Exam 12: Statement of Cash Flows

During the current year,Woodson paid $9,000 which it owed from its prior year income tax liability and $60,000 for its current year tax liability.The company still owes $12,000 at the end of the current year.How much should the company report as cash paid for income taxes on its statement of cash flows for the current year?

A company loaned $1,000,000 with interest at 7% to another company.The interest revenue from this loan would be reported on the statement of cash flows as a:

The payment of salaries and wages would be reported as an operating activity on the statement of cash flows.

When the direct method is used to determine the cash flows from operating activities,which of the following adjustments must be made to income tax expense to determine total income tax payments?

When preparing the operating activities section of the statement of cash flows using the indirect method,an increase in Income Taxes Payable is added to net income.

The repayment of the principal of a loan which had been used to finance the purchase of equipment should be reported on the statement of cash flows as a:

Assume a company uses the direct method to prepare its statement of cash flows.If the company's inventory and accounts payable both increase during the accounting period,how would these changes affect cash flow calculations?

The starting point for preparing the operating activities section using the indirect method is:

Investing activities include receiving cash from the sale of land and also the resulting gain or loss on the sale.

The reporting of financing activities is identical under the indirect and direct methods for the statement of cash flows on the statement of cash flows.

Marion Manufacturing had the following cash flows for the current year.The company uses the direct method in preparing the statement of cash flows. If the cash balance at the beginning of the current year was $0,what is the amount of cash at the end of the year?

Assume a company uses the direct method to prepare its statement of cash flows.If the company's Accounts Receivable increase during the accounting period,the change in Accounts Receivable is:

Which of the following is the best measure of a company's profitability?

A company bought $250,000 of equipment with an expected life of ten years and no residual value.After six years the company sold the equipment for $94,000.If the company uses straight-line depreciation and the indirect method is used to determine cash flows from operating activities,which of the following reflects how the sale of the equipment would be reported in the statement of cash flows?

Which of the following statements best describes the reason Depreciation Expense is added to net income when preparing the statement of cash flows?

To determine net cash provided by or used in financing activities,one must analyze the:

St.Pierre Enterprises reported the following information in its financial statements: What is the amount of cash payments made to suppliers during the current year?

Suppose a company generally records revenues and expenses before receiving or making cash payments.Which of the following statements is not correct?

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Which related balance sheet account will explain the difference between revenues on the income statement and cash collected from customers?

Equipment with a cost of $20,000 and a book value of $6,000 was sold during the year for cash of $18,000.Additional equipment was purchased during the year for cash. The company uses the indirect method in preparing the statement of cash flows.What is the amount of depreciation expense that will be reported in the operating activities section of the statement?