Question 1

Transactions that provide cash to the business to carry on its activities are

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash.

Question 2

In the ____________________ activities section of the statement of cash flows,net income is adjusted for the amortization of the premium on bonds payable.

Accepted Answer

The answer of In the ____________________ activities section of the...

Question 3

Based only on the information provided,prepare the final three lines of Magalog Distributing's Statement of Cash Flows.Assume cash from financing and investing activities were zero during the period indicated.

Accepted Answer

The answer of Based only on the information provided,prepare the...

Question 4

The resale of treasury stock is classified as a cash inflow from financing activities.

Accepted Answer

A) True 
 B)False

Question 5

Operating activities include

Accepted Answer

A)  collection of accounts receivable. 
B)  purchases of plant and equipment for cash. 
C)  issuance of common stock. 
D)  payment of dividends to shareholders. 
A)  collection of accounts receivable. 
B)  purchases of plant and equipment for cash. 
C)  issuance of common stock. 
D)  payment of dividends to shareholders.

Question 6

Operating activities include all except

Accepted Answer

A)  collection of accounts receivable. 
B)  payment of wages. 
C)  decrease in accounts payable. 
D)  payment of dividends to shareholders. 
A)  collection of accounts receivable. 
B)  payment of wages. 
C)  decrease in accounts payable. 
D)  payment of dividends to shareholders.

Question 7

The statement of cash flows provides information about cash flows from operating activities,investing activities,and financing activities.

Accepted Answer

A) True 
 B)False

Question 8

A decrease in current liabilities is:

Accepted Answer

A)  a source of cash under operating activities. 
B)  a use of cash under operating activities. 
C)  not reported on the statement of cash flows. 
D)  a use of cash under investing activities. 
A)  a source of cash under operating activities. 
B)  a use of cash under operating activities. 
C)  not reported on the statement of cash flows. 
D)  a use of cash under investing activities.

Question 9

Additional information:
Equipment costing $100,000 was sold for $70,000.Accumulated depreciation on this equipment was $20,000.
Dividends of $38,000 were declared and paid.
Bonds were issued at face value of $300,000.
Common stock of $55,000 was issued to acquire land.
Investments (stock in IBM)were purchased for $275,000.
Using the information provided,prepare the cash flows from investing activities for The Dolmen Company.

Accepted Answer

The answer of       ...

Question 10

The current assets and liabilities of the Lionel Corporation on December 31,2016 and 2015,are listed below.Lionel's net income for 2016 was $75,000.Included in its expenses was depreciation of $17,000.Prepare a schedule of cash flows from operating activities for 2016.

Accepted Answer

The answer of The current assets and liabilities of the...

Question 11

Transactions for the acquisition or disposal of long-term assets are

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash.

Question 12

A corporation received $50,000 in cash when it sold a building and paid $90,000 in cash when it purchased some new machinery.As a result,the statement of cash flows would report

Accepted Answer

A)  $40,000 as the net cash used in financing activities. 
B)  $40,000 as the net cash provided by investing activities. 
C)  $40,000 as the net cash used in investing activities. 
D)  $40,000 as the net cash provided by financing activities. 
A)  $40,000 as the net cash used in financing activities. 
B)  $40,000 as the net cash provided by investing activities. 
C)  $40,000 as the net cash used in investing activities. 
D)  $40,000 as the net cash provided by financing activities.

Question 13

A corporation received $80,000 in cash when it sold a building and paid $50,000 in cash when it purchased some new machinery.As a result,the statement of cash flows would report

Accepted Answer

A)  $30,000 as the net cash used in financing activities. 
B)  $30,000 as the net cash provided by investing activities. 
C)  $30,000 as the net cash used in investing activities. 
D)  $30,000 as the net cash provided by financing activities. 
A)  $30,000 as the net cash used in financing activities. 
B)  $30,000 as the net cash provided by investing activities. 
C)  $30,000 as the net cash used in investing activities. 
D)  $30,000 as the net cash provided by financing activities.

Question 14

If a corporation issued stock for $70,000 in cash,received $10,000 in cash from a long-term loan,and paid cash dividends totaling $20,000,the net cash provided by its financing activities would be ___________________.

Accepted Answer

The answer of If a corporation issued stock for $70,000...

Question 15

Financing activities include all of the following except:

Accepted Answer

A)  payment of dividends to shareholders. 
B)  purchases of plant and equipment for cash. 
C)  receipt of cash upon the issuance of bonds. 
D)  repurchase of company stock. 
A)  payment of dividends to shareholders. 
B)  purchases of plant and equipment for cash. 
C)  receipt of cash upon the issuance of bonds. 
D)  repurchase of company stock.

Question 16

Define cash equivalents and list three examples other than coin,currency,and bank accounts.

Accepted Answer

Cash equivalents are included in cash on

Question 17

If the income statement reflects a net loss for the year,the loss is not reported under cash flows from operating activities in the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 18

Purchases and sales of land,buildings,and equipment for cash are shown as ____________________ activities on the statement of cash flows.

Accepted Answer

The answer of Purchases and sales of land,buildings,and equipment for...

Question 19

How might management utilize the Statement of Cash Flows in evaluating operations?

Accepted Answer

The information provided in the statemen

Question 20

Corporations do not commonly use the direct method for the Statement of Cash Flows because

Accepted Answer

A)  of the many additional disclosures and schedules that must accompany the statement. 
B)  the FASB prefers the indirect method. 
C)  the direct method does not follow GAAP. 
D)  there are fewer disclosures required under the indirect method. 
A)  of the many additional disclosures and schedules that must accompany the statement. 
B)  the FASB prefers the indirect method. 
C)  the direct method does not follow GAAP. 
D)  there are fewer disclosures required under the indirect method.

Exam 24: The Statement of Cash Flows

Transactions that provide cash to the business to carry on its activities are

In the ____________________ activities section of the statement of cash flows,net income is adjusted for the amortization of the premium on bonds payable.

Based only on the information provided,prepare the final three lines of Magalog Distributing's Statement of Cash Flows.Assume cash from financing and investing activities were zero during the period indicated.

The resale of treasury stock is classified as a cash inflow from financing activities.

Operating activities include

Operating activities include all except

The statement of cash flows provides information about cash flows from operating activities,investing activities,and financing activities.

A decrease in current liabilities is:

The current assets and liabilities of the Lionel Corporation on December 31,2016 and 2015,are listed below.Lionel's net income for 2016 was $75,000.Included in its expenses was depreciation of $17,000.Prepare a schedule of cash flows from operating activities for 2016.

Transactions for the acquisition or disposal of long-term assets are

A corporation received $50,000 in cash when it sold a building and paid $90,000 in cash when it purchased some new machinery.As a result,the statement of cash flows would report

A corporation received $80,000 in cash when it sold a building and paid $50,000 in cash when it purchased some new machinery.As a result,the statement of cash flows would report

If a corporation issued stock for $70,000 in cash,received $10,000 in cash from a long-term loan,and paid cash dividends totaling $20,000,the net cash provided by its financing activities would be ___________________.

Financing activities include all of the following except:

Define cash equivalents and list three examples other than coin,currency,and bank accounts.

If the income statement reflects a net loss for the year,the loss is not reported under cash flows from operating activities in the statement of cash flows.

Purchases and sales of land,buildings,and equipment for cash are shown as ____________________ activities on the statement of cash flows.

How might management utilize the Statement of Cash Flows in evaluating operations?

Corporations do not commonly use the direct method for the Statement of Cash Flows because

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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