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?

The direct method of presenting the financing activities section of the statement of cash flow reconciles net income to net cash provided by financing activities.

A company sells equipment at a loss. If the company prepares the statement of cash flows using the indirect method or the direct method, where would this transaction appear?

The direct method lists the receipt and payment of cash for specific operating activities.

A company sold equipment with a book value of $10,000 at a gain of $2,500. How much will be reported in the investing activities section of the statement of cash flows as cash received upon the sale of the equipment?

All of the following would be done when calculating the change in cash from operating activities under the indirect method except

Which of the following items would be reported as an operating activity on the statement of cash flows?

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 inventory?

A company uses the indirect method to prepare the statement of cash flows. It sold a piece of land at a gain of $3,600. The equipment was purchased several years ago for $70,500 and had accumulated depreciation of $52,900. What is reported under the operating activities section on the statement of cash flows?

A statement of cash flows is generated to show

Regarding the statement of cash flows, which of the following is true?

For anything to be considered a "cash equivalent," the investment must be

A corporation reported net income for the year of $28,500. The following items were reported on the income statement and balance sheet. Compute cash flows from operating activities using the indirect method.

The ________ section from the statement of cash flows includes activities that affect current assets and current liabilities on the balance sheet.

Smithson Corporation had the following selected balance sheet changes for the past year: The company's operating income for the year was $35,000. What is the net cash provided by operating activities for last year on the statement of cash flows for Smithson Corporation (using the indirect method)?

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash paid for interest be presented on the statement?

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 inventory?

Computing cash generated from operating activities is

List three ways that owners and investors use the statement of cash flows.

Which of the following would appear on a statement of cash flows prepared using the direct method?