Question 1

On the statement of cash flows, which of the following sections includes borrowing money and paying off loans?

Accepted Answer

A) Investing section 
B) Financing section 
C) Operating section 
D) None of the above 
A) Investing section 
B) Financing section 
C) Operating section 
D) None of the above

Question 2

Investing activities include activities that affect the current asset section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

If a company uses the direct method to prepare the statement of cash flows, how will the amount of cash payments to employees be computed?

Accepted Answer

A) The amount of cash payments to employees is computed as salary expense plus the ending balance salaries payable. 
B) The amount of cash payments to employees is computed as salary expense plus the decrease in salaries payable. 
C) The amount of cash payments to employees is computed as salary expense plus the increase in salaries payable. 
D) The amount of cash payments to employees is computed as salary expense plus the beginning balance in salaries payable. 
A) The amount of cash payments to employees is computed as salary expense plus the ending balance salaries payable. 
B) The amount of cash payments to employees is computed as salary expense plus the decrease in salaries payable. 
C) The amount of cash payments to employees is computed as salary expense plus the increase in salaries payable. 
D) The amount of cash payments to employees is computed as salary expense plus the beginning balance in salaries payable.

Question 4

Activities that are included in the operating activities section of the statement of cash flows include which of the following?

Accepted Answer

A) Activities that obtain the cash needed to launch and sustain the business 
B) Activities that increase or decrease long-term assets 
C) Activities that create revenue or expenses in the entity's major line of business 
D) None of the above 
A) Activities that obtain the cash needed to launch and sustain the business 
B) Activities that increase or decrease long-term assets 
C) Activities that create revenue or expenses in the entity's major line of business 
D) None of the above

Question 5

Which of the following is the primary source of cash over the life of a business?

Accepted Answer

A) Financing activities 
B) Operating activities 
C) Investing activities 
D) None of the above 
A) Financing activities 
B) Operating activities 
C) Investing activities 
D) None of the above

Question 6

Identify and describe the three sections of the statement of cash flows.

Accepted Answer

a. The operating activities section of t

Question 7

The ________ section from the statement of cash flows would include the payment of a long-term mortgage payable with cash.

Accepted Answer

A) investing 
B) financing 
C) operating 
D) None of the above 
A) investing 
B) financing 
C) operating 
D) None of the above

Question 8

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

Accepted Answer

A) Investing section 
B) Operating section 
C) Financing section 
D) None of the above 
A) Investing section 
B) Operating section 
C) Financing section 
D) None of the above

Question 9

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 inventory?

Accepted Answer

A) The decrease of $20,000 will be subtracted from net income. 
B) The decrease of $20,000 will be added to net income. 
C) The decrease of $20,000 will be subtracted from cost of goods sold to determine payments to suppliers. 
D) The decrease of $20,000 will be added to cost of goods sold to determine payments to suppliers. 
A) The decrease of $20,000 will be subtracted from net income. 
B) The decrease of $20,000 will be added to net income. 
C) The decrease of $20,000 will be subtracted from cost of goods sold to determine payments to suppliers. 
D) The decrease of $20,000 will be added to cost of goods sold to determine payments to suppliers.

Question 10

When a company uses the direct method to present the statement of cash flows, cash received from the sale of a long-term asset increases the amount of net cash provided by investing activities.

Accepted Answer

A) True 
 B)False

Question 11

If a corporation shows a net loss on its income statement, which of the following is true?

Accepted Answer

A) The company will not be able to sell stock. 
B) The company may still have a net increase in cash. 
C) The company will not be able to pay dividends. 
D) The company may still have an increase in retained earnings. 
A) The company will not be able to sell stock. 
B) The company may still have a net increase in cash. 
C) The company will not be able to pay dividends. 
D) The company may still have an increase in retained earnings.

Question 12

On the statement of cash flows, which of the following would be considered an investing activity?

Accepted Answer

A) A purchase of treasury stock 
B) A sale of land 
C) Depreciation of equipment 
D) A sale of inventory 
A) A purchase of treasury stock 
B) A sale of land 
C) Depreciation of equipment 
D) A sale of inventory

Question 13

The balance sheet for Bostick Corporation follows:   Operating income for the period was $13,650, while cash dividends paid were $3,770. The overall total of the uses of cash for Bostick Corporation for the year was

Accepted Answer

A) $32,320. 
B) $13,800. 
C) $2,450. 
D) $54,970. 
A) $32,320. 
B) $13,800. 
C) $2,450. 
D) $54,970.

Question 14

Which of the following is true about a statement of cash flows?

Accepted Answer

A) The statement of cash flows is one of the required financial statements for publicly-held companies. 
B) The statement of cash flows is prepared at the option of management. 
C) The statement of cash flows may be combined with the income statement. 
D) The statement of cash flows does not have to be completed if an income statement is prepared. 
A) The statement of cash flows is one of the required financial statements for publicly-held companies. 
B) The statement of cash flows is prepared at the option of management. 
C) The statement of cash flows may be combined with the income statement. 
D) The statement of cash flows does not have to be completed if an income statement is prepared.

Question 15

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 receivable?

Accepted Answer

A) The increase of $15,000 will be subtracted from net income. 
B) The increase of $15,000 will be subtracted from sales to determine cash received from customers. 
C) The increase of $15,000 will be added to sales to determine cash received from customers. 
D) The increase of $15,000 will be added to net income. 
A) The increase of $15,000 will be subtracted from net income. 
B) The increase of $15,000 will be subtracted from sales to determine cash received from customers. 
C) The increase of $15,000 will be added to sales to determine cash received from customers. 
D) The increase of $15,000 will be added to net income.

Question 16

On the statement of cash flows, which of the following sections would include the purchase of a building paid for with cash?

Accepted Answer

A) Investing section 
B) Operating section 
C) Financing section 
D) None of the above 
A) Investing section 
B) Operating section 
C) Financing section 
D) None of the above

Question 17

Which of the following would be considered an investing activity on the statement of cash flows?

Accepted Answer

A) An issuance of stock 
B) A sale of equipment 
C) Payment of dividends 
D) Purchase of inventory 
A) An issuance of stock 
B) A sale of equipment 
C) Payment of dividends 
D) Purchase of inventory

Question 18

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

Accepted Answer

A) Financing section 
B) Investing section 
C) Operating section 
D) None of the above 
A) Financing section 
B) Investing section 
C) Operating section 
D) None of the above

Question 19

Which of the following items is one of the three sections on the statement of cash flows?

Accepted Answer

A) Retained earnings 
B) Total liabilities 
C) Total stockholder's equity 
D) Cash from investing activities 
A) Retained earnings 
B) Total liabilities 
C) Total stockholder's equity 
D) Cash from investing activities

Question 20

On the statement of cash flows, which of the following items would be reported in the financing activities section?

Accepted Answer

A) Cash paid for interest 
B) Cash received from customers 
C) Cash received from a sale of treasury stock 
D) Cash paid for operating expenses 
A) Cash paid for interest 
B) Cash received from customers 
C) Cash received from a sale of treasury stock 
D) Cash paid for operating expenses

On the statement of cash flows, which of the following sections includes borrowing money and paying off loans?

Investing activities include activities that affect the current asset section of the balance sheet.

If a company uses the direct method to prepare the statement of cash flows, how will the amount of cash payments to employees be computed?

Activities that are included in the operating activities section of the statement of cash flows include which of the following?

Which of the following is the primary source of cash over the life of a business?

Identify and describe the three sections of the statement of cash flows.

The ________ section from the statement of cash flows would include the payment of a long-term mortgage payable with cash.

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

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 inventory?

When a company uses the direct method to present the statement of cash flows, cash received from the sale of a long-term asset increases the amount of net cash provided by investing activities.

If a corporation shows a net loss on its income statement, which of the following is true?

On the statement of cash flows, which of the following would be considered an investing activity?

The balance sheet for Bostick Corporation follows: Operating income for the period was $13,650, while cash dividends paid were $3,770. The overall total of the uses of cash for Bostick Corporation for the year was

Which of the following is true about a 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 receivable?

On the statement of cash flows, which of the following sections would include the purchase of a building paid for with cash?

Which of the following would be considered an investing activity on the statement of cash flows?

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

Which of the following items is one of the three sections on the statement of cash flows?

On the statement of cash flows, which of the following items would be reported in the financing activities section?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Financial Statement Analysis

Sustainability

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Exam 13: Statement of Cash Flows

On the statement of cash flows, which of the following sections includes borrowing money and paying off loans?

Investing activities include activities that affect the current asset section of the balance sheet.

If a company uses the direct method to prepare the statement of cash flows, how will the amount of cash payments to employees be computed?

Activities that are included in the operating activities section of the statement of cash flows include which of the following?

Which of the following is the primary source of cash over the life of a business?

Identify and describe the three sections of the statement of cash flows.

The ________ section from the statement of cash flows would include the payment of a long-term mortgage payable with cash.

Which of the following sections from the statement of cash flows includes activities that increase and decrease long-term assets?

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 inventory?

When a company uses the direct method to present the statement of cash flows, cash received from the sale of a long-term asset increases the amount of net cash provided by investing activities.

If a corporation shows a net loss on its income statement, which of the following is true?

On the statement of cash flows, which of the following would be considered an investing activity?

The balance sheet for Bostick Corporation follows: Operating income for the period was $13,650, while cash dividends paid were $3,770. The overall total of the uses of cash for Bostick Corporation for the year was

Which of the following is true about a 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 receivable?

On the statement of cash flows, which of the following sections would include the purchase of a building paid for with cash?

Which of the following would be considered an investing activity on the statement of cash flows?

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

Which of the following items is one of the three sections on the statement of cash flows?

On the statement of cash flows, which of the following items would be reported in the financing activities section?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Financial Statement Analysis

Sustainability

Filters