Exam 11: The Cash Flow Statement

The three types of business activities on a cash flow statement are operating, investing, and management activities.

Operating expenses other than depreciation for the year were $400,000. Accrued expenses increased by $35,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be:

Changes in the long-term assets and long-term liabilities accounts must be analyzed to determine how they are presented in the operating section of a cash flow statement.

The following information is available for Isaiah Company. What amount is paid for merchandise for the current year (2010)?

The sum of the net increases/decreases in the operating, investing, and financing sections of the cash flow statement is equal to the change in cash over the period.

In order to help the business prosper, a cash flow statement can aid in all EXCEPT:

Activities that increase and decrease as a result of selling a company's shares are __________ activities.

Which financial statement represents a point in time?

A company settles a long-term note payable plus interest by paying $68,000 cash toward the principal amount and $5,440 cash for the interest. Under the direct method of reporting interest, the $5,440 would be listed as a(n) __________ activity.

Gains on the sale of long-term assets are __________ from __________ activities.

What type of accounts do investing cash flows affect?

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

In order to determine why net income and cash on the balance sheet do not equal, an accountant can prepare a(n):

Of the following, which is NOT classified as an investing activity on the cash flow statement?

Cash receipts from the sale of long-term assets, such as equipment and vehicles, are __________ to __________ activities.

Identify the sources and uses of cash reported on the cash flow statement.

Accounts receivable amounted to $215,000 at the beginning of the year and $245,000 at the end of the year. Income reported on the income statement for the year was $300,000. The cash flow from operating activities on the cash flow statement using the indirect method is __________.

An example of a cash inflow from financing activities is:

The cost of purchasing long-term assets, such as buildings and land, are __________ from __________.

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