Question 1

Which of the following statements are false when using the indirect method?

Accepted Answer

A) A loss on the sale of equipment is added to net income in calculating cash provided by operating activities. 
B) An increase in accounts receivable during a period is deducted from net income in calculating cash provided by operating activities. 
C) An increase in accounts payable during a period is added to net income in calculating cash provided by operating activities. 
D) A decrease in accumulated depreciation during a period is added to net income in calculating cash provided by operating activities. 
A) A loss on the sale of equipment is added to net income in calculating cash provided by operating activities. 
B) An increase in accounts receivable during a period is deducted from net income in calculating cash provided by operating activities. 
C) An increase in accounts payable during a period is added to net income in calculating cash provided by operating activities. 
D) A decrease in accumulated depreciation during a period is added to net income in calculating cash provided by operating activities.

Question 2

Which one of the following items is not generally used in preparing a statement of cash flows?

Accepted Answer

A) adjusted trial balance 
B) comparative statements of financial position 
C) current statement of income 
D) additional information 
A) adjusted trial balance 
B) comparative statements of financial position 
C) current statement of income 
D) additional information

Question 3

During the year, Salaries Payable decreased by $9,000.If Salary Expense was $155,000 for the year, the cash paid to employees was

Accepted Answer

A) $173,000. 
B) $164,000. 
C) $155,000. 
D) $146,000. 
A) $173,000. 
B) $164,000. 
C) $155,000. 
D) $146,000.

Which of the following statements are false when using the indirect method?

Which one of the following items is not generally used in preparing a statement of cash flows?

During the year, Salaries Payable decreased by $9,000.If Salary Expense was $155,000 for the year, the cash paid to employees was

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Performance Measurement

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Exam 13: Statement of Cash Flows

Which of the following statements are false when using the indirect method?

Which one of the following items is not generally used in preparing a statement of cash flows?

During the year, Salaries Payable decreased by $9,000.If Salary Expense was $155,000 for the year, the cash paid to employees was

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Performance Measurement

Filters