Exam 13: Statement of Cash Flows

For a company using the direct method, both the operating activities and investing activities will report the same net amounts provided or used as the indirect method, but the amount reported under financing activities will be different.

The purchase and sale of investments not held for trading purposes is a(n)

In calculating net cash provided by operating activities using the indirect method, an increase in prepaid expenses during a period is

Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is not added to net income?

Net income reported for the current year was $200,000.Depreciation expense was $35,000.During the year, Accounts Receivable and Inventory increased $18,000 and $26,000, respectively.Prepaid Expenses and Accounts Payable decreased $4,000 and $9,000, respectively.There was also a loss on the sale of equipment of $6,000.Using the indirect method, how much cash was provided by operating activities?

The statement of cash flows classifies cash receipts and payments as operating, non-operating, and financial activities.

In preparing the operating activities section of the statement of cash flows, most companies in Canada prefer to

Under IFRS, cash receipts from interest and dividends are classified as

In preparing a statement of cash flows,

Starting with net income and adjusting it for items that affected reported net income but not cash is called the

Noncash investing and financing transactions, such as the exchange of common shares to purchase assets, represent significant investing and financing activities and are reported in a note to the financial statements.

Using the indirect method, which of the following adjustments to convert net income to net cash provided by operating activities is correct?

In calculating cash flows provided (used) by operating activities using the indirect method, a loss on the sale of equipment is

During the year, Income Tax Expense was $22,000 and Income Tax Payable increased by $3,000; therefore, the cash paid for income tax was $19,000.

Cash flow information is useful in assessing a company's ability to generate future cash flows.

Operating activities include the cash effects of transactions that create revenues and expenses.

The statement of income showed bond interest expense of $11,520 while the statement of financial position showed that the carrying amount of the bonds payable had increased by $1,520.Assuming no other transactions affected bonds during the period, the cash paid for bond interest was

On the statement of cash flows, the operating activities section prepared using the direct method would include

In calculating cash flow provided (used) by operating activities using the direct method, each item in the statement of income is adjusted from the accrual basis to the cash basis.

During the year, Oak Inc.reported other operating expenses of $102,000.The Prepaid Expenses decreased $8,500 during the year, and liabilities related to other operating expenses increased by $11,000.What were Oak's cash payments for operating expenses for the year?