly% *% *alance sheet accounts and inco,e state,ent accounts ,atch% c. expenses be matched with the revenues they generate. d% hospitality *usinesses use the cash *asis o' accounting% /he /ech 5otel purchased a co,puter 'or 63,000% /he retail )alue o' the co,puter is 63, 007 ho(e)er, it is esti,ated that the co,puter (ill ha)e a ,ar-et )alue o' only 62, 00 one year 'ro, no(% /he cost principle dictates that the co,puter purchase *e recorded at the date o' purchase 'or0 a% 62, 00% b. $3,000. c% 63, 00% d% cannot *e deter,ined &hich o' the 'ollo(ing state,ents *est descri*es the accounting principle o' o*1ecti)e e)idence+ a. It requires supporting documents for accounting transactions whenever possible. *% 8t in)ol)es recording, classi'ying, and su,,ari2ing transactions in order to prepare reports% c% 8t re4uires that all e)ents that (ould ,a-e a di''erence to the user o' a 'inancial report *e accounted 'or% d% 8t assu,es that the *usiness (ill sur)i)e 'or the 'oreseea*le 'uture% &hat happens to the 'unda,ental accounting e4uation (hen the sole proprietor o' a *usiness in)ests ,ore cash in it+ a% Assets increase, lia*ilities increase, and o(ner.s e4uity decreases% b. Assets increase, liabilities remain the same, and owner s equity increases. c% Assets re,ain the sa,e, lia*ilities increase, and o(ner.s e4uity increases% d% Assets increase, lia*ilities increase, and o(ner.s e4uity re,ains the sa,e%

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Page 2 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

Chapter 2 $ Accounting for Business Transactions '(" +1 6!

1% /$accounts are so na,ed *ecause o'0 a. their shape% *% the -inds o' in'or,ation they pro)ide% c% their rele)ance to trade analysis% d% their in)entor, (hose na,e (as Mr% /% 9erry accepts a 'or,al, (ritten pro,ise 'ro, an e,ployee o' his hotel to pay a certain su,% /he e,ployee plans to repay the hotel (ithin the current 'iscal year, and states this intention in the note% :otes 3ecei)a*le are classi'ied as0 a% lia*ilities% *% o(ners. e4uity% c% e;penses% d. assets. /he *asic ele,ent used in an accounting syste, to classi'y and su,,ari2e *usiness transactions is the0 a% /$account% b. account. c% lia*ility% d% ,ar-eta*le security% Sara totals the credits and de*its 'or a certain account and 'inds that the account carries a de*it *alance% All o' the 'ollo(ing types o' accounts typically carry a de*it *alance e;cept0 a% asset accounts% b. liability accounts. c% dra(ing accounts% d% e;pense accounts% 3e)enue 'ro, cash sales ulti,ately a''ects (hich t(o *alance sheet accounts+ a% assets and lia*ilities b. assets and owner s equity c% lia*ilities and o(ner.s e4uity d% assets and e;penses All o' the 'ollo(ing are *alance sheet accounts e,ce(t0 a. revenue accounts. *% asset accounts% c% lia*ility accounts% d% o(ners. e4uity accounts% &hich o' the 'ollo(ing -inds o' accounts (ould appear in a general ledger+ a% asset accounts *% dra(ing accounts c% o(ners. e4uity accounts d. all of the above &hich o' the 'ollo(ing state,ents a*out accrual *asis accounting is true+ a% Accrual *asis accounting is re'lected on the state,ent o' cash 'lo(s% *% Accrual *asis accounting is used only *y s,all hospitality *usinesses% c% Accrual *asis accounting allo(s a *usiness to sho( greater pro'its than cash *asis accounting% d. Accrual basis accounting generally requires that several ad!usting entries be recorded at the end of the accounting period.

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Chapter 3 $ Accounting Adjustments '(" !0 -.

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Page 3 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

2%

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A ,eeting planner ,ade a deposit (ith a hotel to reser)e e;hi*it space and the hotel has hosted the ,eeting% :o( that the ,eeting has ta-en place, accountants should ,a-e an ad1ust,ent0 a% in (hich pre)iously recorded assets *eco,e e;penses% b. in which previously recorded liabilities become revenue. c% to record assets and re)enues not pre)iously pro)ided% d% to record lia*ilities and e;penses not pre)iously recorded% &hich o' the 'ollo(ing is an e;a,ple o' an accounting ad1ust,ent in (hich pre)iously recorded assets *eco,e e;penses+ a. "repaid #ent decreases and #ent $xpense increases. *% <tilities Paya*le increases and <tilities =;pense increases% c% Prepaid 8nsurance decreases and 8nsurance =;pense decreases% d% >epreciation =;pense increases and Accu,ulated >epreciation, ?uilding increases% &hich o' the 'ollo(ing ad1ust,ents is an e;a,ple o' an accrual ad1ust,ent+ a% a lia*ility@re)enue ad1ust,ent in)ol)ing unearned re)enues *% an asset@e;pense ad1ust,ent in)ol)ing insurance c% an asset@e;pense ad1ust,ent in)ol)ing depreciation d. a liability%expense ad!ustment involving utility expenses Accounts that record accu,ulated depreciation are sho(n on the0 a. balance sheet as deductions from assets. *% inco,e state,ent as deductions 'ro, lia*ilities% c% inco,e state,ent as increases to e;penses% d% state,ent o' cash 'lo(s as re)enue% 9a,es ?ell plans to stay at the Michaels Motel 'or one ,onth, and he prepays his roo, charges% ?ell arri)es and *egins his stay on 9anuary 21% /o account 'or ?ell.s prepay,ent, at the end o' 9anuary Athe end o' the accounting periodB the ,otel accountant should0 a% credit 3oo, 3e)enue and de*it Cash% *% de*it <nearned 3oo, 3e)enue and credit Cash% c. debit &nearned #oom #evenue and credit #oom #evenue. d% credit Accounts 3ecei)a*le and de*it Cash% Accounting ad1ust,ents to account 'or unpaid (ages (ould0 a% credit &age =;pense and de*it Accrued &ages Paya*le% b. debit 'age $xpense and credit Accrued 'ages "ayable. c% credit *oth &age =;pense and Cash% d% de*it *oth &age =;pense and Accrued &ages Paya*le% /elephone ser)ice costs the =ggleston Motor 5otel 62 0 per (ee-% /he *usiness pays its phone ser)ice *ill on the 'i'teenth day o' each ,onth, *ut it prepares its 'inancial state,ents at the end o' each ,onth% &hich o' the 'ollo(ing types o' ad1ust,ents is re4uired to ensure the accuracy o' the =ggleston Motor 5otel.s 'inancial state,ents+ a. a liability%expense ad!ustment *% an asset@e;pense ad1ust,ent c% a lia*ility@re)enue ad1ust,ent d% an asset@re)enue ad1ust,ent 9ai,e 'ailed to ,a-e ad1usting entries to account 'or the use o' prepaid insurance 'or his hotel% /his ,ista-e a''ects (hich o' the 'ollo(ing 'inancial state,ents+ a% the *alance sheet *% the inco,e state,ent c% the state,ent o' cash 'lo(s d. a and b

Page 4 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

Chapter 4 $ Completing the Accounting Cycle '(" 10! 1*!

1% &hich o' the 'ollo(ing steps in the accounting cycle is per'or,ed i,,ediately *e'ore preparing ad1usting entries+ a% analy2ing transactions *% recording and posting closing entries c. preparing a trial balance d% preparing the 'inancial state,ents 2% /he accounting cycle step that in)ol)es su,,ari2ing the ledger accounts to pro)e the e4uality o' de*its and credits is called0 a% posting ad1usting entries% b. preparing a trial balance. c% preparing the 'inancial state,ents% d% analy2ing transactions% 3% &hich o' the 'ollo(ing ser)es as the lin- *et(een the inco,e state,ent and the *alance sheet+ a% the state,ent o' cash 'lo(s b. the statement of owners equity c% the ad1usted trial *alance d% the post$closing trial *alance 4% /rish is preparing a 'inancial state,ent 'or (hich she needs the *alances o' the o(ners. capital and dra(ing accounts% &hich state,ent is /rish ,ost li-ely preparing+ a% an inco,e state,ent *% an ad1usted trial *alance c. a statement of owners equity d% a state,ent o' cash 'lo(s % 8)an is ,a-ing se)eral entries into the general 1ournal at the restaurant (here he ser)es as an accountant% /he ,ain di''erence *et(een entries 'or routine *usiness transactions and ad1usting entries is that0 a. entries for business transactions are made more often than ad!usting entries. *% ad1usting entries are usually higher than entries 'or routine *usiness transactions% c% ad1usting entries are usually lo(er than entries 'or routine *usiness transactions% d% entries 'or *usiness transactions usually a''ect 'e(er -inds o' accounts than ad1usting entries% !% &hy do accountants close accounts+ a% to ensure that the general ledger is the only re,aining ledger account *% to test the *alance o' de*its and credits c. to consolidate revenues and expenses into one net figure d% to o*tain ,ore detailed in'or,ation on re)enues and e;penses #% Closing the 8nterest 8nco,e account usually in)ol)es0 a% de*iting a lia*ilities account% *% crediting an asset account% c% crediting an e;pense account% d. crediting the (wners $quity account. "% All o' the 'ollo(ing are e;a,ples o' accounts that (ould *e listed on a (or-sheet e,ce(t/ a. Income )ummary. *% 3oo,s 3e)enue% c% 8nterest =;pense% d% >epreciation =;pense% C% &hich o' the 'ollo(ing ite,s do accountants neither pu*lish nor gi)e to ,anagers+ a% the state,ent o' o(ner.s e4uity b. the wor*sheet c% the *alance o' the o(ner.s capital account d% the inco,e state,ent

Page 5 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

Chapter
1% a. *% c% d% 2%

$ Income Statement '(" 106 1)outflows related to the accounting period and expenses that were incurred in the process of producing revenue the a,ounts o' prepaid utility 'ees and allo(ances in'lo(s related to the accounting period and e;penses that (ere incurred in the process o' producing re)enue depreciation and interest inco,e

/he =;penses section o' an inco,e state,ent includes (hich o' the 'ollo(ing+

A certain reser)ationist recei)es a call and ,a-es a reser)ation 'or one roo, night 'or a 'uture hotel guest% /he tra)eler uses a credit card to guarantee the reser)ation, *ut no a,ount is charged to the tra)eler.s account% Fro, an accounting standpoint, a sale DDDDDDDDDDD and the e)ent DDDDDDDDDDDD% a% *% c% d. has *een ,ade7 should *e recorded has not *een ,ade7 should *e recorded has *een ,ade7 should not *e recorded has not been made+ should not be recorded

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5ospitality ,anagers are held responsi*le pri,arily 'or0 a. *% c% d% the profitability of the operation they manage. increasing gains on assets sold% decreasing losses on assets sold% * and c%

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Stor,in. :or,an.s 3esort sold t(o gol' carts 'or a total o' 61,000 in order to raise cash% /he resort.s ,anagers had originally *ought the carts 'or a total o' 6!,000% /he accu,ulated depreciation on *oth carts (as 64,000% /he resort.s ,anagers (ill ha)e to record a DDDDDDDDDD o' DDDDDDDDDD on the sale o' these carts% a% *% c. d% gain7 63,000 loss7 6 00 loss+ $,,000 loss7 64,000

&hich o' the 'ollo(ing groups (ould *e considered internal users o' a co,pany.s inco,e state,ent+ a% *% c. d% !% in)estors creditors operation managers suppliers

=arnings per share is calculated only 'or0 a% *% c% d. sole proprietorships% partnerships% restaurant corporations% corporations.

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Ca,i.s 'loating casino achie)ed an earnings per share o' 612 last accounting period% 8' her 'ir, has 1, 00 shareholders and !,000 shares o' co,,on stocoutstanding, ho( ,uch net inco,e did the 'ir, earn last period+ a% *% c% d. 4 shares 6 , 00 6!0,000 $-.,000

Page 6 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

"%

/he 0ni1or2 Syste2 o1 Accounts 1or the 3odging 4ndustry5 in its ninth re)ised edition, could *e descri*ed as any o' the 'ollo(ing e,ce(t/ a. *% c% d% a set of tables that indicate how much net income a property can expect to earn each year a turn-ey syste, 'or ne( entrants into the hospitality industry% a standardi2ed accounting syste,% an instru,ent that allo(s 'or a ,ore reasona*le co,parison o' the operational results o' si,ilar hospitality 'ir,s%

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3ent, property ta;es, and insurance are all independent o' hotel occupancy rates7 they )ary only (ith the passage o' ti,e% For this reason, these e;penses are called0 a% *% c% d. ,anage,ent 'ees% depart,ental inco,e% costs o' sales% fixed charges.

10% En (hich o' the 'ollo(ing 'inancial state,ents (ould you e;pect to 'ind a line ite, 'or correcting errors that (ere ,ade in a pre)ious 'inancial state,ent+ a% *% c% d. depart,ental operations report the inco,e state,ent the *alance sheet the statement of retained earnings

Chapter ! $ Balance Sheet '" *01 **!

1% &hich o' the 'ollo(ing 'inancial reports ,ost co,pletely re'lects the 'inancial position o' a *usiness at a gi)en point in ti,e+ a. *% c% d% 2% balance sheet state,ent o' cash 'lo(s inco,e state,ent state,ent o' retained earnings

&hich o' the 'ollo(ing 'inancial state,ents (ould sho( ho( 4uic-ly a hospitality operation could con)ert assets into cash+ a% b. c% d% inco,e state,ent balance sheet state,ent o' cash 'lo(s aging o' accounts paya*le report

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Cecil, the general ,anager o' a hotel, pic-s up a *alance sheet 'ro, the end o' the pre)ious 'iscal year, (hich ended >ece,*er 31% 5e is gathering in'or,ation to pro)e to creditors that the hotel is a*le to pay its de*ts% 8' the current date is 9uly 140 a. *% c% d% the balance sheet is too outdated to be helpful. the *alance sheet.s assets ,ay need to *e updated% Cecil ,ay use the *alance sheet 'or one$and$a$hal' ,ore ,onths, a'ter (hich the state,ent (ill *e useless% a 'e( corrections to the 'ootnotes ,ay *e all that is necessary to update the state,ent%

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All o' the 'ollo(ing ite,s are sho(n on the *alance sheet o' a hospitality co,pany e,ce(t/ a% *% c% d. accounts paya*le% accounts recei)a*le% purchased good (ill% customer loyalty value. Page 7 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

A,ong current assets, the category Cash includes all o' the 'ollo(ing e,ce(t/ a% b. c% d% chec-ing and sa)ings accounts% ban* accounts with restricted use. certi'icates o' deposit% house *an-s%

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All o' the 'ollo(ing are considered current lia*ilities e,ce(t/ a. *% c% d% deferred income taxes% ad)ance deposits on roo,s% paya*les resulting 'ro, the purchase o' ser)ices% o*ligations relating to 'i;ed asset purchases to *e paid in the current period%

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&hich o' the 'ollo(ing (ould *e included in the 8n)est,ents category on the *alance sheet+ a% b. c% d% all ,ar-eta*le securities property not currently used in operations notes recei)a*le due (ithin t(el)e ,onths leasehold i,pro)e,ents

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/he class o' assets on the *alance sheet that includes land, *uildings, and 'urnishings that are in use is0 a% b. c% d% 'i;ed assets% property and equipment. in)est,ents% lia*ilities%

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&hich o' the 'ollo(ing state,ents 6est su,,ari2es the role o' 'ootnotes on a *alance sheet+ a. *% c% d% /ootnotes should explain balance sheet figures and help users interpret the balance sheet% Footnotes should contradict *alance sheet in'or,ation% Footnotes are ,eant to pro)ide the details that the *alance sheet presents only in su,,ary 'or,% Footnotes so'ten the disclosure o' 'inancial state,ents%

10% &hich o' the 'ollo(ing state,ents a*out consolidated 'inancial state,ents is true7 a% *% c% d. Consolidated 'inancial state,ents ,a-e 'ootnotes unnecessary% Consolidated 'inancial state,ents are re4uired o' all co,panies in the <nited States% /he su*sidiaries o' corporations cease to *e separate legal entities (hen their parent corporations use consolidated 'inancial state,ents% 0enerally, most of the voting stoc* of a subsidiary should be owned by the holding company or by the same interests if the associated companies financial statements are to be combined.

Chapter " 1 Cash '(" *.+ )18

1% At the Seldo, 8nn, cash is deposited daily, e,ployees use a )oucher syste,, and cash$handling duties are segregated% /hese practices and policies are ,ost li-ely in place to achie)e0 a% b. c% d% high pro'ita*ility% internal control over assets. greater control o)er e;penses% greater accuracy in record-eeping%

Page 8 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

2%

All o' the 'ollo(ing (ould *e considered Cash or Cash =4ui)alents 'or accounting purposes e,ce(t/ a. *% c% d% furniture and fixtures. credit card slips% ,oney orders% certi'icates o' deposit%

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&hen a *ill is due to *e paid, an accounting e,ployee pulls a )oucher 'ro, the DDDDDDD 'ile and prepares a DDDDDDDDDD 'or the treasurer to sign% a% *% c% d. cash receipts7 chectic-ler7 )oucher registration7 report tic*ler+ chec*

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Petty cash is usually sho(n on the *alance sheet as0 a. *% c% d% 2ash. Petty Cash% a noncurrent asset% a lia*ility%

Ence a 'ir, esta*lishes a petty cash 'und, it has DDDDDDDDDDDD than it did *e'ore% a% *% c. d% ,ore o(ners. e4uity higher e;penses less money in demand deposits less li4uidity

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Cyril, a restaurant accountant, notices that there is a di''erence *et(een the *anstate,ent.s *alance and the *alance in the restaurant records 'or the restaurant.s account% All o' the 'ollo(ing are co,,on causes 'or this di''erence e,ce(t/ a% *% c. d% credits 'or interest earned or recei)a*les collected% :SF chec-s% allowances made for doubtful accounts% outstanding chec-s%

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/o prepare a *an- reconciliation, an accounting e,ployee ,ay ha)e to per'or, any o' the 'ollo(ing e,ce(t/ a% *% c% d. add deposits in transit to the *alance per *an-% deduct a,ounts o' :SF chec-s 'ro, the *alance per *oo-s% chec- the e4uality o' the ad1usted *an- *alance and the ad1usted *oo*alance% deduct interest earned from the balance per boo*s.

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&hen a supplier.s in)oice indicates ter,s o' 2@1 , n@30, and it has 1ust *een deli)ered, the hospitality 'ir, (ill ha)e to pay 'ull price i' pay,ent is not ,ade0 a% b. c% d% a'ter 2 days% after ,3 days. a'ter 30 days% (ithin the nu,*er o' days that it too- to ship the goods or supply the ser)ices purchased%

Page 9 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

C%

A restaurant su*,its credit card slips that total 61,000 to A,erican =;press 'or pay,ent% Suppose that A,erican =;press charges a 4 percent processing 'ee% /he a,ount the hotel (ill recei)e is0 a% b. c% d% 61,0!0% $450. 6C40% 640%

10% Cash 'orecasting is an aspect o' (hich o' the 'ollo(ing+ a% *% c% d. conducting audits preparing a *an- reconciliation collecting 'ranchise 'ees an integrated cash management system

Chapter 1# 1 Statement of Cash Flows '(" +!6 806

1% &hich o' the 'ollo(ing (ould 6est *e descri*ed as short$ter,, highly li4uid in)est,ents+ a% cash in'lo(s *% cash out'lo(s c. cash equivalents d% 'inancing acti)ities All o' the 'ollo(ing are sections o' the state,ent o' cash 'lo(s e,ce(t the0 a% Eperating Acti)ities section% b. $arning Activities section. c% Financing Acti)ities section% d% 8n)esting Acti)ities section% Proceeds 'ro, the issuance o' capital stoc- (ould appear under the DDDDDDDD section o' the state,ent o' cash 'lo(s% a% :oncash *% Eperating Acti)ities c. /inancing Activities d% =arning Acti)ities /he state,ent o' cash 'lo(s is prepared according to the DDDDDDDDDD *asis o' accounting% a% cash b. accrual c% dou*le$entry d% direct Accrued Payroll (as 610,000 and 61 ,000 at the *eginning and end o' 20F4, respecti)ely% /he payroll e;pense 'or 20F4 totaled 6 20,000% Cash out'lo( 'or payroll during 20F4 totaled0 a% 6 2 ,000% *% 6 20,000% c. $3,3,000. d% 6 10,000% Sales o' the 3andol' 8nn (ere 62,000,000 'or 20F3% Accounts 3ecei)a*leG/rade totaled 6140,000 and 61!0,000 at the *eginning and end o' 20F3, respecti)ely% &hat (ere the esti,ated cash receipts 'ro, sales 'or 20F3+ a% 62,020,000 *% 62,000,000 c. $,,460,000 d% 620,000

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Page 10 of 11

David Barnard

Financial Accounting

AC101 Chs1 1!"RSG"#C"$%&

Week 16 Revision Study Guide Review

#%

/he process o' preparing the 8n)esting Acti)ities section o' a state,ent o' cash 'lo(s in)ol)es a 'ocus on0 a% net inco,e 'ro, the inco,e state,ent% *% o(ners. e4uity 'ro, the state,ent o' retained earnings% c. noncurrent assets from the balance sheet. d% current assets 'ro, the *alance sheet% "% /he &ilson 8nn sold 10,000 shares o' 6 par )alue co,,on stoc- 'or 630 per share% 5o( ,uch (ould *e reported as sale o' co,,on stoc- on the state,ent o' cash 'lo(s+ a% 61 ,000 *% 6 0,000 c% 62 ,000 d. $300,000 C% /he 3i)er 5otel.s >i)idends Paya*le account at the *eginning and end o' 20F3 totaled 640,000 and 63 ,000, respecti)ely% Assu,e that di)idends declared during 20F3 totaled 6! ,000% /he di)idends paid *y the 3i)er 5otel during 20F3 totaled0 a. $-0,000. *% 6! ,000% c% 64 ,000% d% 61 ,000% 10% /he :oru,*ega Hilla 3esort sold in)est,ents that originally cost it 6300,000 'or 6200,000% 5o( (ould this transaction a''ect the 8n)esting Acti)ities section o' its state,ent o' cash 'lo(s+ a. as a $.00,000 cash inflow *% as a 6200,000 cash out'lo( c% as a 6200,000 noncash transaction d% no e''ect on the 8n)esting Acti)ities section

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