Question 1

On the statement of cash flows, cash receipts of dividends are classified as operating activities under U.S. GAAP.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements concerning the statement of cash flows is true?

Accepted Answer

A)  When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows. 
B)  IFRS requires companies to classify all income taxes paid as operating cash outflows. 
C)  Companies may report the cash flows from purchases and sales of trading investments as cash flows from operating activities. 
D)  Under IFRS, the purchase of land by issuing common shares will be shown as a cash outflow under investing activities and a cash inflow under financing activities. 
A)  When pension expense exceeds cash funding, the difference is deducted from investing activities on the statement of cash flows. 
B)  IFRS requires companies to classify all income taxes paid as operating cash outflows. 
C)  Companies may report the cash flows from purchases and sales of trading investments as cash flows from operating activities. 
D)  Under IFRS, the purchase of land by issuing common shares will be shown as a cash outflow under investing activities and a cash inflow under financing activities.

Question 3

Which of the following is not included in the operating activities section of the cash flow statement under U.S. GAAP?

Accepted Answer

A)  payments of income taxes 
B)  payments of dividends 
C)  payments of interest 
D)  payments of executive salaries 
A)  payments of income taxes 
B)  payments of dividends 
C)  payments of interest 
D)  payments of executive salaries

Question 4

Explain the conceptual model for the statement of cash flows.

Accepted Answer

Firms can prepare the cash flows stateme

Question 5

How do U.S. GAAP and IFRS differ in measuring cash and cash equivalents?

Accepted Answer

The U.S. GAAP and IFRS definitions of ca

Question 6

Which of the following sections of the statement of cash flows includes cash flows that relate to the production and delivery of goods and services?

Accepted Answer

A)  financing activities section 
B)  operating activities section 
C)  funding activities section 
D)  investing activities section 
A)  financing activities section 
B)  operating activities section 
C)  funding activities section 
D)  investing activities section

Question 7

Which of the following is considered to be a part of cash and cash equivalents under IFRS, but not U.S. GAAP?

Accepted Answer

A)  treasury bills 
B)  bank overdrafts 
C)  commercial paper 
D)  money market funds 
A)  treasury bills 
B)  bank overdrafts 
C)  commercial paper 
D)  money market funds

Question 8

The conceptual model for the statement of cash flows is based on the accounting equation.

Accepted Answer

A) True 
 B)False

Question 9

The total amount of share-based compensation expense and pension expense must be added to net income to determine cash flows from operations under the indirect method.

Accepted Answer

A) True 
 B)False

Question 10

Changes in which of the following are included in operating activities on the statement of cash flows?

Accepted Answer

A)  accounts payable 
B)  bonds payable 
C)  treasury stock 
D)  property, plant, and equipment 
A)  accounts payable 
B)  bonds payable 
C)  treasury stock 
D)  property, plant, and equipment

Question 11

Which of the following is not a cash equivalent?

Accepted Answer

A)  accounts receivable expected to be collected in 30 days 
B)  treasury bill with a maturity of 2 months 
C)  commercial paper maturing in 45 days 
D)  mutual fund deposits 
A)  accounts receivable expected to be collected in 30 days 
B)  treasury bill with a maturity of 2 months 
C)  commercial paper maturing in 45 days 
D)  mutual fund deposits

Question 12

Under the indirect method, which of the following would be added to net income when determining net cash flows from operations?

Accepted Answer

A)  gain on the sale of a used truck 
B)  amortization expense 
C)  increase in inventory 
D)  decrease in accounts payable 
A)  gain on the sale of a used truck 
B)  amortization expense 
C)  increase in inventory 
D)  decrease in accounts payable

Question 13

Even if the firm uses the indirect method for the statement of cash flows, it must disclose the total amount of income taxes paid during the period.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true?

Accepted Answer

A)  Standard setters encourage the use of the direct method over the indirect method. 
B)  The direct method is known as the reconciliation method. 
C)  Under U.S. GAAP, the indirect method starts with income before income taxes. 
D)  All of these statements are true. 
A)  Standard setters encourage the use of the direct method over the indirect method. 
B)  The direct method is known as the reconciliation method. 
C)  Under U.S. GAAP, the indirect method starts with income before income taxes. 
D)  All of these statements are true.

On the statement of cash flows, cash receipts of dividends are classified as operating activities under U.S. GAAP.

Which of the following statements concerning the statement of cash flows is true?

Which of the following is not included in the operating activities section of the cash flow statement under U.S. GAAP?

Explain the conceptual model for the statement of cash flows.

How do U.S. GAAP and IFRS differ in measuring cash and cash equivalents?

Which of the following sections of the statement of cash flows includes cash flows that relate to the production and delivery of goods and services?

Which of the following is considered to be a part of cash and cash equivalents under IFRS, but not U.S. GAAP?

The conceptual model for the statement of cash flows is based on the accounting equation.

The total amount of share-based compensation expense and pension expense must be added to net income to determine cash flows from operations under the indirect method.

Changes in which of the following are included in operating activities on the statement of cash flows?

Which of the following is not a cash equivalent?

Under the indirect method, which of the following would be added to net income when determining net cash flows from operations?

Even if the firm uses the indirect method for the statement of cash flows, it must disclose the total amount of income taxes paid during the period.

Which of the following statements is true?

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters

Exam 22: The Statement of Cash Flows

On the statement of cash flows, cash receipts of dividends are classified as operating activities under U.S. GAAP.

Which of the following statements concerning the statement of cash flows is true?

Which of the following is not included in the operating activities section of the cash flow statement under U.S. GAAP?

Explain the conceptual model for the statement of cash flows.

How do U.S. GAAP and IFRS differ in measuring cash and cash equivalents?

Which of the following sections of the statement of cash flows includes cash flows that relate to the production and delivery of goods and services?

Which of the following is considered to be a part of cash and cash equivalents under IFRS, but not U.S. GAAP?

The conceptual model for the statement of cash flows is based on the accounting equation.

The total amount of share-based compensation expense and pension expense must be added to net income to determine cash flows from operations under the indirect method.

Changes in which of the following are included in operating activities on the statement of cash flows?

Which of the following is not a cash equivalent?

Under the indirect method, which of the following would be added to net income when determining net cash flows from operations?

Even if the firm uses the indirect method for the statement of cash flows, it must disclose the total amount of income taxes paid during the period.

Which of the following statements is true?

The Financial Reporting Environment

Financial Reporting Theory

Judgment and Applied Financial Accounting Research

Review of the Accounting Cycle

Statements of Net Income and Comprehensive Net Income

Statements of Financial Position and Cash Flows and the Annual Report

Accounting and the Time Value of Money

Revenue Recognition

Extenssion: Ol Revenue Recognition Previous Standard

Short-Term Operating Assets: Cash and Receivables

Short-Term Operating Assets: Inventory

Long-Term Operating Assets: Acquisition, Cost Allocation

Long-Term Operating Assets: Departures From Historical Cost

Operating Liabilities and Contingencies

Financing Liabilities

Accounting for Stockholders Equity

Investing Assets

Accounting for Income Taxes

Accounting for Leases

Extension: Ol Accounting for Leases Current Standard

Accounting for Employee Compensation and Benefits

Earnings Per Share

Accounting Corrections and Error Analysis

Filters