Question 1

Identify the impact of non-current asset transactions on cash flows.

Accepted Answer

The acquisition and disposal o

Question 2

The statement of cash flows is

Accepted Answer

A) Another name for the statement of financial position 
B) A financial statement that reports the cash inflows and outflows for an accounting period 
C) A financial statement that presents information about what happened to equity during a period 
D) A financial statement that lists the types and amounts of assets,liabilities,and equity of a business on a specific date 
E) A financial statement that lists the types and amounts of the revenues and expenses of a business 
A) Another name for the statement of financial position 
B) A financial statement that reports the cash inflows and outflows for an accounting period 
C) A financial statement that presents information about what happened to equity during a period 
D) A financial statement that lists the types and amounts of assets,liabilities,and equity of a business on a specific date 
E) A financial statement that lists the types and amounts of the revenues and expenses of a business

Question 3

For each of the following independent cases,use the information provided to calculate the missing cash inflow/outflow:

Accepted Answer

The answer of For each of the following independent cases,use...

Question 4

Examine each of the following transactions (1)through (5).Determine where each should be reported on a statement of cash flows.The possible locations are identified by items (a)through (e).(1)Equity securities of another company were accepted in exchange for a copyright.(2)Received cash dividends.(3)Proceeds from the sale (discounting)of a loan made by the business.(4)Purchased treasury shares.(5)Received a settlement on a lawsuit.A - Operating activities.B - Investing activities.C - Financing activities.D - Schedule of noncash financing and investing activities.E - Not reported on the statement of cash flows.

Accepted Answer

A) 1 = C; 2 = B; 3 = A; 4 = B; 5 = A 
B) 1 = B; 2 = A; 3 = C; 4 = B; 5 = E 
C) 1 = D; 2 = A; 3 = B; 4 = C; 5 = A 
D) 1 = C; 2 = C; 3 = B; 4 = C; 5 = E 
E) 1 = D; 2 = A; 3 = A; 4 = B; 5 = E 
A) 1 = C; 2 = B; 3 = A; 4 = B; 5 = A 
B) 1 = B; 2 = A; 3 = C; 4 = B; 5 = E 
C) 1 = D; 2 = A; 3 = B; 4 = C; 5 = A 
D) 1 = C; 2 = C; 3 = B; 4 = C; 5 = E 
E) 1 = D; 2 = A; 3 = A; 4 = B; 5 = E

Question 5

The increase or decrease in cash equals the current period's cash balance minus the prior period's cash balance.

Accepted Answer

A) True 
 B)False

Question 6

Under the indirect method,decreases in non-cash current assets are added to profit.

Accepted Answer

A) True 
 B)False

Question 7

Under IFRS,the payment of cash dividends to shareholders can be classified as either a financing activity or operating activity.

Accepted Answer

A) True 
 B)False

Question 8

The indirect method for the preparation of the operating activities section of the statement of cash flows

Accepted Answer

A) Separately lists each major item of operating cash receipts 
B) Separately lists each major item of operating cash payments 
C) Reports profit and then adjusts it for items necessary to determine net cash provided or used by operating activities 
D) Separately lists each major item of operating cash receipts and payments 
E) All of these 
A) Separately lists each major item of operating cash receipts 
B) Separately lists each major item of operating cash payments 
C) Reports profit and then adjusts it for items necessary to determine net cash provided or used by operating activities 
D) Separately lists each major item of operating cash receipts and payments 
E) All of these

Question 9

The sale of equipment increases investing cash flows.

Accepted Answer

A) True 
 B)False

Question 10

If accounts receivable have a positive effect on cash flow that is because accounts receivable increased during the year.

Accepted Answer

A) True 
 B)False

Question 11

Airqon Co.'s income statement showed the following for the year ended December 31,2021: profit,$89,000; depreciation expense,$42,000; and gain on sale of plant assets,$6,000.An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $5,500; merchandise inventory increased $7,200; prepaid expenses increased $55,600; accounts payable decreased $3,300.Using the indirect method,calculate the net cash provided (or used)by operating activities.

Accepted Answer

The answer of Airqon Co.'s income statement showed the following...

Question 12

Use the indirect method to calculate the net cash provided (or used)by operating activities based on the following information: $\begin{array}{|l|r|}
\hline \text { Profit } & \$ 60,000 \
\hline \text { Depreciation expense } & 7,200 \
\hline \text { Gain on sale of land } & 14,000 \
\hline \text { Decrease in inventory } & 3,500 \
\hline \text { Increase in accounts payable } & 5,500 \
\hline \text { Cash from land sale } & 9,200 \
\hline
\end{array}$

Accepted Answer

A) $62,200 
B) $14,000 
C) $21,200 
D) $14,700 
E) $9,200 
A) $62,200 
B) $14,000 
C) $21,200 
D) $14,700 
E) $9,200

Question 13

Describe the steps involved in the preparation of the statement of cash flows.

Accepted Answer

The preparation of the statement of cash

Question 14

A noncash purchase of land is reported in the investing section of the statement of cash flows as a separate line item.

Accepted Answer

A) True 
 B)False

Question 15

Acquisitions of non-current assets

Accepted Answer

A) Have no impact on cash flows 
B) Are investing activities 
C) Can involve cash outflows 
D) Are investing activities and can involve cash outflows 
E) Have no impact on cash flows and are investing activities 
A) Have no impact on cash flows 
B) Are investing activities 
C) Can involve cash outflows 
D) Are investing activities and can involve cash outflows 
E) Have no impact on cash flows and are investing activities

Question 16

Conversion of preferred shares to common shares is disclosed in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 17

The purchase of non-current assets by issuing a note payable is reported on the statement of cash flows in the

Accepted Answer

A) Operating section 
B) Financing section 
C) Investing section 
D) Notes to the statement of cash flows 
E) Both financing and investing sections 
A) Operating section 
B) Financing section 
C) Investing section 
D) Notes to the statement of cash flows 
E) Both financing and investing sections

Question 18

Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called

Accepted Answer

A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Direct activities 
E) Indirect activities 
A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Direct activities 
E) Indirect activities

Question 19

The usual statement of cash flow activity category for the receipt of cash dividends from share investments is

Accepted Answer

A) Operating 
B) Financing 
C) Investing 
D) Schedule of noncash investing or financing activity 
E) Not reported on the statement of cash flows 
A) Operating 
B) Financing 
C) Investing 
D) Schedule of noncash investing or financing activity 
E) Not reported on the statement of cash flows

Question 20

Calculate (1)the cost of goods purchased and (2)the cash paid for merchandise based on the following information provided about the operations of Green Company.

Accepted Answer

The answer of Calculate (1)the cost of goods purchased and...

Identify the impact of non-current asset transactions on cash flows.

The statement of cash flows is

For each of the following independent cases,use the information provided to calculate the missing cash inflow/outflow:

The increase or decrease in cash equals the current period's cash balance minus the prior period's cash balance.

Under the indirect method,decreases in non-cash current assets are added to profit.

Under IFRS,the payment of cash dividends to shareholders can be classified as either a financing activity or operating activity.

The indirect method for the preparation of the operating activities section of the statement of cash flows

The sale of equipment increases investing cash flows.

If accounts receivable have a positive effect on cash flow that is because accounts receivable increased during the year.

Use the indirect method to calculate the net cash provided (or used)by operating activities based on the following information: Profit \ 60,000 Depreciation expense 7,200 Gain on sale of land 14,000 Decrease in inventory 3,500 Increase in accounts payable 5,500 Cash from land sale 9,200

Describe the steps involved in the preparation of the statement of cash flows.

A noncash purchase of land is reported in the investing section of the statement of cash flows as a separate line item.

Acquisitions of non-current assets

Conversion of preferred shares to common shares is disclosed in the financing section of the statement of cash flows.

The purchase of non-current assets by issuing a note payable is reported on the statement of cash flows in the

Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called

The usual statement of cash flow activity category for the receipt of cash dividends from share investments is

Calculate (1)the cost of goods purchased and (2)the cash paid for merchandise based on the following information provided about the operations of Green Company.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Analyzing Financial Statements

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Exam 8: Reporting and Analyzing Cash Flows

Identify the impact of non-current asset transactions on cash flows.

The statement of cash flows is

For each of the following independent cases,use the information provided to calculate the missing cash inflow/outflow:

The increase or decrease in cash equals the current period's cash balance minus the prior period's cash balance.

Under the indirect method,decreases in non-cash current assets are added to profit.

Under IFRS,the payment of cash dividends to shareholders can be classified as either a financing activity or operating activity.

The indirect method for the preparation of the operating activities section of the statement of cash flows

The sale of equipment increases investing cash flows.

If accounts receivable have a positive effect on cash flow that is because accounts receivable increased during the year.

Use the indirect method to calculate the net cash provided (or used)by operating activities based on the following information: Profit \ 60,000 Depreciation expense 7,200 Gain on sale of land 14,000 Decrease in inventory 3,500 Increase in accounts payable 5,500 Cash from land sale 9,200

Describe the steps involved in the preparation of the statement of cash flows.

A noncash purchase of land is reported in the investing section of the statement of cash flows as a separate line item.

Acquisitions of non-current assets

Conversion of preferred shares to common shares is disclosed in the financing section of the statement of cash flows.

The purchase of non-current assets by issuing a note payable is reported on the statement of cash flows in the

Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called

The usual statement of cash flow activity category for the receipt of cash dividends from share investments is

Calculate (1)the cost of goods purchased and (2)the cash paid for merchandise based on the following information provided about the operations of Green Company.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Analyzing Financial Statements

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