The following items were reported on the balance sheets and income statement for Carlton Co.: $\begin{array}{lr} \text { Accounts receivable, December } 31,2016 & \$ 185,000 \\ \text { Accounts receivable, December } 31,2017 & 178,000 \\ \text { Sales-2017 } & 850,000 \end{array}$ What amount would be reported in the operating activities section of the statement of cash flows for collections from customers under the direct method assuming that all sales are on credit?

A) $850,000 B) $857,000 C) $843,000 D) Cannot be determined without further information. A) $850,000 B) $857,000 C) $843,000 D) Cannot be determined without further information.

Lincoln Company reported the following information in its annual report for 2016. $\begin{array}{lr} \text { Cash flows from operating activities } & \$ 300,000 \\ \text { Capital Expenditures } & 225,000 \\ \text { Average amount of debt maturing over the next } 5 \text { years } & 200,000 \end{array}$ What is the cash flow adequacy ratio for 2016 for Lincoln Company?

A) 0.38 B) 1.50 C) 1.88 D) 7.50 A) 0.38 B) 1.50 C) 1.88 D) 7.50

Washington Corp.reported the following information for 2016 and 2017. $\begin{array}{lrr} & \mathbf{2 0 1 6} & \mathbf{2 0 1 7} \\ \text { Accounts receivable } & \$ 101,000 & \$ 93,000 \\ \text { Prepaid expenses } & 5,000 & 6,000 \\ \text { Accounts payable } & 71,000 & 76,000 \\ \text { Salaries payable } & 5,000 & 4,000 \\ \text { Net income } & & 80,000 \\ \text { Depreciation expense } & & 9,000 \\ \text { Gain on sale of equipment } & & 5,000\\ \end{array}$ If Washington 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 2017?

A) $73,000 B) $83,000 C) $95,000 D) $105,000 A) $73,000 B) $83,000 C) $95,000 D) $105,000

Exam 12: The Statement of Cash Flows

Under the _______________________________, the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments, and all accruals of future operating cash receipts or payments.

(Short Answer)

4.8/5

(66)

Question 181

Cash flows from purchases of merchandise are classified as investing activities.

(True/False)

4.9/5

(91)

Question 182

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)

4.8/5

(81)

Question 183

Cash flows from operating activities usually relate to an increase or decrease in either a current asset or a current liability.

(True/False)

5.0/5

(73)

Question 184

The following items were reported on the balance sheets and income statement for Carlton Co.: Accounts receivable, December 31,2016 \ 185,000 Accounts receivable, December 31,2017 178,000 Sales-2017 850,000 What amount would be reported in the operating activities section of the statement of cash flows for collections from customers under the direct method assuming that all sales are on credit?

(Multiple Choice)

4.9/5

(71)

Question 185

Which balance sheet accounts are most affected by operating activities?

(Multiple Choice)

4.8/5

(70)

Question 186

Assuming the indirect method for preparing the statement of cash flows is used, indicate whether these items should be added to net income (A), deducted from net income (D), or not be reported in the operating section of the statement under the indirect method (NR). -Exchange of a note for equipment

(Multiple Choice)

4.9/5

(79)

Question 187

Klein Corp.acquired land by issuing its common stock.How should this transaction be disclosed when a statement of cash flows is prepared?

(Multiple Choice)

4.9/5

(74)

Question 188

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b). -Net income

(Multiple Choice)

4.8/5

(72)

Question 189

Lincoln Company reported the following information in its annual report for 2016. Cash flows from operating activities \ 300,000 Capital Expenditures 225,000 Average amount of debt maturing over the next 5 years 200,000 What is the cash flow adequacy ratio for 2016 for Lincoln Company?

(Multiple Choice)

4.8/5

(72)

Question 190

When using the indirect method, how would the declaration and payment of cash dividends be shown on the statement of cash flows?

(Multiple Choice)

5.0/5

(75)

Question 191

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b). -Gain on early retirement of bonds

(Multiple Choice)

4.8/5

(79)

Question 192

At the end of the first year of operations, the balance sheet of Huntington Beach Co.Industries had the following balances: Accounts Receivable, $5,000; Accounts Payable, $6,000; Inventory, $3,000; and Unexpired Insurance, $2,000.The corporation reported net income of $79,000 for the year, including depreciation expense of $5,000, and uses the indirect method of computing net cash flow from operating activities.Based on this information, net cash flow from operating activities is:

(Multiple Choice)

4.8/5

(101)

Question 193

Washington Corp.reported the following information for 2016 and 2017. Accounts receivable \ 101,000 \ 93,000 Prepaid expenses 5,000 6,000 Accounts payable 71,000 76,000 Salaries payable 5,000 4,000 Net income 80,000 Depreciation expense 9,000 Gain on sale of equipment 5,000 If Washington 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 2017?

(Multiple Choice)

4.9/5

(83)

Question 194

Planet & Co.reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

(Multiple Choice)

4.9/5

(88)

Question 195

Which of the following statements is false?

(Multiple Choice)

4.8/5

(85)

Question 196

Nordic Exports Inc.reported net income of $150,000 for 2016, but its cash balance decreased $40,000.Which financial statement should Nordic Exports' management refer to for an explanation of this situation?

(Multiple Choice)

4.9/5

(96)

Question 197

If the December 31, 2016, balance of accounts receivable is higher than the January 1, 2016, balance, then the amount of cash collections will be less than the sales on account for the year.

(True/False)

4.9/5

(93)

Question 198

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. -Received cash from the sale of securities.

(Multiple Choice)

4.9/5

(89)

Question 199

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b). -Increase in accounts receivable

(Multiple Choice)

4.8/5

(75)

Question 200

Showing 181 - 200 of 205

Under the _______________________________, the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments, and all accruals of future operating cash receipts or payments.

Cash flows from purchases of merchandise are classified as investing activities.

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?

Cash flows from operating activities usually relate to an increase or decrease in either a current asset or a current liability.

Which balance sheet accounts are most affected by operating activities?

Assuming the indirect method for preparing the statement of cash flows is used, indicate whether these items should be added to net income (A), deducted from net income (D), or not be reported in the operating section of the statement under the indirect method (NR). -Exchange of a note for equipment

Klein Corp.acquired land by issuing its common stock.How should this transaction be disclosed when a statement of cash flows is prepared?

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b). -Net income

Lincoln Company reported the following information in its annual report for 2016. Cash flows from operating activities \ 300,000 Capital Expenditures 225,000 Average amount of debt maturing over the next 5 years 200,000 What is the cash flow adequacy ratio for 2016 for Lincoln Company?

When using the indirect method, how would the declaration and payment of cash dividends be shown on the statement of cash flows?

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b). -Gain on early retirement of bonds

Planet & Co.reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

Which of the following statements is false?

Nordic Exports Inc.reported net income of $150,000 for 2016, but its cash balance decreased $40,000.Which financial statement should Nordic Exports' management refer to for an explanation of this situation?

If the December 31, 2016, balance of accounts receivable is higher than the January 1, 2016, balance, then the amount of cash collections will be less than the sales on account for the year.

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. -Received cash from the sale of securities.

For each of the following items, indicate whether it would appear on a statement of cash flows prepared using the Direct method (a) or the Indirect method (b). -Increase in accounts receivable

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 True Value of Money

Long-Term Liabilities

Stockholders Equity

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters