Question 1

The reporting format for the statement of cash flows which shows the difference between accrual-based net income and cash flows from operations is the:

Accepted Answer

A) direct format 
B) indirect format 
C) noncash format 
D) allowance format 
A) direct format 
B) indirect format 
C) noncash format 
D) allowance format

Question 2

The issuance of common stock in exchange for a patent would be reported in the following section of the statement of cash flows:

Accepted Answer

A) investing activities 
B) operating activities 
C) financing activities 
D) noncash investing and financing activities 
A) investing activities 
B) operating activities 
C) financing activities 
D) noncash investing and financing activities

Question 3

Explain why many analysts consider operating activities the most important of the three activities reported on the statement of cash flow.

Accepted Answer

Many analysts consider operating activit

Question 4

Cost of Goods Sold for the period totaled $598,000,accounts payable had a beginning and ending balance of $97,000 and $86,500,respectively,and inventory had a beginning and ending balance of $156,000 and $142,500,respectively.Cash payments for inventory were:

Accepted Answer

A) $574,000 
B) $595,000 
C) $601,000 
D) $622,000 
A) $574,000 
B) $595,000 
C) $601,000 
D) $622,000

Question 5

Collections from customers would be reported in the following section of the statement of cash flows:

Accepted Answer

A) investing activities 
B) financing activities 
C) operating activities 
D) noncash investing and financing activities 
A) investing activities 
B) financing activities 
C) operating activities 
D) noncash investing and financing activities

Question 6

Chair Inc.has the below financial information.Using the direct method (statement of cash flows),solve for cash received from customers (show your work).
   Other Information:
Customer Sales ==> $ 900,000

Accepted Answer

Accounts Receivable
Beg.Bal.+

Question 7

Match between columns
                        Premises: Noncash Operating Expenses
Indirect Format
Cash Flow Per Share
Direct Format
Current Operating Liabilities

Accepted Answer

The Answer of Includes net income in the operating section is...

Question 8

The beginning balance in accounts receivable is $ 8,000.Sales during the period equaled $ 15,000.The ending balance in accounts receivable equals $ 2,000.What was the cash received from customers?

Accepted Answer

A) $ 7,000 
B) $ 8,000 
C) $ 15,000 
D) $ 21,000 
A) $ 7,000 
B) $ 8,000 
C) $ 15,000 
D) $ 21,000

Question 9

The conversion of preferred stock into common stock would be reported in the following section of the statement of cash flows:

Accepted Answer

A) investing activities 
B) operating activities 
C) financing activities 
D) noncash investing and financing activities 
A) investing activities 
B) operating activities 
C) financing activities 
D) noncash investing and financing activities

Question 10

If a firm sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation,how is this reported in the statement of cash flows?

Accepted Answer

A) $8,000 investing activity 
B) $8,000 financing activity 
C) $8,000 financing activity and $3,000 addition to net income 
D) $8,000 investing activity and $3,000 subtraction from net income 
A) $8,000 investing activity 
B) $8,000 financing activity 
C) $8,000 financing activity and $3,000 addition to net income 
D) $8,000 investing activity and $3,000 subtraction from net income

Question 11

On a statement of cash flows using the indirect format,an increase in taxes payable is:

Accepted Answer

A) ignored,since it is a noncash expenditure 
B) added to net income in the operating activities section 
C) included as an outflow in the financing activities section 
D) deducted from net income in the operating activities section 
A) ignored,since it is a noncash expenditure 
B) added to net income in the operating activities section 
C) included as an outflow in the financing activities section 
D) deducted from net income in the operating activities section

Question 12

The purchase of machinery by signing a long-term note payable would be reported in the following section of the statement of cash flows:

Accepted Answer

A) investing activities 
B) operating activities 
C) financing activities 
D) noncash investing and financing activities 
A) investing activities 
B) operating activities 
C) financing activities 
D) noncash investing and financing activities

Question 13

Payment of cash for interest is considered which of the following in the statement of cash flows?

Accepted Answer

A) Operating 
B) Financing 
C) Investing 
D) B and C 
A) Operating 
B) Financing 
C) Investing 
D) B and C

Question 14

Which of the following would not appear on the statement of cash flows?

Accepted Answer

A) cash dividend 
B) stock dividend 
C) purchase of treasury stock 
D) issuance of stock for equipment 
A) cash dividend 
B) stock dividend 
C) purchase of treasury stock 
D) issuance of stock for equipment

Question 15

To assess a company's ability to generate positive future cash flows,the _________ activities section would be analyzed.

Accepted Answer

A) financing 
B) investing 
C) operating 
D) noncash investing and financing 
A) financing 
B) investing 
C) operating 
D) noncash investing and financing

Question 16

Which method shows the net cash flows from operating activities without presenting the individual cash inflows and outflows from those activities.

Accepted Answer

A) indirect method 
B) direct method 
C) both methods 
D) neither method 
A) indirect method 
B) direct method 
C) both methods 
D) neither method

Question 17

Using the indirect method (statement of cash flows),an increase in current liabilities would:

Accepted Answer

A) be subtracted from net income 
B) be added to net income 
C) have no adjustment made to net income 
D) be added to the investing section of the statement of cash flows 
A) be subtracted from net income 
B) be added to net income 
C) have no adjustment made to net income 
D) be added to the investing section of the statement of cash flows

Question 18

Using the indirect method (statement of cash flows),a decrease in current liabilities would:

Accepted Answer

A) be subtracted from net income 
B) be added to net income 
C) have no adjustment made to net income 
D) be added to the investing section of the statement of cash flows 
A) be subtracted from net income 
B) be added to net income 
C) have no adjustment made to net income 
D) be added to the investing section of the statement of cash flows

Question 19

On a statement of cash flows using the direct format,depreciation expense is:

Accepted Answer

A) deducted from net income in the operating activities section 
B) included as an outflow in the investing activities section 
C) added to net income in the operating activities section 
D) ignored,since it is a noncash expense 
A) deducted from net income in the operating activities section 
B) included as an outflow in the investing activities section 
C) added to net income in the operating activities section 
D) ignored,since it is a noncash expense

Question 20

Which of the following activities is correctly associated with its cash flow classification?

Accepted Answer

A) Operating - Sale of company's own common stock 
B) Financing - Purchase of Treasury Stock 
C) Investing - Payment of rent for next two months 
D) Financing - Payment of interest on bonds payable 
A) Operating - Sale of company's own common stock 
B) Financing - Purchase of Treasury Stock 
C) Investing - Payment of rent for next two months 
D) Financing - Payment of interest on bonds payable

The reporting format for the statement of cash flows which shows the difference between accrual-based net income and cash flows from operations is the:

The issuance of common stock in exchange for a patent would be reported in the following section of the statement of cash flows:

Explain why many analysts consider operating activities the most important of the three activities reported on the statement of cash flow.

Cost of Goods Sold for the period totaled $598,000,accounts payable had a beginning and ending balance of $97,000 and $86,500,respectively,and inventory had a beginning and ending balance of $156,000 and $142,500,respectively.Cash payments for inventory were:

Collections from customers would be reported in the following section of the statement of cash flows:

Chair Inc.has the below financial information.Using the direct method (statement of cash flows),solve for cash received from customers (show your work). Other Information: Customer Sales ==> $ 900,000

The beginning balance in accounts receivable is $ 8,000.Sales during the period equaled $ 15,000.The ending balance in accounts receivable equals $ 2,000.What was the cash received from customers?

The conversion of preferred stock into common stock would be reported in the following section of the statement of cash flows:

If a firm sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation,how is this reported in the statement of cash flows?

On a statement of cash flows using the indirect format,an increase in taxes payable is:

The purchase of machinery by signing a long-term note payable would be reported in the following section of the statement of cash flows:

Payment of cash for interest is considered which of the following in the statement of cash flows?

Which of the following would not appear on the statement of cash flows?

To assess a company's ability to generate positive future cash flows,the _________ activities section would be analyzed.

Which method shows the net cash flows from operating activities without presenting the individual cash inflows and outflows from those activities.

Using the indirect method (statement of cash flows),an increase in current liabilities would:

Using the indirect method (statement of cash flows),a decrease in current liabilities would:

On a statement of cash flows using the direct format,depreciation expense is:

Which of the following activities is correctly associated with its cash flow classification?

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Comprehensive Evaluation

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Exam 19: Company Performance: Cash Flows

The reporting format for the statement of cash flows which shows the difference between accrual-based net income and cash flows from operations is the:

The issuance of common stock in exchange for a patent would be reported in the following section of the statement of cash flows:

Explain why many analysts consider operating activities the most important of the three activities reported on the statement of cash flow.

Cost of Goods Sold for the period totaled $598,000,accounts payable had a beginning and ending balance of $97,000 and $86,500,respectively,and inventory had a beginning and ending balance of $156,000 and $142,500,respectively.Cash payments for inventory were:

Collections from customers would be reported in the following section of the statement of cash flows:

Chair Inc.has the below financial information.Using the direct method (statement of cash flows),solve for cash received from customers (show your work). Other Information: Customer Sales ==> $ 900,000

The beginning balance in accounts receivable is $ 8,000.Sales during the period equaled $ 15,000.The ending balance in accounts receivable equals $ 2,000.What was the cash received from customers?

The conversion of preferred stock into common stock would be reported in the following section of the statement of cash flows:

If a firm sells for $8,000 equipment that cost $25,000 and has $20,000 of accumulated depreciation,how is this reported in the statement of cash flows?

On a statement of cash flows using the indirect format,an increase in taxes payable is:

The purchase of machinery by signing a long-term note payable would be reported in the following section of the statement of cash flows:

Payment of cash for interest is considered which of the following in the statement of cash flows?

Which of the following would not appear on the statement of cash flows?

To assess a company's ability to generate positive future cash flows,the _________ activities section would be analyzed.

Which method shows the net cash flows from operating activities without presenting the individual cash inflows and outflows from those activities.

Using the indirect method (statement of cash flows),an increase in current liabilities would:

Using the indirect method (statement of cash flows),a decrease in current liabilities would:

On a statement of cash flows using the direct format,depreciation expense is:

Which of the following activities is correctly associated with its cash flow classification?

Accounting and Business

Business Processes and Accounting Information

Operating Processes: Planning and Control

Short-Term Decision Making

Strategic Planning Regarding Operating Processes

Planning, The Balanced Scorecard, and Budgeting

Accounting Information Systems

Purchasinghuman Resourcespayment Process: Recording and Evaluating Expenditure Process Activities

Recording and Evaluating Conversion Process Activities

Recording and Evaluating Revenue Process Activities

Time Value of Money

Planning Investments: Capital Budgeting

Planning Equity Financing

Planning Debt Financing

Recording and Evaluating Capital Resource Process Activities: Financing

Recording and Evaluating Capital Resource Process Activities: Investing

Company Performance: Profitability

Company Performance: Owners Equity and Financial Position

Company Performance: Comprehensive Evaluation

Filters