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151For the year ended December 31, 2003, a corporation had

Question : 151For the year ended December 31, 2003, a corporation had : 1405493

 

 

151For the year ended December 31, 2003, a corporation had cash flow from operating activities of $12,000, cash flow from investment activities of -$10,000, and cash flow from financing activities of $4,000.  The Statement of Cash Flows would show a
Anet decrease of $18,000 in cash and marketable securities.

Bnet increase of $6,000 in cash and marketable securities.

Cnet increase of $2,000 in cash and marketable securities.

Dnet decrease of $6,000 in cash and marketable securities.

 

152A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise purchased during the year at a total cost of $150,500.  Although the firm paid in full for the merchandise during the year, it has yet to collect  at year end from the customer.  One possible problem this firm may face is
Alow profitability.
Binability to receive credit.

Cinsolvency.
Dhigh leverage.

 

153Capital cost allowance is
Acalculated in the year of acquisition using the half-year rule.

Bamortized on a declining balance basis.

Camortized using a pre-established CCA rate.

Dall of the above.

 

154Which of the following is a noncash expense added back to net income in determining cash flow from operating activities?
Aadministration
Bselling
Camortization
Dinterest

 

155The after-tax cost of a $40 can of paint to a company with a marginal tax rate of 40% is
A$24.
B$16.

C$40.
Dnot determinable.

 

156Capital losses can be 
Awritten off against only capital gains.
Bwritten off against all sources of income.

Ccannot be written off at all.
Dwritten off against only ordinary income.

 

157The small business deduction for eligible Canadian-controlled private corporations is 
A44%.
B7%.
C28%.
D16%.

 

158Corporate taxes are paid through 
Ahigher prices to the consumer.
Blower wages to workers.

Clower returns to the investor.
Dall of the above.

 

159The portion of the annual report where management provides analysis and explains the financial results is the 
Aauditors note to shareholders.
Bletter to shareholders.

Cmanagement's discussion and analysis.
Dall of the above

 

160The cost of capital
Ameasures the riskiness of a project or firm.

Bdepends on the type of assets being invested in.

Cprovides a hurdle for management in making capital budgeting decisions.

Dall of the above

 

161Capital budgeting is 
Athe methods used to value a real project.

Bthe methods used to determine a firm's hurdle rate for new projects.

Cnecessary whenever an executive wants to determine how to report earnings on the financial statements.

Dnot related to finance, but rather a marketing term.

 

162Dividends paid to a Canadian corporation by a Canadian corporation are
Aexempt from tax.

Btaxed as ordinary income.

Cgrossed up by 25% before calculating taxes and the dividend tax credit.

Dtaxed at 50% of the marginal tax rate.

 

163In Canada, the Board of Directors are generally 
Apoliticians or an appointee.

Bselected from a small group of inter-related people.

CAboriginal leaders and elders.

Dwomen.

 

164Since financial decisions usually involve new cash flows or changes in existing ones, the relevant tax rate is the
Aaverage tax rate.
Bgoing-concern tax rate.

Cmarginal tax rate.
DCCA tax rate.

 

 

 

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