Question 1

All major financing and investing activities affect cash.

Accepted Answer

A) True 
 B)False

Question 2

In the bottom portion of the statement of cash flows worksheet

Accepted Answer

A)  inflows of cash are debits in the reconciling columns. 
B)  outflows of cash are debits in the reconciling columns. 
C)  information pertaining to investing and financing activities only is entered. 
D)  only significant noncash transactions are entered. 
A)  inflows of cash are debits in the reconciling columns. 
B)  outflows of cash are debits in the reconciling columns. 
C)  information pertaining to investing and financing activities only is entered. 
D)  only significant noncash transactions are entered.

Question 3

If a company has both an inflow and outflow of cash related to property plant and equipment the

Accepted Answer

A)  two cash effects can be netted and presented as one item in the investing activities section. 
B)  cash inflow and cash outflow should be reported separately in the investing activities section. 
C)  two cash effects can be netted and presented as one item in the financing activities section. 
D)  cash inflow and cash outflow should be reported separately in the financing activities section. 
A)  two cash effects can be netted and presented as one item in the investing activities section. 
B)  cash inflow and cash outflow should be reported separately in the investing activities section. 
C)  two cash effects can be netted and presented as one item in the financing activities section. 
D)  cash inflow and cash outflow should be reported separately in the financing activities section.

Question 4

Free cash flow equals cash provided by operations less capital expenditures and cash dividends.

Accepted Answer

A) True 
 B)False

Question 5

If accounts receivable have increased during the period

Accepted Answer

A)  revenues on an accrual basis are less than revenues on a cash basis. 
B)  revenues on an accrual basis are greater than revenues on a cash basis. 
C)  revenues on an accrual basis are the same as revenues on a cash basis. 
D)  expenses on an accrual basis are greater than expenses on a cash basis. 
A)  revenues on an accrual basis are less than revenues on a cash basis. 
B)  revenues on an accrual basis are greater than revenues on a cash basis. 
C)  revenues on an accrual basis are the same as revenues on a cash basis. 
D)  expenses on an accrual basis are greater than expenses on a cash basis.

Question 6

A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.

Accepted Answer

A) True 
 B)False

Question 7

The cash effects of selling goods and services appears in the ______________ activities section of a statement of cash flows.

Accepted Answer

The answer of The cash effects of selling goods and...

Question 8

The order of presentation of activities on the statement of cash flows is

Accepted Answer

A)  operating investing and financing. 
B)  operating financing and investing. 
C)  financing operating and investing. 
D)  financing investing and operating. 
A)  operating investing and financing. 
B)  operating financing and investing. 
C)  financing operating and investing. 
D)  financing investing and operating.

Question 9

During 2016 Blaine Company sold a building with a book value of $145000 for proceeds of $175000. The company also sold long-term investments for proceeds of $32000. The company purchased land and a new building for $320000 by signing a long-term note payable. No other transactions impacted long-term asset accounts during 2016.
Instructions
Compute net cash flows from investing activities.

Accepted Answer

Net cash flows from

Question 10

Under IFRS the cash flow statement can be prepared using

Accepted Answer

A)  the direct method only. 
B)  the indirect method only. 
C)  either the direct or indirect method. 
D)  the T-account method only. 
A)  the direct method only. 
B)  the indirect method only. 
C)  either the direct or indirect method. 
D)  the T-account method only.

Question 11

The third (final) step in preparing the statement of cash flows is to

Accepted Answer

A)  analyze changes in noncurrent asset and liability accounts. 
B)  compare the net change in cash with the change in the cash account reported on the balance sheet. 
C)  determine net cash provided by operating activities. 
D)  list the noncash activities. 
A)  analyze changes in noncurrent asset and liability accounts. 
B)  compare the net change in cash with the change in the cash account reported on the balance sheet. 
C)  determine net cash provided by operating activities. 
D)  list the noncash activities.

Question 12

When listing accounts in the statement of cash flows worksheet the accumulated depreciation account is shown

Accepted Answer

A)  with accounts that have credit balances. 
B)  with accounts that have debit balances. 
C)  as a credit under the reconciling items. 
D)  as a debit under the reconciling items. 
A)  with accounts that have credit balances. 
B)  with accounts that have debit balances. 
C)  as a credit under the reconciling items. 
D)  as a debit under the reconciling items.

Question 13

In preparing a statement of cash flows an increase in the Common Stock and Treasury Stock accounts during a period would be an investing activity.

Accepted Answer

A) True 
 B)False

Question 14

In preparing a statement of cash flows a conversion of bonds into common stock will be reported in

Accepted Answer

A)  the financing section. 
B)  the "extraordinary" section. 
C)  a separate schedule or note to the financial statements. 
D)  the stockholders' equity section. 
A)  the financing section. 
B)  the "extraordinary" section. 
C)  a separate schedule or note to the financial statements. 
D)  the stockholders' equity section.

Question 15

In the Buans Company land decreased $80000 because of a cash sale for $80000 the equipment account increased $35000 as a result of a cash purchase and Bonds Payable increased $60000 from an issuance for cash at face value. The net cash provided by investing activities is

Accepted Answer

A)  $80000. 
B)  $165000. 
C)  $45000. 
D)  $25000. 
A)  $80000. 
B)  $165000. 
C)  $45000. 
D)  $25000.

Question 16

The cash effects of transactions that create revenues and expenses are

Accepted Answer

A)  financing activities. 
B)  investing activities. 
C)  operating activities. 
D)  processing activities. 
A)  financing activities. 
B)  investing activities. 
C)  operating activities. 
D)  processing activities.

Question 17

Lending money and collecting the loans are

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  Non-cash investing and financing activities. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  Non-cash investing and financing activities.

Question 18

Small Company reported cost of goods sold of $179000 on its 2016 income statement. The company's beginning inventory was $35000. The ending inventory was valued at $40000. The Accounts Payable balance at January 1 was $25000. The December 31 balance in Accounts Payable was $22000.
Instructions
Compute cash payments to suppliers.

Accepted Answer

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Question 19

You are the accountant for a small manufacturing firm. Your company is privately held so there is no current requirement to issue financial statements using GAAP. You were hired four years ago and at that time you instituted a cash budgeting system. Presently you present a schedule of predicted cash sources and cash needs at the end of each week for the following week.
Jim Bangon the company's president has asked whether a statement of cash flows would also be useful.
Required:
Prepare a short memorandum to the president indicating whether you believe such an addition to the financial statements to be useful. Include in your memo the benefits that might be expected from a statement of cash flows and whether those are different from the benefits of a cash sources and cash needs listing.

Accepted Answer

The answer of You are the accountant for a small...

Question 20

If accounts receivable increase during a period revenues on an accrual basis are ______________ than revenues on a cash basis.

Accepted Answer

The answer of If accounts receivable increase during a period...

Exam 17: Statement of Cash Flows

All major financing and investing activities affect cash.

In the bottom portion of the statement of cash flows worksheet

If a company has both an inflow and outflow of cash related to property plant and equipment the

Free cash flow equals cash provided by operations less capital expenditures and cash dividends.

If accounts receivable have increased during the period

A primary objective of the statement of cash flows is to show the income or loss on investing and financing transactions.

The cash effects of selling goods and services appears in the ______________ activities section of a statement of cash flows.

The order of presentation of activities on the statement of cash flows is

Under IFRS the cash flow statement can be prepared using

The third (final) step in preparing the statement of cash flows is to

When listing accounts in the statement of cash flows worksheet the accumulated depreciation account is shown

In preparing a statement of cash flows an increase in the Common Stock and Treasury Stock accounts during a period would be an investing activity.

In preparing a statement of cash flows a conversion of bonds into common stock will be reported in

In the Buans Company land decreased $80000 because of a cash sale for $80000 the equipment account increased $35000 as a result of a cash purchase and Bonds Payable increased $60000 from an issuance for cash at face value. The net cash provided by investing activities is

The cash effects of transactions that create revenues and expenses are

Lending money and collecting the loans are

If accounts receivable increase during a period revenues on an accrual basis are ______________ than revenues on a cash basis.

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Financial Statement Analysis

Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Incremental Analysis and Capital Budgeting

Time Value of Money

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