ACCT 304 DeVry Week 3 Complete Work Latest

Question 2. Question : (TCO 5) On August 1, 2011, Rocket Retailers adopted a plan to discontinue its catalog sales
division, which qualifies as a separate component of the business, according to GAAP, regarding discontinued
operations. The disposal of the division was expected to be concluded by June 30, 2012. On January 31, 2012, Rocket's
fiscal year end, the following information relative to the discontinued division was accumulated:
In its income statement for the year ended January 31, 2012, Rocket would report a before-tax loss on discontinued
operations of
$115,000.
$195,000.
$65,000.
$125,000.
Question 3. Question : (TCO 5) Changes in accounting estimates are reported
currently and prospectively.
retroactively and currently.
retroactively, currently, and prospectively.
by restating prior years.
Question 4. Question : (TCO 5) Which of the following is added to net income as an adjustment under the indirect
method of preparing the statement of cash flows?
Salaries payable decrease
Gain on the sale of land
Loss on the sale of equipment
Accounts receivable increase
Question 5. Question : (TCO 5) Review Rowdy's Restaurants cash flow (in millions):
Rowdy's would report net cash inflows (outflows) from financing activities in the amount of
$1,100.
$(1,100).
$820.
$900.