Question 1

The statement of cash flows shows the effects on net income of a company's operating, investing, and financing activities for an accounting period.

Accepted Answer

A) True 
 B)False

Question 2

All of the following statements about free cash flow are false except

Accepted Answer

A) significant free cash flow indicates less potential to finance new investment. 
B) free cash flow is most commonly calculated by subtracting capital expenditures from cash provided by operations and then adding cash dividends. 
C) free cash flow is not reported on the statement of cash flows. 
D) significant free cash flow indicates less potential to pay additional dividends. 
A) significant free cash flow indicates less potential to finance new investment. 
B) free cash flow is most commonly calculated by subtracting capital expenditures from cash provided by operations and then adding cash dividends. 
C) free cash flow is not reported on the statement of cash flows. 
D) significant free cash flow indicates less potential to pay additional dividends.

Question 3

Cash receipts from customers are greater than sales revenues when there is a(n)

Accepted Answer

A) increase in accounts receivable. 
B) decrease in accounts receivable. 
C) increase in cost of goods sold. 
D) decrease in cost of goods sold. 
A) increase in accounts receivable. 
B) decrease in accounts receivable. 
C) increase in cost of goods sold. 
D) decrease in cost of goods sold.

Question 4

Generally, the most important category on the statement of cash flows is cash flows from

Accepted Answer

A) operating activities. 
B) investing activities. 
C) financing activities. 
D) significant noncash activities. 
A) operating activities. 
B) investing activities. 
C) financing activities. 
D) significant noncash activities.

Question 5

Brad Ford Company reports a $48,000 increase in inventory and a $12,000 increase in accounts payable during the year. Cost of goods sold for the year was $285,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

Accepted Answer

A) $285,000. 
B) $321,000. 
C) $249,000. 
D) $237,000. 
A) $285,000. 
B) $321,000. 
C) $249,000. 
D) $237,000.

Question 6

The receipt of dividends from long-term investments in stock is classified as a cash inflow from investing activities.

Accepted Answer

A) True 
 B)False

Question 7

All of the following statements are true regarding cash flow presentations except

Accepted Answer

A) the balance sheet provides only limited information about a company's cash flows. 
B) the balance sheet provides information about how property, plant, and equipment were financed. 
C) the income statement does not show how much cash was generated by operating activities. 
D) if cash from operations is compared to net income, information about the quality of reported net income is revealed. 
A) the balance sheet provides only limited information about a company's cash flows. 
B) the balance sheet provides information about how property, plant, and equipment were financed. 
C) the income statement does not show how much cash was generated by operating activities. 
D) if cash from operations is compared to net income, information about the quality of reported net income is revealed.

Question 8

Which one of the following affects cash during a period?

Accepted Answer

A) Recording depreciation expense. 
B) Declaration of a cash dividend. 
C) Write-off of an uncollectible account receivable. 
D) Payment of an accounts payable. 
A) Recording depreciation expense. 
B) Declaration of a cash dividend. 
C) Write-off of an uncollectible account receivable. 
D) Payment of an accounts payable.

Question 9

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

Accepted Answer

A) receipts from the sale of investments. 
B) net income. 
C) payments for dividends. 
D) receipts from the issuance of capital stock. 
A) receipts from the sale of investments. 
B) net income. 
C) payments for dividends. 
D) receipts from the issuance of capital stock.

Question 10

Which of the following items does not appear in the statement of cash flows under the direct method?

Accepted Answer

A) Cash payments to suppliers. 
B) Cash collections from customers. 
C) Depreciation Expense. 
D) Cash from the sale of equipment. 
A) Cash payments to suppliers. 
B) Cash collections from customers. 
C) Depreciation Expense. 
D) Cash from the sale of equipment.

The statement of cash flows shows the effects on net income of a company's operating, investing, and financing activities for an accounting period.

All of the following statements about free cash flow are false except

Cash receipts from customers are greater than sales revenues when there is a(n)

Generally, the most important category on the statement of cash flows is cash flows from

Brad Ford Company reports a $48,000 increase in inventory and a $12,000 increase in accounts payable during the year. Cost of goods sold for the year was $285,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

The receipt of dividends from long-term investments in stock is classified as a cash inflow from investing activities.

All of the following statements are true regarding cash flow presentations except

Which one of the following affects cash during a period?

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

Which of the following items does not appear in the statement of cash flows under the direct method?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 11: Statement of Cash Flows

The statement of cash flows shows the effects on net income of a company's operating, investing, and financing activities for an accounting period.

All of the following statements about free cash flow are false except

Cash receipts from customers are greater than sales revenues when there is a(n)

Generally, the most important category on the statement of cash flows is cash flows from

Brad Ford Company reports a $48,000 increase in inventory and a $12,000 increase in accounts payable during the year. Cost of goods sold for the year was $285,000. Using the direct method of reporting cash flows from operating activities, cash payments made to suppliers were

The receipt of dividends from long-term investments in stock is classified as a cash inflow from investing activities.

All of the following statements are true regarding cash flow presentations except

Which one of the following affects cash during a period?

Cash flows from operating activities, as reported on the statement of cash flows under the indirect method, would include

Which of the following items does not appear in the statement of cash flows under the direct method?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Financial Analysis: The Big Picture

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters