Question 1

Explain how cash flows from investing and financing activities are determined.

Accepted Answer

Cash flows from investing and financing

Question 2

A gain on the disposal of a non-current asset

Accepted Answer

A) Involves cash inflows 
B) Involves cash outflows 
C) Does not reflect any cash flow and is the result of an investing activity 
D) Is the result of an investing activity 
E) Does not reflect any cash flow 
A) Involves cash inflows 
B) Involves cash outflows 
C) Does not reflect any cash flow and is the result of an investing activity 
D) Is the result of an investing activity 
E) Does not reflect any cash flow

Question 3

Reporting of financing activities is the same under both the direct and the indirect methods.

Accepted Answer

A) True 
 B)False

Question 4

The indirect method for preparation of the statement of cash flows calculates the net cash inflows (outflows)from operating activities by adjusting accrual profit to a cash basis.

Accepted Answer

A) True 
 B)False

Question 5

Burton purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 6

Use the following information about the calendar 2021 cash flows of Grandeux Corp.to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.
 $\begin{array}{|l|r|}
\hline \text { Cash and cash equivalents balance, December 31,2020 } & 12,000 \
\hline \text { Cash and cash equivalents balance, December 31,2021 } & 43,500 \
\hline \text { Cash payments for merchandise } & 60,500 \
\hline \text { Cash paid for store equipment } & 30,500 \
\hline \text { Cash borrowed on 3-month note payable } & 23,000 \\hline \text { Cash dividends paid } & 6,000 \
\hline \text { Cash paid for salaries } & 66,000 \
\hline \text { Cash payments for other expenses } & 32,000 \
\hline \text { Building purchased and financed by long-term note payable } & 52,000 \
\hline \text { Cash received from customers } & 157,000 \
\hline \text { Cash dividends received from share investments } & 46,500\
\hline
\end{array}$

Accepted Answer

The answer of Use the following information about the calendar...

Question 7

The appropriate statement of cash flows activity category for the purchase of land in exchange for common shares 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 8

On the cash flow statement,which of the following would equal cash paid for salaries?

Accepted Answer

A) Salaries Payable plus change in cash 
B) Salaries Expense plus change in Salaries Payable 
C) Salaries Expense plus ending balance in Salaries Payable 
D) Salaries Expense plus beginning balance in salaries Payable 
A) Salaries Payable plus change in cash 
B) Salaries Expense plus change in Salaries Payable 
C) Salaries Expense plus ending balance in Salaries Payable 
D) Salaries Expense plus beginning balance in salaries Payable

Question 9

The appropriate statement of cash flow activity category for the payment of wages 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 10

From the following information,prepare a schedule of noncash investing and financing activities:
 (a) Sale of a building with a book value of $ \$ 145,000 $ for $ \$ 195,000 $ and land with a book value of $ \$ 132,000 $ for $ \$ 65,000 $.
(b) Issuance of 5,000 shares in exchange for equipment with a fair value of $ \$ 110,000 $.
(c) Retirement of a $ \$ 140,000,10 \% $ bond by issuing another $ \$ 140,000,12 \% $ bond issue.
(d) Acquisition of land by issuing a 10 -year, $ 12 \% $ note payable for $ \$ 144,000 $.

Accepted Answer

Schedule of noncash

Question 11

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

Accepted Answer

A) True 
 B)False

Question 12

Using the indirect method to calculate the net cash provided (or used)by operating activities,profit is adjusted for

Accepted Answer

A) Gains and losses from investing and financing activities 
B) Revenues and expenses that did not provide or use cash 
C) Changes in noncash current assets and current liabilities related to operating activities 
D) Gains and losses from investing and financing activities and revenues and expenses that did not provide or use cash 
E) All of these 
A) Gains and losses from investing and financing activities 
B) Revenues and expenses that did not provide or use cash 
C) Changes in noncash current assets and current liabilities related to operating activities 
D) Gains and losses from investing and financing activities and revenues and expenses that did not provide or use cash 
E) All of these

Question 13

Under the direct method,the gain or loss from retirement of debt is reported in the operating section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Explain how cash flows from investing and financing activities are determined.

A gain on the disposal of a non-current asset

Reporting of financing activities is the same under both the direct and the indirect methods.

The indirect method for preparation of the statement of cash flows calculates the net cash inflows (outflows)from operating activities by adjusting accrual profit to a cash basis.

Burton purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows.

The appropriate statement of cash flows activity category for the purchase of land in exchange for common shares is

On the cash flow statement,which of the following would equal cash paid for salaries?

The appropriate statement of cash flow activity category for the payment of wages is

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

Using the indirect method to calculate the net cash provided (or used)by operating activities,profit is adjusted for

Under the direct method,the gain or loss from retirement of debt is reported in the operating section of the statement of cash flows.

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

Explain how cash flows from investing and financing activities are determined.

A gain on the disposal of a non-current asset

Reporting of financing activities is the same under both the direct and the indirect methods.

The indirect method for preparation of the statement of cash flows calculates the net cash inflows (outflows)from operating activities by adjusting accrual profit to a cash basis.

Burton purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows.

The appropriate statement of cash flows activity category for the purchase of land in exchange for common shares is

On the cash flow statement,which of the following would equal cash paid for salaries?

The appropriate statement of cash flow activity category for the payment of wages is

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

Using the indirect method to calculate the net cash provided (or used)by operating activities,profit is adjusted for

Under the direct method,the gain or loss from retirement of debt is reported in the operating section of the statement of cash flows.

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

Filters