Exam 13: Statement of Cash Flows

A statement of cash flows indicates the sources and uses of cash during a period.

Under IFRS, bank overdrafts are classified as

Which of the following activities is excluded from the statement of cash flows under IFRS?

Which of the following statements concerning the statement of cash flows is true?

The acquisition of land by issuing common stock is

During the year, Salaries Payable decreased by $5,000. If Salary Expense amounted to $174,000 for the year, the cash paid to employees (including deductions from gross pay) is

In the Papyrus Corporation, cash receipts from customers were $136,000, cash payments for operating expenses were $102,000, and one-third of the company's $9,300 income taxes were paid during the year. Net cash provided by operating activities is:

Operating expenses + an increase in prepaid expenses - a decrease in accrued expenses payable = cash payments for operating expenses.

Spa Company uses the direct method in determining net cash provided by operating activities. The income statement shows income tax expense $85,000. Income taxes payable were $35,000 at the beginning of the year and $20,000 at the end of the year. Cash payments for income taxes are

Lending money and collecting the loans are

Under IFRS, the cash flow statement can be prepared using

Using the indirect method, an increase in accounts receivable during a period is deducted from net income in calculating cash provided by operations.

When equipment is sold for cash, the amount received is reflected as a cash

Of the items below, the one that appears first on the statement of cash flows is

In the Buans Company, land decreased $80,000 because of a cash sale for $80,000, the equipment account increased $35,000 as a result of a cash purchase, and Bonds Payable increased $60,000 from an issuance for cash at face value. The net cash provided by investing activities is

Indicate where the purchase of land for cash would appear, if at all, on the indirect statement of cash flows.

When a worksheet is used, all but one of the following statements is correct. The incorrect statement is

Indicate where the event purchase of land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows.

If accounts payable have increased during a period,

Bush Company reported net income of $60,000 for the year. During the year, accounts receivable decreased by $8,000, accounts payable increased by $4,000 and depreciation expense of $5,000 was recorded. Net cash provided by operating activities for the year is