Exam 21: Statement of Cash Flows

Fidelity Furniture's Net Income was $25,000.Other accounts that changed included: Accounts Receivable increased by $18,000;Merchandise Inventory decreased by $7,000;Accounts Payable increased by $4,000;and Salaries Payable decreased by $3,000.The amount of Net Cash Flow from Operating Activities using the indirect method is:

The method of reporting cash flows from operating activities under which revenues and expenses on the income statement are adjusted to reflect the amount of cash received or expended for each item is the:

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. - Col 1 Operating Direct Col 2 Operating Indirect Col 3 Investing Col 4 Financing Net loss

If,on the comparative balance sheet,Accounts Payable has increased,the amount of increase would be:

The statement of cash flows can be used for evaluating,comparing,and predicting future cash flows.

Under the indirect method,net income is considered the primary source of cash from financing activities.

Transactions dealing with the exchange of cash between the firm and its owners (stockholders)and creditors are called:

The Accounts Payable balance has decreased during the year.How would this event affect the statement of cash flows operations section-indirect method?

The records of Ashley Boutique showed Net Loss,$25,000;Depreciation Expense,$35,000;and decrease in Supplies on Hand,$8,000.The amount of Net Cash Flow from Operating Activities using the indirect method is:

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. - Col 1 Operating Direct Col 2 Operating Indirect Col 3 Investing Col 4 Financing Cash received from customers

Of the following items,which is classified as an investing activity on the statement of cash flows?

Identify where each of the following transactions would be shown on the statement of cash flows when it is prepared by the indirect method.Identify each transaction as an operating activity (O),an investing activity (I),a financing activity (F),or transaction that is not reported on the statement of cash flows (N). a)________ Paid for fire insurance in advance b)________ Cash used to purchase new computers c)________ Cash used to retire bonds outstanding d)________ Depreciation expense e)________ Cash used to purchase fixed assets f)________ Cash proceeds from sale of the company's own stock g)________ Bought back own stock h)________ Received cash dividends

For a statement of cash flows to be prepared,an accountant needs to compare changes in two balance sheets.

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. - Col 1 Operating Direct Col 2 Operating Indirect Col 3 Investing Col 4 Financing Decrease in prepaid expenses

A transaction involving borrowing cash to buy a piece of equipment would be recorded as a(n):

Depreciation Expense on factory equipment would be reported in the statement of cash flows prepared by the indirect method in:

The records of Ashley Boutique showed Net Loss,$30,000;Depreciation Expense,$25,000;and decrease in Supplies on Hand,$25,000.The amount of Net Cash Flow from Operating Activities using the indirect method is:

Which of the following,under the indirect method,is not a proper adjustment to net income to arrive at net cash flow from operations?

Which of the following is a cash flow from investing activities?

Buying stocks of other companies for cash would result in: