Exam 13: Statement of Cash Flows

A company uses the direct method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts payable?

Operating activities resulting from the sales of goods and services relate to

A company uses the indirect method to prepare the statement of cash flows. It presents the following amounts on its financial statements. *Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable?

How will the amount of cash payments to employees be computed if a company uses the direct method to prepare the statement of cash flows?

The income statement and a partial balance sheet for Jetson Company is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Jetson Company Income Statement For the Current Year Jetson Company Partial Balance Sheet End of this year

Which of the following descriptions do apply to cash equivalents?

For purposes of the statement of cash flows, "cash" includes cash on hand, cash in the bank and cash equivalents.

A company reported beginning plant assets, net of depreciation, of $655,000 and an ending amount of $732,550. Depreciation expense of $48,400 and a loss on the sale of equipment of $5,500 were reported on the income statement. The company acquired $213,800 of plant assets during the year. How much will be reported as cash received from the sale of equipment in the investing activities section of the statement of cash flows?

Of the following, which is not a cash inflow from a financing activity?

On the statement of cash flows, which of the following sections includes the purchase and sale of treasury stock?

If a company uses the indirect method to prepare the statement of cash flows, how will depreciation be presented on the statement?

To check the accuracy of the ending total on the statement of cash flows, the balance in the ________ can be used.

Investors and management use the statement of cash flows to evaluate a firm's profitability.

Where are noncash investing and financing activities reported?

Cash equivalents include investments that cannot be readily converted into cash.

For each of the following independent transactions, indicate the type of activity (operating, investing or financing)and the effect on cash (amount and increase or decrease).

A company uses the direct method to prepare the statement of cash flows. How will the amount of cash payments to suppliers be computed?

A company uses the indirect method to prepare the statement of cash flows. It sold a piece of equipment at a loss of $3,600. The equipment was purchased several years ago for $70,500 and had accumulated depreciation of $56,900. What is reported under the operating activities section on the statement of cash flows?

A company uses the indirect method to prepare the statement of cash flows. How will a loss from the sale of a building be presented on the statement?