Question 1

Dorman Company reported the following data:   
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Accepted Answer

Cash flows

Question 2

Match between columns
                        Premises: Increase in accounts receivable balance
Sale of land
Repayment of long-term note payable
Purchase of equipment
Acquisition of treasury stock
Exchange of land for common stock
Gain on sale of investments
Payment of dividends
Amortization of intangible assets
Decrease in accounts payable balance

Accepted Answer

The Answer of Decrease cash from financing activities and Increase is...

Question 3

Income tax was $175,000 for the year.  Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively.  Cash payments for income tax reported on the statement of cash flows using the direct method is

Accepted Answer

A)  $175,000 
B)  $165,000 
C)  $205,000 
D)  $215,000 
A)  $175,000 
B)  $165,000 
C)  $205,000 
D)  $215,000

Question 4

Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

Accepted Answer

A) True 
 B)False

Question 5

The manner of reporting cash flows from investing and financing activities will be different under the direct method as compared to the indirect method.

Accepted Answer

A) True 
 B)False

Question 6

Rogers Company reported net income of $35,000 for the year.  During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded.  Net cash provided by operating activities for the year is

Accepted Answer

A)  $53,000 
B)  $47,000 
C)  $33,000 
D)  $37,000 
A)  $53,000 
B)  $47,000 
C)  $33,000 
D)  $37,000

Question 7

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:   
Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Accepted Answer

The answer of Balances of the current asset and current...

Question 8

Match between columns
                        Premises: Loss on sale of equipment
Increase in income taxes payable
Sale of machinery held for use by the company
Dividends received on investment
Exchange of land for note payable
Purchase of the stock of another company as investment
Decrease in inventory
Issuance of bond payable
Payment of dividends to stockholders
Increase in accounts receivable

Accepted Answer

The Answer of Schedule of noncash financing and investing and is...

Question 9

Under the direct method of preparing a statement of cash flows, the gain on the sale of land is not adjusted or reported as part of cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 10

The current period statement of cash flows includes the following:   The cash balance at the end of the period is

Accepted Answer

A)  $45,000 
B)  $635,000 
C)  $355,000 
D)  $125,000 
A)  $45,000 
B)  $635,000 
C)  $355,000 
D)  $125,000

Question 11

Under the indirect method, expenses that do not affect cash are added to net income in the operating activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 12

Repayments of bonds would be shown as a cash outflow in the investing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 13

Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the issuance of bonds payable.

Accepted Answer

A) True 
 B)False

Question 14

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

Accepted Answer

A) True 
 B)False

Question 15

Sales reported on the income statement were $372,000.  The accounts receivable balance declined $4,500 over the year.  The amount of cash received from customers was $367,500.

Accepted Answer

A) True 
 B)False

Question 16

The declaration and issuance of a stock dividend would be reported on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 17

On the statement of cash flows, the cash flows from financing activities section would include all of the following except

Accepted Answer

A)  receipts from the sale of bonds payable 
B)  payments for dividends 
C)  payments for purchase of treasury stock 
D)  payments of interest on bonds payable 
A)  receipts from the sale of bonds payable 
B)  payments for dividends 
C)  payments for purchase of treasury stock 
D)  payments of interest on bonds payable

Question 18

Cash flow per share is

Accepted Answer

A)  required to be reported on the balance sheet 
B)  required to be reported on the income statement 
C)  required to be reported on the statement of cash flows 
D)  not required to be reported on any statement 
A)  required to be reported on the balance sheet 
B)  required to be reported on the income statement 
C)  required to be reported on the statement of cash flows 
D)  not required to be reported on any statement

Question 19

Cost of merchandise sold reported on the income statement was $155,000.  The accounts payable balance increased $8,000, and the inventory balance increased by $21,000 over the year.  Determine the amount of cash paid for merchandise.

Accepted Answer

The answer of Cost of merchandise sold reported on the...

Question 20

There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method.

Accepted Answer

A) True 
 B)False

Dorman Company reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Income tax was $175,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is

Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

The manner of reporting cash flows from investing and financing activities will be different under the direct method as compared to the indirect method.

Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Under the direct method of preparing a statement of cash flows, the gain on the sale of land is not adjusted or reported as part of cash flows from operating activities.

The current period statement of cash flows includes the following: The cash balance at the end of the period is

Under the indirect method, expenses that do not affect cash are added to net income in the operating activities section of the statement of cash flows.

Repayments of bonds would be shown as a cash outflow in the investing section of the statement of cash flows.

Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the issuance of bonds payable.

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

Sales reported on the income statement were $372,000. The accounts receivable balance declined $4,500 over the year. The amount of cash received from customers was $367,500.

The declaration and issuance of a stock dividend would be reported on the statement of cash flows.

On the statement of cash flows, the cash flows from financing activities section would include all of the following except

Cash flow per share is

Cost of merchandise sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the inventory balance increased by $21,000 over the year. Determine the amount of cash paid for merchandise.

There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method.

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Financial Statement Analysis

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Exam 13: Statement of Cash Flows

Dorman Company reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Income tax was $175,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year, respectively. Cash payments for income tax reported on the statement of cash flows using the direct method is

Using the indirect method, if land costing $85,000 was sold for $145,000, the amount reported in the financing activities section of the statement of cash flows would be $85,000.

The manner of reporting cash flows from investing and financing activities will be different under the direct method as compared to the indirect method.

Rogers Company reported net income of $35,000 for the year. During the year, accounts receivable increased by $7,000, accounts payable decreased by $3,000 and depreciation expense of $8,000 was recorded. Net cash provided by operating activities for the year is

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Under the direct method of preparing a statement of cash flows, the gain on the sale of land is not adjusted or reported as part of cash flows from operating activities.

The current period statement of cash flows includes the following: The cash balance at the end of the period is

Under the indirect method, expenses that do not affect cash are added to net income in the operating activities section of the statement of cash flows.

Repayments of bonds would be shown as a cash outflow in the investing section of the statement of cash flows.

Cash flows from investing activities, as part of the statement of cash flows, would include any receipts from the issuance of bonds payable.

Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section.

Sales reported on the income statement were $372,000. The accounts receivable balance declined $4,500 over the year. The amount of cash received from customers was $367,500.

The declaration and issuance of a stock dividend would be reported on the statement of cash flows.

On the statement of cash flows, the cash flows from financing activities section would include all of the following except

Cash flow per share is

Cost of merchandise sold reported on the income statement was $155,000. The accounts payable balance increased $8,000, and the inventory balance increased by $21,000 over the year. Determine the amount of cash paid for merchandise.

There are two alternatives to reporting cash flows from operating activities in the statement of cash flows: (1) the direct method and (2) the indirect method.

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Financial Statement Analysis

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