Question 1

You are preparing a Statement of Cash Flows.Complete the following schedule to compute cash flow from operating activities:
Statement of Cash Flows

Accepted Answer

Operating Activities

Question 2

Generally,only investments with original maturities (to the investor) of less than three months qualify as a cash equivalent.

Accepted Answer

A) True 
 B)False

Question 3

The Statement of Cash Flows is dated at a specific point in time like the balance sheet.

Accepted Answer

A) True 
 B)False

Question 4

Which method or format for preparing the Statement of Cash Flows reports the major operating cash flows on an individual line-item basis?

Accepted Answer

A) Only direct method 
B) Only indirect method 
C) Both direct and indirect 
D) Neither direct nor indirect 
A) Only direct method 
B) Only indirect method 
C) Both direct and indirect 
D) Neither direct nor indirect

Question 5

The following item is found on the income statement of a corporation: Gain from sale of equipment,$5,000.The equipment sold during the year originally cost $20,000,had accumulated depreciation of $16,000 and was sold for cash.The Statement of Cash Flows should show an inflow of cash from investing activities of:

Accepted Answer

A) $1,000 
B) $4,000 
C) $5,000 
D) $9,000 
A) $1,000 
B) $4,000 
C) $5,000 
D) $9,000

Question 6

A loss on the sale of machinery in the ordinary course of business should be presented in a Statement of Cash Flows as a(n):

Accepted Answer

A) Adjustment to net income in the reconciliation of net income to cash from operating activities. 
B) Inflow from operating activities. 
C) Inflow from investing activities. 
D) Outflow from investing activities. 
A) Adjustment to net income in the reconciliation of net income to cash from operating activities. 
B) Inflow from operating activities. 
C) Inflow from investing activities. 
D) Outflow from investing activities.

Question 7

Under IFRS,dividends received may be classified as:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Operating activities or financing activities. 
E) Operating activities or investing activities. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Operating activities or financing activities. 
E) Operating activities or investing activities.

Question 8

Given the following data: Income Statement
For Year Ended Dec. 31, 2011   Additional information:
1.Increase in accounts receivable during 2011 - $25,000
2.Decrease in inventory during 2011 - $13,000
3.Decrease in accounts payable during 2001 - $28,000
4.Sale of old equipment for cash - $65,000
5.Dividends declared - $45,000; dividends paid - $40,000
6.New building acquired by issuing common shares - $42,000
7.Sold bonds for cash - proceeds of $75,000
What was net cash inflow (outflow) from operating activities during 2011?

Accepted Answer

The answer of Given the following data: Income Statement
For Year...

Question 9

The following information was provided by the records of QRS for the current reporting year: $\begin{array}{|l|r|}
\hline \text { Cost of goods sold (as reported on the income statement).. } & \$ 80,000 \
\hline \text { Inventory increase } & 20,000 \
\hline \text { Accounts payable increase } & 3,000 \
\hline
\end{array}$ The cash paid to suppliers was:

Accepted Answer

A) $63,000 
B) $77,000 
C) $80,000 
D) $97,000 
A) $63,000 
B) $77,000 
C) $80,000 
D) $97,000

Question 10

Which of the following would cause an inflow of cash?

Accepted Answer

A) Payment of a long-term bond 
B) Sale for cash of a short-term investment at its cost 
C) Payment of accounts payable 
D) Repurchase of common stock for cash 
E) Accrual of a dividend 
A) Payment of a long-term bond 
B) Sale for cash of a short-term investment at its cost 
C) Payment of accounts payable 
D) Repurchase of common stock for cash 
E) Accrual of a dividend

Question 11

Under IFRS,dividends received may be classified as operating or financing activities.

Accepted Answer

A) True 
 B)False

Question 12

When preparing the Statement of Cash Flows,which of the following sources of information should be consulted after considering all others?

Accepted Answer

A) Income statement 
B) Comparative balance sheet in general 
C) Remaining unexplained balance sheet account changes 
D) Retained earnings statement 
E) Company records 
A) Income statement 
B) Comparative balance sheet in general 
C) Remaining unexplained balance sheet account changes 
D) Retained earnings statement 
E) Company records

Question 13

Cash flows from investing activities would include all of these except:

Accepted Answer

A) Proceeds from sale of operating assets. 
B) Proceeds from sale of long-term investments 
C) Interest paid on notes receivable. 
D) Proceeds from sale of securities available for sale. 
E) Collection of principal amounts of loans made to other parties. 
A) Proceeds from sale of operating assets. 
B) Proceeds from sale of long-term investments 
C) Interest paid on notes receivable. 
D) Proceeds from sale of securities available for sale. 
E) Collection of principal amounts of loans made to other parties.

Question 14

The income statement for CBA reported a net loss of $14,000.Also,the statement reported depreciation expense of $12,000 and amortization of patents of $6,000.Assuming no additional "adjustments to reconcile net income to cash from operating activities," the cash flow from operations would be a:

Accepted Answer

A) $4,000 inflow. 
B) $6,000 inflow. 
C) $16,000 inflow. 
D) $30,000 inflow. 
E) ($4,000) outflow. 
A) $4,000 inflow. 
B) $6,000 inflow. 
C) $16,000 inflow. 
D) $30,000 inflow. 
E) ($4,000) outflow.

Question 15

KWB made the following cash outflows during 2011: $\begin{array} { l  }
 \text {Cash for dividend payment on KWB common shares }&\$5,000 \
 \text {Cash for capital assets }&50,000 \
 \text {Cash for interest. }&3,000 \
 \text {Cash for purchase of JCK common stock. }& 40,000\
\end{array}$
 What would be KWB's cash outflows for investing and financing activities for 2011 under IFRS?
Note: Under IFRS,dividends and interest paid may also be classified as operating cash flows.

Accepted Answer

The answer of KWB made the following cash outflows during...

Question 16

In preparing a Statement of Cash Flows,you encountered the following transaction of February 1,2013: acquired a small office building in exchange for 5,000 of our common shares; market value $15 per share.How should this transaction be reported on the Statement of Cash Flows?

Accepted Answer

A) Report as a concurrent inflow and outflow of cash on the Statement of Cash Flows. 
B) Report as a noncash investing and financing activity. 
C) Not reported on the Statement of Cash Flows because it did not affect cash, but details explained in the disclosure notes. 
D) Report on a Statement of Cash Flows as an investing activity. 
A) Report as a concurrent inflow and outflow of cash on the Statement of Cash Flows. 
B) Report as a noncash investing and financing activity. 
C) Not reported on the Statement of Cash Flows because it did not affect cash, but details explained in the disclosure notes. 
D) Report on a Statement of Cash Flows as an investing activity.

Question 17

Reported net income for ABC for 2013 was $20,000.Additional information is as follows:   The Statement of Cash Flows,indirect method,would report cash flow from operations of
$_______________________.

Accepted Answer

Net income,$20,000 + (b) $2,00

Question 18

Cash paid to suppliers is accrual based cost of goods sold plus the increase in inventory plus the increase in accounts payable for the year.

Accepted Answer

A) True 
 B)False

Question 19

The Statement of Cash Flows can be based on (a) cash only or (b) cash plus cash equivalents.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not an inflow of cash?

Accepted Answer

A) Collection of a short-term receivable 
B) Sale of a capital asset for cash 
C) Cash borrowed on a short-term note 
D) Depreciation expense 
A) Collection of a short-term receivable 
B) Sale of a capital asset for cash 
C) Cash borrowed on a short-term note 
D) Depreciation expense

You are preparing a Statement of Cash Flows.Complete the following schedule to compute cash flow from operating activities: Statement of Cash Flows

Generally,only investments with original maturities (to the investor) of less than three months qualify as a cash equivalent.

The Statement of Cash Flows is dated at a specific point in time like the balance sheet.

Which method or format for preparing the Statement of Cash Flows reports the major operating cash flows on an individual line-item basis?

A loss on the sale of machinery in the ordinary course of business should be presented in a Statement of Cash Flows as a(n):

Under IFRS,dividends received may be classified as:

The following information was provided by the records of QRS for the current reporting year: Cost of goods sold (as reported on the income statement).. \ 80,000 Inventory increase 20,000 Accounts payable increase 3,000 The cash paid to suppliers was:

Which of the following would cause an inflow of cash?

Under IFRS,dividends received may be classified as operating or financing activities.

When preparing the Statement of Cash Flows,which of the following sources of information should be consulted after considering all others?

Cash flows from investing activities would include all of these except:

The income statement for CBA reported a net loss of $14,000.Also,the statement reported depreciation expense of $12,000 and amortization of patents of $6,000.Assuming no additional "adjustments to reconcile net income to cash from operating activities," the cash flow from operations would be a:

In preparing a Statement of Cash Flows,you encountered the following transaction of February 1,2013: acquired a small office building in exchange for 5,000 of our common shares; market value $15 per share.How should this transaction be reported on the Statement of Cash Flows?

Reported net income for ABC for 2013 was $20,000.Additional information is as follows: The Statement of Cash Flows,indirect method,would report cash flow from operations of $_______________________.

Cash paid to suppliers is accrual based cost of goods sold plus the increase in inventory plus the increase in accounts payable for the year.

The Statement of Cash Flows can be based on (a) cash only or (b) cash plus cash equivalents.

Which of the following is not an inflow of cash?

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Property,Plant,and Equipment; Intangibles; and Goodwill

Depreciation,Amortization,and Impairment

Financial Instruments: Investments in Debt and Equity Securities

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Exam 5: The Statement of Cash Flows

You are preparing a Statement of Cash Flows.Complete the following schedule to compute cash flow from operating activities: Statement of Cash Flows

Generally,only investments with original maturities (to the investor) of less than three months qualify as a cash equivalent.

The Statement of Cash Flows is dated at a specific point in time like the balance sheet.

Which method or format for preparing the Statement of Cash Flows reports the major operating cash flows on an individual line-item basis?

A loss on the sale of machinery in the ordinary course of business should be presented in a Statement of Cash Flows as a(n):

Under IFRS,dividends received may be classified as:

The following information was provided by the records of QRS for the current reporting year: Cost of goods sold (as reported on the income statement).. \ 80,000 Inventory increase 20,000 Accounts payable increase 3,000 The cash paid to suppliers was:

Which of the following would cause an inflow of cash?

Under IFRS,dividends received may be classified as operating or financing activities.

When preparing the Statement of Cash Flows,which of the following sources of information should be consulted after considering all others?

Cash flows from investing activities would include all of these except:

The income statement for CBA reported a net loss of $14,000.Also,the statement reported depreciation expense of $12,000 and amortization of patents of $6,000.Assuming no additional "adjustments to reconcile net income to cash from operating activities," the cash flow from operations would be a:

In preparing a Statement of Cash Flows,you encountered the following transaction of February 1,2013: acquired a small office building in exchange for 5,000 of our common shares; market value $15 per share.How should this transaction be reported on the Statement of Cash Flows?

Reported net income for ABC for 2013 was $20,000.Additional information is as follows: The Statement of Cash Flows,indirect method,would report cash flow from operations of $_______________________.

Cash paid to suppliers is accrual based cost of goods sold plus the increase in inventory plus the increase in accounts payable for the year.

The Statement of Cash Flows can be based on (a) cash only or (b) cash plus cash equivalents.

Which of the following is not an inflow of cash?

The Framework for Financial Reporting

Accounting Judgements

Statements of Income and Comprehensive Income

Statements of Financial Position and Changes in Equity; Disclosure Notes

Financial Assets: Cash and Receivables

Cost-Based Inventories and Cost of Sales

Property,Plant,and Equipment; Intangibles; and Goodwill

Depreciation,Amortization,and Impairment

Financial Instruments: Investments in Debt and Equity Securities

Filters