Exam 21: Statement of Cash Flows

Cash included on the statement of cash flows can include which of the following?

The records of Amy's Flowers showed Net Loss, $20,000; Depreciation Expense, $31,000; and decrease in Supplies on Hand, $8,000. The amount of Net Cash Flow from Operating Activities using the indirect method is:

A ___________ balance sheet lists the financial condition for two or more years in a side-by-side manner.

The method of reporting cash flows from operating activities under which revenues and expenses on the income statement are adjusted to reflect the amount of cash received or expended for each item is the:

An increase to Accounts Receivable results is a positive cash effect.

A decrease in long-term notes payable would mean:

Receiving cash from a lender would result in:

The investing activities section of the statement of cash flows is where differences occur between the indirect and direct method.

An outflow of cash from investing activities would be:

Cost of merchandise sold for the year was $370,000. Inventories were $34,000 and $80,000 at the beginning and end of the year, respectively. There were no changes in accounts payable from the beginning to the end of the year. Cash payment for merchandise to be reported on the cash flow statement using the direct method is:

A statement of cash flows' purpose is to:

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. -

One section of a statement of cash flows, using the direct method, is financing activities.

For each of the following items, indicate (by placing an X) whether the item would be found on the statement of cash flows in column 1, the direct approach for determining the cash flows from operating activities, column 2, the indirect approach for determining the cash flows from operating activities, column 3, cash flows from investing activities, column 4, cash flows from financing activities. If you identify that an item affects the cash flows from operation, indirect method, also indicate whether it will be increasing (+) or decreasing (-) the cash flows. -

If Salaries Expense was $38,000, and there was a decrease in Salaries Payable of $15,000, what would be the cash amount paid for Salaries?

When comparing net cash provided by operating activities using the indirect versus direct methods:

A change in Accounts Payable is considered an operating activity.

Operating expenses other than depreciation expense for the year were $30,500. Prepaid expenses increased by $9,400. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

Which of the following is a cash outflow from a financing activity?

The following information is given for Tripp Company, which uses the indirect method. From the information provided, answer the following questions: a) The cash flow from operating activities is ________. b) The cash flow from investing activities is ________. c) The cash flow from financing activities is ________.