If the average maturity of assets is 4 years and the average maturity of liabilities is 4 years, then the FI has no interest rate risk exposure.

The direct method of preparing the statement of cash flows

A) results in more cash from operating activities, but less cash from investing activities, and the same total cash flow as the indirect method. B) converts each item on the income statement to its cash equivalent. C) reports interest and dividends received in the investing activities section. D) All of these choices.

Pia and Ramona are partners who share income in the ratio of 3:2. Their capital balances are $80,000 and $120,000 respectively. Income Summary has a credit balance of $40,000. What is Pia's capital balance after closing Income Summary to Capital?

A) $60,000 B) $104,000 C) $56,000 D) $64,000