Exam 21: Statement of Cash Flows

A business issues 10-year bonds payable in exchange for common stock.This transaction would be reported on the statement of cash flows in:

A statement of cash flows is helpful in:

A decrease in long-term note payable would mean:

A statement of cash flow's purpose is to:

Which of the following is a cash outflow from a financing activity?

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 paid for salaries or wages

Identify each of the following transactions as an operating activity (O),an investing activity (I),a financing activity (F),or a transaction that is not reported on the statement of cash flows (N). a)________ Receipt of interest b)________ Increase of accounts payable c)________ Borrowed money from a bank d)________ Purchase of building for cash e)________ Declaration of cash dividends f)________ Sold plant equipment for cash g)________ Increase of accounts receivable h)________ Payment on principal of a note

Under the direct method of the statement of cash flows,a sale of merchandise inventory for cash is a(n):

If $15,000 was generated from operations,$7,000 was used for investing activities,and $6,000 was provided by financing activities,the cash balance would:

If a loss of $70,000 is incurred in selling equipment having a book value of $225,000,cash flow will increase:

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 income

Operating activities deal with which types of accounts?

The purchase of plant and equipment for cash would result in:

Which of the following items would be subtracted from Net Income to compute Net Cash Flow from Operating Activities under the indirect method?

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

If a company issues a comparative balance sheet showing the change in the cash balance,a statement of cash flows is not needed.

Even though the cost of fuel oil is rising,management is considering using up the business's reserves and not ordering any more this period.How will this decision affect the period's cash flows from operations-indirect method?

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following: a.If accrued expenses showed $50,000 on the income statement and payables increased from $15,000 to $18,500 on the balance sheet,what was the amount of cash paid? b.If insurance expense showed $10,000 on the income statement and Prepaid Insurance increased from $10,000 to $12,000 on the balance sheet,what was the amount of cash paid for insurance?

A statement of cash flows would NOT disclose the effect of which of the following transactions?

Of the following,which has a positive effect on the computation of cash flow from operations using the indirect method?