Exam 11: The Statement Of Cash Flows

A company reported net income of $150,000 for the current year, but its cash balance decreased by $40,000. Which financial statement should management refer to for an explanation of this situation?

When using the indirect method to determine operating cash flows, how is the purchase of equipment for cash shown on the Statement of Cash Flows?

For the statement of cash flows, companies are required to classify their cash activities into three categories: operating, investing, and financing.

Which balance sheet accounts are most affected by operating activities?

Which of the following is not an investing activity?

Memorial Corporation Information from the financial records is presented below: -Refer to Memorial Corporation. How much cash was paid for dividends during 2020?

A company reported a net loss of $30,000 for the current year, yet its cash balance increased during the year. Which financial statement should management refer to for an explanation of this situation?

Selected information from the company's financial records is presented below: During 2020, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. -Refer to Metalcrafts, Inc. Assume that all purchases of equipment were paid with cash. How much cash was paid to purchase equipment during 2020?

When using the direct method to determine operating cash flows, how is the collection of cash from customers shown on the Statement of Cash Flows?

A company reported the following information: How much cash was collected from customers during 2020?

Cash flows from acquiring and disposing of long-term assets are classified as

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.) -Purchased truck for cash.

Cash flows from operating activities often relate to an increase or decrease in either a current asset or a current liability.

When using the indirect method to determine operating cash flows, how would the declaration and payment of cash dividends be shown on the Statement of Cash Flows?

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.) -Received payments from accounts receivable.

Which of the following transactions is not a significant noncash investing and financing activity?

Beginning equipment minus equipment sold and minus ending equipment equals ____________________.

Under the indirect method, the first line in the operating activities section of the statement of cash flows is the net income or loss for the period.

Which of the following statements is false regarding how the cash flow effects of the changes in the equipment and accumulated depreciation accounts would be reported on a statement of cash flows if the indirect method is used to prepare the operating activities section?

If an analysis of the balance sheet shows that Accounts Payable increased during the period, then the increase would have to be _______________ to net income to convert net income to cash.