Question 1

An important activity for many companies is acquiring property.

Accepted Answer

The answer of An important activity for many companies is...

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The purchase of merchandise is an important activity for a retailer.

Accepted Answer

The answer of The purchase of merchandise is an important...

Question 4

Goldman Corp.reported the following information for 2015 and 2016.   How much cash was paid for merchandise purchases during 2016?

Accepted Answer

A) $421,000 
B) $462,000 
C) $467,000 
D) $472,000 
A) $421,000 
B) $462,000 
C) $467,000 
D) $472,000

Question 5

Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account.Revenues for the period amounted to $38,000.Under the direct method, Gaulle will report cash collected from customers of:

Accepted Answer

A) $44,000 
B) $35,000 
C) $41,000 
D) $47,000 
A) $44,000 
B) $35,000 
C) $41,000 
D) $47,000

Question 6

The term cash on the statement of cash flows includes .

Accepted Answer

cash and c

Question 7

is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures.

Accepted Answer

The answer of is a measure of a company's ability...

Question 8

Carpet World Inc.reported the following information for 2015 and 2016.   If Carpet World uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2016?

Accepted Answer

A) $64,000 
B) $66,000 
C) $68,000 
D) $70,000 
A) $64,000 
B) $66,000 
C) $68,000 
D) $70,000

Question 9

The basic accounting equation can be restated in terms of cash by the following equation: Cash = current liabilities + long-term liabilities + capital stock - retained earnings - noncash current assets + long-term assets.

Accepted Answer

A) True 
 B)False

Question 10

When using the direct method, how is the payment of a cash dividend shown on the statement of cash flows?

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity

Question 11

The following items were reported on the balance sheets and income statement for the Flying Mullet Company:   How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Accepted Answer

A) As an addition to sales 
B) As a deduction from sales 
C) As an addition to net income 
D) As a deduction from net income 
A) As an addition to sales 
B) As a deduction from sales 
C) As an addition to net income 
D) As a deduction from net income

Question 12

Upon review of Jerry's Canoe Gallery statement of cash flows, the following was noted:   From this information, the most likely explanation is that Jerry is

Accepted Answer

A) using cash from operations and selling long-term assets to pay back debt. 
B) using cash from operations and borrowing to purchase long-term assets. 
C) using its profits to expand growth. 
D) using cash from investors to provide for operations. 
A) using cash from operations and selling long-term assets to pay back debt. 
B) using cash from operations and borrowing to purchase long-term assets. 
C) using its profits to expand growth. 
D) using cash from investors to provide for operations.

Question 13

When using the direct method, how is the sale of long-term investments for cash reported on the statement of cash flows?

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity

Question 14

Pilot Company reported the following information for 2015 and 2016.   How much cash was paid for insurance during 2016?

Accepted Answer

A) $13,300 
B) $14,200 
C) $15,100 
D) $15,700 
A) $13,300 
B) $14,200 
C) $15,100 
D) $15,700

Question 15

Presented below is the operating activities section of the statement of cash flows for Feline Friends Corp.for 2016:
Operating activities:  
Which method of preparing the operating activities section has Feline used?

Accepted Answer

A) The direct method 
B) The indirect method 
C) Either method 
D) Cannot be determined without further information 
A) The direct method 
B) The indirect method 
C) Either method 
D) Cannot be determined without further information

Question 16

Under the , a company reports its major classes of gross cash receipts and cash payments in the operating activities section of the statement of cash flows.

Accepted Answer

The answer of Under the , a company reports its...

Question 17

Which balance sheet accounts are most affected by financing activities?

Accepted Answer

A) Current assets 
B) Current liabilities 
C) Long-term assets 
D) Long­term liabilities and stockholders' equity 
A) Current assets 
B) Current liabilities 
C) Long-term assets 
D) Long­term liabilities and stockholders' equity

Question 18

Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one- fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck?

Accepted Answer

The answer of Carson City Saloon purchased a $25,000 truck...

Question 19

When using the indirect method, how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing or financing activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing or financing activity

Question 20

A building with a cost of $163,000 and accumulated depreciation of $32,000 was sold for a $11,000 gain.When using the indirect method, the cash generated from this investing activity was $131,000.

Accepted Answer

A) True 
 B)False

An important activity for many companies is acquiring property.

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

The purchase of merchandise is an important activity for a retailer.

Goldman Corp.reported the following information for 2015 and 2016. How much cash was paid for merchandise purchases during 2016?

Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account.Revenues for the period amounted to $38,000.Under the direct method, Gaulle will report cash collected from customers of:

The term cash on the statement of cash flows includes .

is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures.

Carpet World Inc.reported the following information for 2015 and 2016. If Carpet World uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2016?

The basic accounting equation can be restated in terms of cash by the following equation: Cash = current liabilities + long-term liabilities + capital stock - retained earnings - noncash current assets + long-term assets.

When using the direct method, how is the payment of a cash dividend shown on the statement of cash flows?

The following items were reported on the balance sheets and income statement for the Flying Mullet Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Upon review of Jerry's Canoe Gallery statement of cash flows, the following was noted: From this information, the most likely explanation is that Jerry is

When using the direct method, how is the sale of long-term investments for cash reported on the statement of cash flows?

Pilot Company reported the following information for 2015 and 2016. How much cash was paid for insurance during 2016?

Presented below is the operating activities section of the statement of cash flows for Feline Friends Corp.for 2016: Operating activities: Which method of preparing the operating activities section has Feline used?

Under the , a company reports its major classes of gross cash receipts and cash payments in the operating activities section of the statement of cash flows.

Which balance sheet accounts are most affected by financing activities?

Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one- fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck?

When using the indirect method, how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

A building with a cost of $163,000 and accumulated depreciation of $32,000 was sold for a $11,000 gain.When using the indirect method, the cash generated from this investing activity was $131,000.

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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Exam 12: The Statement of Cash Flows

An important activity for many companies is acquiring property.

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

The purchase of merchandise is an important activity for a retailer.

Goldman Corp.reported the following information for 2015 and 2016. How much cash was paid for merchandise purchases during 2016?

Gaulle Company began the year with a balance of $6,000 in Accounts Receivable and ended the year with $9,000 in the account.Revenues for the period amounted to $38,000.Under the direct method, Gaulle will report cash collected from customers of:

The term cash on the statement of cash flows includes .

is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures.

Carpet World Inc.reported the following information for 2015 and 2016. If Carpet World uses the indirect method to prepare the operating activities section of the statement of cash flows, what amount will be reported as net cash inflow from operating activities for 2016?

The basic accounting equation can be restated in terms of cash by the following equation: Cash = current liabilities + long-term liabilities + capital stock - retained earnings - noncash current assets + long-term assets.

When using the direct method, how is the payment of a cash dividend shown on the statement of cash flows?

The following items were reported on the balance sheets and income statement for the Flying Mullet Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Upon review of Jerry's Canoe Gallery statement of cash flows, the following was noted: From this information, the most likely explanation is that Jerry is

When using the direct method, how is the sale of long-term investments for cash reported on the statement of cash flows?

Pilot Company reported the following information for 2015 and 2016. How much cash was paid for insurance during 2016?

Presented below is the operating activities section of the statement of cash flows for Feline Friends Corp.for 2016: Operating activities: Which method of preparing the operating activities section has Feline used?

Under the , a company reports its major classes of gross cash receipts and cash payments in the operating activities section of the statement of cash flows.

Which balance sheet accounts are most affected by financing activities?

Carson City Saloon purchased a $25,000 truck for catering from its restaurant.It made a down payment of one- fourth of the price.What combination of amounts would affect the income statement and statement of cash flows for the purchase of the truck?

When using the indirect method, how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?

A building with a cost of $163,000 and accumulated depreciation of $32,000 was sold for a $11,000 gain.When using the indirect method, the cash generated from this investing activity was $131,000.

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

Filters