Exam 12: The Statement of Cash Flows

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. -Reissued treasury stock.

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. -Issued twenty-year bonds.

In 2016, Valencia Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000.In its statement of cash flows for 2016, Valencia should report the following with respect to the above transactions:

Which of the following items would be considered a cash equivalent if it was held at the balance sheet date?

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. -Issued stock to retire bonds.

The amount of cash provided from operating activities is ______________________ under both the direct and indirect methods.

Flannery Company uses a worksheet to prepare its statement of cash flows.The company also uses the indirect method for the Operating Activities section of its statement.For each of the following changes in the balance sheet, indicate what activity it affects and whether it is an addition or deduction. -Land increased

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.

Which of the following statements regarding the statement of cash flows is true?

Francetti Co.purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand, 20% were still available.What combination of amounts would affect the income statement and statement of cash flows? ​ Statement of Cash Flow Income Statement a. ( \6 ,000) ( \6 ,000) b. ( \4 ,500) ( \6 ,000) c. ( \4 ,500) ( \4 ,800) d. ( \6 ,000) ( \4 ,800)

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

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. -Recognized a gain on the sale of the securities above.

Which of the following transactions is a significant noncash investing and financing activity?

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). -Decrease in accounts payable

Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. -Purchased computer equipment for cash.

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

An important __________________________ activity for many companies is acquiring property.

The issuance of common stock in exchange for a building would appear both as a cash inflow in the financing activities section of the cash flow statement and also as a cash outflow in the investing activities section.

Cash flows from borrowing and paying off a 90-day bank loan are classified as

The repurchase of a company's own stock should be reported on the statement of cash flows as an investing activity.