Question 1

Which would be subtracted from net income in the operating section of an indirect cash flow statement?

Accepted Answer

A)  An increase in notes payable 
B)  A decrease in prepaid expenses 
C)  An increase in sales tax payable 
D)  An increase in inventory 
E)  A decrease in accounts receivable 
A)  An increase in notes payable 
B)  A decrease in prepaid expenses 
C)  An increase in sales tax payable 
D)  An increase in inventory 
E)  A decrease in accounts receivable

Question 2

Why do gains and losses need to be removed from net income on the cash flow statement?

Accepted Answer

Gains and losses do not repres

Question 3

In the direct method of preparing a cash flow statement, interest received and interest expense are in the __________ activities section.

Accepted Answer

The answer of In the direct method of preparing a...

Question 4

Which of the following is NOT a part of financing activities?

Accepted Answer

A)  Paying dividends 
B)  Issuing shares 
C)  Paying off loans 
D)  Buying land 
E)  Borrowing money 
A)  Paying dividends 
B)  Issuing shares 
C)  Paying off loans 
D)  Buying land 
E)  Borrowing money

Question 5

Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is:

Accepted Answer

A)  121 days. 
B)  103 days. 
C)  43 days. 
D)  9 days. 
E)  112 days. 
A)  121 days. 
B)  103 days. 
C)  43 days. 
D)  9 days. 
E)  112 days.

Question 6

What is the cash conversion cycle?

Accepted Answer

The cash conversion cycle represents the

Question 7

The Accounts Receivable balance has decreased during the year. How would this affect the cash flow statement operations section under the indirect method?

Accepted Answer

It would b

Question 8

Identify the two formats for operating activities on the cash flow statement and explain the difference(s).

Accepted Answer

The two formats include the direct and i

Question 9

Operating expenses-other than depreciation-for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

Accepted Answer

A)  $335,000. 
B)  $342,000. 
C)  $328,000. 
D)  $7,000. 
E)  $349,000. 
A)  $335,000. 
B)  $342,000. 
C)  $328,000. 
D)  $7,000. 
E)  $349,000.

Question 10

The accuracy of the cash flow statement can be verified by computing the change in the balance of the:

Accepted Answer

A)  cash and cash equivalent accounts. 
B)  equity account. 
C)  revenue accounts. 
D)  asset and liability accounts. 
E)  expense accounts. 
A)  cash and cash equivalent accounts. 
B)  equity account. 
C)  revenue accounts. 
D)  asset and liability accounts. 
E)  expense accounts.

Question 11

Making a loan to another company is an example of a cash outflow from __________ activities.

Accepted Answer

The answer of Making a loan to another company is...

Question 12

Operating cash flows affect:

Accepted Answer

A)  current assets and current liabilities. 
B)  long-term asset accounts. 
C)  equity accounts. 
D)  long-term liability accounts. 
E)  current assets. 
A)  current assets and current liabilities. 
B)  long-term asset accounts. 
C)  equity accounts. 
D)  long-term liability accounts. 
E)  current assets.

Question 13

The proceeds from the sale of equipment under the direct method would be reported:

Accepted Answer

A)  in the investing section of the cash flow statement. 
B)  in the operating section of the cash flow statement. 
C)  in the financing section of the cash flow statement. 
D)  as a separate disclosure. 
E)  in the management section of the cash flow statement. 
A)  in the investing section of the cash flow statement. 
B)  in the operating section of the cash flow statement. 
C)  in the financing section of the cash flow statement. 
D)  as a separate disclosure. 
E)  in the management section of the cash flow statement.

Question 14

What is the purpose of the cash flow statement?

Accepted Answer

The cash flow statem

Question 15

The indirect method of formatting a cash flow statement starts with __________.

Accepted Answer

The answer of The indirect method of formatting a cash...

Question 16

Under the direct method, paying and collecting interest on loans are __________ activities.

Accepted Answer

The answer of Under the direct method, paying and collecting...

Question 17

Under the direct method, the only section that differs from the indirect method is the __________ activities section.

Accepted Answer

The answer of Under the direct method, the only section...

Question 18

What is the formula for inventory turnover in days?

Accepted Answer

Average inventory di

Question 19

The __________ is the financial statement associated with the operating, investing, and financing activities of a corporation.

Accepted Answer

The answer of The __________ is the financial statement associated...

Question 20

Past cash receipts and payments do NOT help to predict:

Accepted Answer

A)  management decisions. 
B)  ability to pay debts. 
C)  future cash flows. 
D)  future net income. 
E)  ability to pay dividends. 
A)  management decisions. 
B)  ability to pay debts. 
C)  future cash flows. 
D)  future net income. 
E)  ability to pay dividends.

Which would be subtracted from net income in the operating section of an indirect cash flow statement?

Why do gains and losses need to be removed from net income on the cash flow statement?

In the direct method of preparing a cash flow statement, interest received and interest expense are in the __________ activities section.

Which of the following is NOT a part of financing activities?

Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is:

What is the cash conversion cycle?

The Accounts Receivable balance has decreased during the year. How would this affect the cash flow statement operations section under the indirect method?

Identify the two formats for operating activities on the cash flow statement and explain the difference(s).

Operating expenses-other than depreciation-for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

The accuracy of the cash flow statement can be verified by computing the change in the balance of the:

Making a loan to another company is an example of a cash outflow from __________ activities.

Operating cash flows affect:

The proceeds from the sale of equipment under the direct method would be reported:

What is the purpose of the cash flow statement?

The indirect method of formatting a cash flow statement starts with __________.

Under the direct method, paying and collecting interest on loans are __________ activities.

Under the direct method, the only section that differs from the indirect method is the __________ activities section.

What is the formula for inventory turnover in days?

The __________ is the financial statement associated with the operating, investing, and financing activities of a corporation.

Past cash receipts and payments do NOT help to predict:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

Financial Statement Analysis

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Exam 11: The Cash Flow Statement

Which would be subtracted from net income in the operating section of an indirect cash flow statement?

Why do gains and losses need to be removed from net income on the cash flow statement?

In the direct method of preparing a cash flow statement, interest received and interest expense are in the __________ activities section.

Which of the following is NOT a part of financing activities?

Ryan Industries has an inventory turnover of 112 days, an accounts payable turnover of 73 days, and an accounts receivable turnover of 82 days. Ryan's cash conversion cycle is:

What is the cash conversion cycle?

The Accounts Receivable balance has decreased during the year. How would this affect the cash flow statement operations section under the indirect method?

Identify the two formats for operating activities on the cash flow statement and explain the difference(s).

Operating expenses-other than depreciation-for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

The accuracy of the cash flow statement can be verified by computing the change in the balance of the:

Making a loan to another company is an example of a cash outflow from __________ activities.

Operating cash flows affect:

The proceeds from the sale of equipment under the direct method would be reported:

What is the purpose of the cash flow statement?

The indirect method of formatting a cash flow statement starts with __________.

Under the direct method, paying and collecting interest on loans are __________ activities.

Under the direct method, the only section that differs from the indirect method is the __________ activities section.

What is the formula for inventory turnover in days?

The __________ is the financial statement associated with the operating, investing, and financing activities of a corporation.

Past cash receipts and payments do NOT help to predict:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Long-Term Assets

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

Financial Statement Analysis

Filters