Question 1

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

Accepted Answer

A) True 
 B)False

Question 2

Of the following,which one affects cash during a period?

Accepted Answer

A) The declaration of a stock dividend. 
B) Writing off an uncollectible account receivable. 
C) The declaration of a cash dividend. 
D) An adjusting entry recognizing the expiration of prepaid insurance. 
E) The payment of interest expense accrued in a previous accounting period. 
A) The declaration of a stock dividend. 
B) Writing off an uncollectible account receivable. 
C) The declaration of a cash dividend. 
D) An adjusting entry recognizing the expiration of prepaid insurance. 
E) The payment of interest expense accrued in a previous accounting period.

Question 3

The purchase of stock in another company is classified as a financing activity.

Accepted Answer

A) True 
 B)False

Question 4

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Noncash activities. 
E) This is not reported in the statement of cash flows. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Noncash activities. 
E) This is not reported in the statement of cash flows.

Question 5

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash investing or financing activity. 
E) This is not reported on the statement of cash flows. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash investing or financing activity. 
E) This is not reported on the statement of cash flows.

Question 6

A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2.Its net operating cash flow for Year 1 was $35,667 and $35,790 for Year 2.Calculate the cash flow on total assets ratio for both years.Comment on the results.

Accepted Answer

The answer of A corporation reported average total assets in...

Question 7

Use the following information to calculate cash paid for salaries:

Accepted Answer

A) $175,000. 
B) $183,000. 
C) $167,000. 
D) $143,000. 
E) $155,000. 
A) $175,000. 
B) $183,000. 
C) $167,000. 
D) $143,000. 
E) $155,000.

Question 8

The cash flow on total assets ratio compared to the total assets ratio can be used as an indicator of earnings quality.

Accepted Answer

A) True 
 B)False

Question 9

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

Accepted Answer

A) True 
 B)False

Question 10

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

Accepted Answer

A) Historical cost principle. 
B) Materiality principle. 
C) Full disclosure principle. 
D) Going concern principle. 
E) Business entity principle. 
A) Historical cost principle. 
B) Materiality principle. 
C) Full disclosure principle. 
D) Going concern principle. 
E) Business entity principle.

Question 11

The following information is available for the Brookstone Company:
     Additional information:
(1)There was no gain or loss on the sales of the long-term investments,nor on the bonds retired.
(2)Old machinery with an original cost of $45,060 was sold for $2,520 cash.
(3)New machinery was purchased for $81,060 cash.
(4)Cash dividends of $40,320 were paid.
(5)Additional shares of stock were issued for cash.
Prepare a complete statement of cash flows for calendar-year 20X2 using the indirect method.

Accepted Answer

@#IMG-DLM& (a)Received from sales of lon

Question 12

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

Accepted Answer

A spreadsheet can help organize the info

Question 13

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

The cash flow on total assets ratio reflects actual cash flows and is therefore affected by income recognition and measurement.

Accepted Answer

A) True 
 B)False

Question 15

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

Accepted Answer

note; schedule inclu

Question 16

Typical cash flows from investing activities include each of the following except:

Accepted Answer

A) Payments to purchase property,plant and equipment or other productive assets (excluding inventory). 
B) Proceeds from collecting the principal amount of accounts receivable arising from customer sales. 
C) Payments to buy intangible assets. 
D) Payments to acquire held-to maturity securities of other entities,except cash equivalents. 
E) Proceeds from the sale of equipment. 
A) Payments to purchase property,plant and equipment or other productive assets (excluding inventory). 
B) Proceeds from collecting the principal amount of accounts receivable arising from customer sales. 
C) Payments to buy intangible assets. 
D) Payments to acquire held-to maturity securities of other entities,except cash equivalents. 
E) Proceeds from the sale of equipment.

Question 17

When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating losses are subtracted from net income.

Accepted Answer

A) True 
 B)False

Question 18

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Accepted Answer

A) True 
 B)False

Question 19

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2.Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2.Calculate its cash flow on total assets ratio for both years.Comment on the results.

Accepted Answer

The answer of A company reported average total assets of...

Question 20

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 net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
D) Is required if the company is a merchandiser. 
E) Must not be used in all circumstances. 
A) Separately lists each major item of operating cash receipts. 
B) Separately lists each major item of operating cash payments. 
C) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
D) Is required if the company is a merchandiser. 
E) Must not be used in all circumstances.

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

Of the following,which one affects cash during a period?

The purchase of stock in another company is classified as a financing activity.

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2.Its net operating cash flow for Year 1 was $35,667 and $35,790 for Year 2.Calculate the cash flow on total assets ratio for both years.Comment on the results.

Use the following information to calculate cash paid for salaries:

The cash flow on total assets ratio compared to the total assets ratio can be used as an indicator of earnings quality.

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

The cash flow on total assets ratio reflects actual cash flows and is therefore affected by income recognition and measurement.

Noncash financing and investing activities are disclosed in a or in a separate .

Typical cash flows from investing activities include each of the following except:

When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating losses are subtracted from net income.

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2.Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2.Calculate its cash flow on total assets ratio for both years.Comment on the results.

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

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 12: Reporting and Analyzing Cash Flows

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

Of the following,which one affects cash during a period?

The purchase of stock in another company is classified as a financing activity.

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The appropriate section in the statement of cash flows for reporting the cash payment of wages is:

A corporation reported average total assets in Year 1 of $397,350 and $440,800 in Year 2.Its net operating cash flow for Year 1 was $35,667 and $35,790 for Year 2.Calculate the cash flow on total assets ratio for both years.Comment on the results.

Use the following information to calculate cash paid for salaries:

The cash flow on total assets ratio compared to the total assets ratio can be used as an indicator of earnings quality.

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

The cash flow on total assets ratio reflects actual cash flows and is therefore affected by income recognition and measurement.

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

Typical cash flows from investing activities include each of the following except:

When preparing the operating activities section of the statement of cash flows using the indirect method,non-operating losses are subtracted from net income.

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2.Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2.Calculate its cash flow on total assets ratio for both years.Comment on the results.

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

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Noncash financing and investing activities are disclosed in a or in a separate .