$800,000

$500,000

$1,300,000

$200,000

Operating activity

Financing activity.

Investing activity.

Noncash financing and investing activity

Quarterly financial statements are prepared

Cash is received.

The sale occurs.

Production is completed.

$1,820,000

$1,780,000

$1,680,000

$1,720,000

Decrease in inventory.

Increase in income tax payable.

Decrease in prepaid insurance.

Purchase of land and building in exchange for a long-term note.

$1,610,000

$1,480,000

$1,650,000

$1,500,000

Do not include the effect of a mistake in the application of accounting principles, as this is accounted for as a change in accounting principle rather than as a prior-period adjustment.

Do not require further disclosure in the body of the financial statements.

Do not affect the presentation of prior-period comparative financial statements.

Are reflected as adjustments of the opening balance of the retained earnings of the earliest period presented.

$468,500 and $470,900, respectively.

$468,500 and $439,500, respectively

$646,500 and $617,500, respectively.

$460,500 and $489,500, respectively.

$100,000

$150,000

$160,000

$175,000

I, II, and III only.

I and II only.

I and IV only.

III and IV only.

Operating and nonoperating cash flow information.

Purchasing a building by giving a mortgage to the seller.

Conversion of debt to equity.

Acquiring an asset through a capital lease.

The change in net assets for the period excluding owner transactions.

Net income excluding extraordinary gains and losses.

Total revenues minus total expenses.

The change in net assets for the period including contributions by owners and distributions to owners.

The impact on earnings per share will not be as great.

The par value per share will remain unchanged.

It will not decrease shareholders’ equity.

It will not impair the company’s ability to pay dividends in the future.

Managerial accounting need not follow generally accepted accounting principles (GAAP), while financial accounting must follow them.

Managerial accounting has a past focus, and financial accounting has a future focus.

The emphasis on managerial accounting is relevance, and the emphasis on financial accounting is timeliness.

Managerial accounting is generally more precise.

Format of the statement of cash flows.

Direct method of calculating net cash provided or used by operating activities.

Cash method of determining income in conformity with generally accepted accounting principles.

Indirect method of calculating net cash provided or used by operating activities.