Exam 12: The Statement of Cash Flows

Net income was $ 61,000 for the year.The accumulated depreciation balance increased by $14,000 over the year.There were no sales of fixed assets or changes in noncash current assets or liabilities.Under the indirect method, the cash flow from operations is $47,000.

(True/False)

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Question 21

A decrease in retained earnings represents dividends that were during the period, not necessarily those that were paid.

(Short Answer)

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Question 22

Upon review of Jan's Lakeside Resort statement of cash flows, the following was noted: From this information, the most likely explanation is that Jan is

(Multiple Choice)

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Question 23

To be classified as a cash equivalent, an item must be readily convertible to a known amount of cash and have an original maturity to the investor of three months or more.

(True/False)

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Question 24

The statement of cash flows summarizes the operating, investing, and financing activities of a business for a period of time.

(True/False)

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Question 25

Which of the following measures can be used to evaluate a company's ability to meet future debt obligations after paying income taxes and interest and making capital expenditures?

(Multiple Choice)

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Question 26

The following items were reported on the balance sheets and income statement for Bezos Corp.: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

(Multiple Choice)

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Question 27

When using the indirect method, how is the decrease in accounts payable shown on the statement of cash flows?

(Multiple Choice)

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Question 28

During 2016, the accounts payable balance of Andreas Corp.decreased.Which of the following statements is true?

(Multiple Choice)

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Question 29

A work sheet is an alternative to T accounts to help in the preparation of a statement of cash flows.

(True/False)

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Question 30

Under the indirect method, instead of reporting cash receipts and payments, net income is reconciled with net cash from operating activities.

(True/False)

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Question 31

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?

(Multiple Choice)

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Question 32

Occasionally, companies engage in important investing and financing activities which do not affect cash.If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared?

(Multiple Choice)

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Question 33

When using the indirect method, how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?

(Multiple Choice)

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Question 34

Which of the following activities is most likely to have a cash flow effect?

(Multiple Choice)

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Question 35

Use the information below for Focal Point Corp.for 2015 and 2016 to answer the following question. Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Focal Point declare during 2016?

(Multiple Choice)

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Question 36

Some companies use a work sheet approach, which functions like the T account approach, as a tool to aid in preparing the statement of cash flows.

(True/False)

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Question 37

If the balance of wages payable increases during the year, then the for the period will be greater than the actual cash wages paid in the period.

(Short Answer)

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Question 38

Companies can use two different methods to report the amount of cash flow from their investing and financing activities.

(True/False)

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Question 39

Tara Corp.reported the following information for 2015 and 2016. How much cash was collected from customers during 2016?

(Multiple Choice)

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Question 40

Showing 21 - 40 of 158

Net income was $ 61,000 for the year.The accumulated depreciation balance increased by $14,000 over the year.There were no sales of fixed assets or changes in noncash current assets or liabilities.Under the indirect method, the cash flow from operations is $47,000.

A decrease in retained earnings represents dividends that were during the period, not necessarily those that were paid.

Upon review of Jan's Lakeside Resort statement of cash flows, the following was noted: From this information, the most likely explanation is that Jan is

To be classified as a cash equivalent, an item must be readily convertible to a known amount of cash and have an original maturity to the investor of three months or more.

The statement of cash flows summarizes the operating, investing, and financing activities of a business for a period of time.

Which of the following measures can be used to evaluate a company's ability to meet future debt obligations after paying income taxes and interest and making capital expenditures?

The following items were reported on the balance sheets and income statement for Bezos Corp.: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

When using the indirect method, how is the decrease in accounts payable shown on the statement of cash flows?

During 2016, the accounts payable balance of Andreas Corp.decreased.Which of the following statements is true?

A work sheet is an alternative to T accounts to help in the preparation of a statement of cash flows.

Under the indirect method, instead of reporting cash receipts and payments, net income is reconciled with net cash from operating activities.

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?

Occasionally, companies engage in important investing and financing activities which do not affect cash.If the amount of the transaction is significant, how should it be disclosed when financial statements are prepared?

When using the indirect method, how is the issuance of stock to retire a long-term debt shown on a statement of cash flows?

Which of the following activities is most likely to have a cash flow effect?

Use the information below for Focal Point Corp.for 2015 and 2016 to answer the following question. Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Focal Point declare during 2016?

Some companies use a work sheet approach, which functions like the T account approach, as a tool to aid in preparing the statement of cash flows.

If the balance of wages payable increases during the year, then the for the period will be greater than the actual cash wages paid in the period.

Companies can use two different methods to report the amount of cash flow from their investing and financing activities.

Tara Corp.reported the following information for 2015 and 2016. How much cash was collected from customers during 2016?

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, Plant, and Equipment, and Intangibles

Current Liabilities, Contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

Financial Statement Analysis

International Financial Reporting Standards

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