Match between columns Premises: Increase in Dividends Payable Decrease in Accrued Liabilities Decrease in Property,Plant,and Equipment Increase in Accounts Receivable Gain on Sales of Property,Plant and Equipment Decrease in Income Tax Payable Decrease in Inventory Decrease in Prepaid Expenses Depreciation Expense Increase in Accounts Payable

The Answer of Subtract item from net income and No is...

Exam 12: Statement of Cash Flows

Choose the appropriate letter to match the account balance change with the type of adjustment made to net income when using the indirect method to determine net cash flow provided by operating activities.

Increase in Dividends Payable

Subtract item from net income

Decrease in Accrued Liabilities

No adjustment necessary

Decrease in Property,Plant,and Equipment

Add item to net income

Correct Answer:

Verified

Increase in Dividends Payable

Decrease in Accrued Liabilities

Decrease in Property,Plant,and Equipment

(Matching)

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Question 41

Bracken,Inc.uses the direct method to determine its cash flow from operations.During the year,it had sales revenue of $480,000.Its beginning Accounts Receivable balance was $48,000,and its ending Accounts Receivable balance was $64,000.Its cash collected from customers for the year was:

(Multiple Choice)

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(75)

Question 42

Marathon,Inc.showed Salaries and Wages Expense of $244,000 on its income statement.If the Salaries and Wages Payable account was $27,000 at the beginning of the year and $18,500 at the end of the year,how much cash was paid to employees?

(Multiple Choice)

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Question 43

The introductory phase of a company's life cycle will most likely have net cash:

(Multiple Choice)

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Question 44

Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Selected Balance Sheet Accounts Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

(Essay)

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Question 45

Subtracting a decrease in Unearned Revenue from net income eliminates the effect of recording revenue that:

(Multiple Choice)

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Question 46

Which phrase below best describes the direct method for reporting operating cash flows?

(Multiple Choice)

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Question 47

Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows.

(True/False)

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Question 48

The purchase of $100,000 of equipment by issuing a note would be reported:

(Multiple Choice)

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Question 49

Two years ago,Bethel,Inc.bought $80,000 in bonds from another company.This month,it sold half of those bonds for $41,280 and purchased the common stock of another company for $2,000.On the statement of cash flows for this accounting period,Bethel would report a net cash:

(Multiple Choice)

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Question 50

Which of the following statements is correct?

(Multiple Choice)

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Question 51

Which of the following items below will be subtracted in the financing cash flow portion of the statement of cash flows?

(Multiple Choice)

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Question 52

Which of the following represent cash outflows from financing activities?

(Multiple Choice)

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Question 53

Under the indirect method,changes in current assets are used in determining cash flows from operating activities and changes in current liabilities are used in determining cash flows from financing activities.

(True/False)

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Question 54

To determine net cash provided by or used in financing activities,one must analyze the:

(Multiple Choice)

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Question 55

Castle Company's sales revenue was $584,696 and cash collected from customers was $587,003,which of the following would be consistent with this difference?

(Multiple Choice)

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Question 56

Supplemental disclosures required by companies using the indirect method include all of the following except:

(Multiple Choice)

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Question 57

Accrual-basis accounting is superior to cash-basis accounting in that:

(Multiple Choice)

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Question 58

In the decline phase,the company continues to enjoy positive operating cash flows but stops spending cash on investing activities and instead uses its cash for financing activities such as repaying lenders and returning excess cash to shareholders.

(True/False)

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Question 59

Which of the following statements about financing activities is not correct?

(Multiple Choice)

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Question 60

Showing 41 - 60 of 222

Bracken,Inc.uses the direct method to determine its cash flow from operations.During the year,it had sales revenue of $480,000.Its beginning Accounts Receivable balance was $48,000,and its ending Accounts Receivable balance was $64,000.Its cash collected from customers for the year was:

Marathon,Inc.showed Salaries and Wages Expense of $244,000 on its income statement.If the Salaries and Wages Payable account was $27,000 at the beginning of the year and $18,500 at the end of the year,how much cash was paid to employees?

The introductory phase of a company's life cycle will most likely have net cash:

Selected balance sheet information and the income statement for Pioneer Industries for the current year are presented below. Selected Balance Sheet Accounts Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Subtracting a decrease in Unearned Revenue from net income eliminates the effect of recording revenue that:

Which phrase below best describes the direct method for reporting operating cash flows?

Major investing and financing activities that do not involve cash do not have to be reported as part of the statement of cash flows.

The purchase of $100,000 of equipment by issuing a note would be reported:

Two years ago,Bethel,Inc.bought $80,000 in bonds from another company.This month,it sold half of those bonds for $41,280 and purchased the common stock of another company for $2,000.On the statement of cash flows for this accounting period,Bethel would report a net cash:

Which of the following statements is correct?

Which of the following items below will be subtracted in the financing cash flow portion of the statement of cash flows?

Which of the following represent cash outflows from financing activities?

Under the indirect method,changes in current assets are used in determining cash flows from operating activities and changes in current liabilities are used in determining cash flows from financing activities.

To determine net cash provided by or used in financing activities,one must analyze the:

Castle Company's sales revenue was $584,696 and cash collected from customers was $587,003,which of the following would be consistent with this difference?

Supplemental disclosures required by companies using the indirect method include all of the following except:

Accrual-basis accounting is superior to cash-basis accounting in that:

In the decline phase,the company continues to enjoy positive operating cash flows but stops spending cash on investing activities and instead uses its cash for financing activities such as repaying lenders and returning excess cash to shareholders.

Which of the following statements about financing activities is not correct?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments,Financial Statements,and Financial Results

Fraud,Internal Control,and Cash

Merchandising Operations and the Multistep Income Statement

Inventory and Cost of Goods Sold

Receivables,Bad Debt Expense,and Interest Revenue

Long-Lived Tangible and Intangible Assets

Liabilities

Stockholders Equity

Measuring and Evaluating Financial Performance

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