Question 1

Which one of the following transactions should be classified as a financing activity on the statement of cash flows?

Accepted Answer

A) Purchase of equipment. 
B) Purchase of the company's own stock. 
C) Sale of a long-term investment. 
D) Payment of interest to a lender. 
A) Purchase of equipment. 
B) Purchase of the company's own stock. 
C) Sale of a long-term investment. 
D) Payment of interest to a lender.

Question 2

Adah Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement?

Accepted Answer

The answer of Adah Corporation prepares its statement of cash...

Question 3

Sonier Corporation's most recent balance sheet appears below:   The net income for the year was $97.Cash dividends were $19.The company did not issue any bonds or repurchase any of its common stock during the year.The net cash provided by (used in)financing activities for the year was:

Accepted Answer

A) ($43) 
B) ($19) 
C) ($25) 
D) $1 
A) ($43) 
B) ($19) 
C) ($25) 
D) $1

Question 4

Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?

Accepted Answer

A) an increase in accounts receivable. 
B) an increase in prepaid expenses. 
C) an increase in accrued liabilities. 
D) an increase in property, plant and equipment. 
A) an increase in accounts receivable. 
B) an increase in prepaid expenses. 
C) an increase in accrued liabilities. 
D) an increase in property, plant and equipment.

Question 5

Norbury Corporation's net income last year was $34,000.The company did not sell or retire any property, plant, and equipment last year.Changes in selected balance sheet accounts for the year appear below:    Based solely on this information, the net cash provided by (used in)operating activities under the indirect method on the statement of cash flows would be:

Accepted Answer

A) $52,000 
B) $66,000 
C) $53,000 
D) $16,000 
A) $52,000 
B) $66,000 
C) $53,000 
D) $16,000

Question 6

The net cash provided by operating activities on the statement of cash flows does not include any dividends paid to the company's own shareholders.

Accepted Answer

A) True 
 B)False

Question 7

Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 8

Thunder Corporation's balance sheet and income statement appear below:     The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $24.

Required:
Prepare a statement of cash flows in good form using the indirect method.

Accepted Answer

The answer of Thunder Corporation's balance sheet and income statement...

Question 9

The Warrel Corporation reported the following data for last year:   Based solely on this information, the net cash provided by (used in)financing activities on the statement of cash flows would be:

Accepted Answer

A) $12,000 
B) $34,000 
C) $(12,000) 
D) $(18,000) 
A) $12,000 
B) $34,000 
C) $(12,000) 
D) $(18,000)

Question 10

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income.

Accepted Answer

A) True 
 B)False

Question 11

When a company pays cash to repurchase its own common stock, this is reported as a cash outflow in the financing activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 12

The net cash provided by (used in)financing activities last year was:

Accepted Answer

A) $(104,000) 
B) $104,000 
C) $(60,000) 
D) $60,000 
A) $(104,000) 
B) $104,000 
C) $(60,000) 
D) $60,000

Question 13

An increase in accrued liabilities of $1,000 during a year would be shown on the company's statement of cash flows prepared under the indirect method as:

Accepted Answer

A) an addition to net income of $1,000 in order to arrive at net cash provided by operating activities. 
B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities. 
C) a deduction of $1,000 under investing activities. 
D) an addition of $1,000 under financing activities. 
A) an addition to net income of $1,000 in order to arrive at net cash provided by operating activities. 
B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities. 
C) a deduction of $1,000 under investing activities. 
D) an addition of $1,000 under financing activities.

Question 14

An increase in accounts receivable of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

Accepted Answer

A) an addition to net income of $1,000 in order to arrive at net cash provided by operating activities. 
B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities. 
C) an addition of $1,000 under financing activities. 
D) a deduction of $1,000 under financing activities. 
A) an addition to net income of $1,000 in order to arrive at net cash provided by operating activities. 
B) a deduction from net income of $1,000 in order to arrive at net cash provided by operating activities. 
C) an addition of $1,000 under financing activities. 
D) a deduction of $1,000 under financing activities.

Question 15

Birchett Corporation's most recent balance sheet appears below:   The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $22.The net cash provided by (used in)operating activities for the year was:

Accepted Answer

A) $86 
B) $5 
C) $96 
D) $130 
A) $86 
B) $5 
C) $96 
D) $130

Question 16

Which of the following is correct regarding the operating activities section of the statement of cash flows?

Accepted Answer

A) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be added to net income 
B) The change in Accounts Receivable will be added to net income; The change in Inventory will be subtracted from net income 
C) The change in Accounts Receivable will be added to net income; The change in Inventory will be added to net income 
D) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be subtracted from net income 
A) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be added to net income 
B) The change in Accounts Receivable will be added to net income; The change in Inventory will be subtracted from net income 
C) The change in Accounts Receivable will be added to net income; The change in Inventory will be added to net income 
D) The change in Accounts Receivable will be subtracted from net income; The change in Inventory will be subtracted from net income

Question 17

Tani Corporation's most recent balance sheet appears below:   The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $4.The net cash provided by (used in)investing activities for the year was:

Accepted Answer

A) ($45) 
B) $45 
C) ($3) 
D) $3 
A) ($45) 
B) $45 
C) ($3) 
D) $3

Question 18

Shoshoni Corporation prepares its statement of cash flows using the indirect method.Which of the following would be added to net income in the operating activities section of the statement?

Accepted Answer

The answer of Shoshoni Corporation prepares its statement of cash...

Question 19

Cash payments to insurers and utility providers are considered operating activities on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 20

The data given below are from the accounting records of the Kuhn Corporation:    Based on this information, the net cash provided by (used in)operating activities using the indirect method would be:

Accepted Answer

A) $55,000 
B) $58,000 
C) $50,000 
D) $60,000 
A) $55,000 
B) $58,000 
C) $50,000 
D) $60,000

Which one of the following transactions should be classified as a financing activity on the statement of cash flows?

Adah Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement?

Sonier Corporation's most recent balance sheet appears below: The net income for the year was $97.Cash dividends were $19.The company did not issue any bonds or repurchase any of its common stock during the year.The net cash provided by (used in)financing activities for the year was:

Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?

The net cash provided by operating activities on the statement of cash flows does not include any dividends paid to the company's own shareholders.

Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows.

The Warrel Corporation reported the following data for last year: Based solely on this information, the net cash provided by (used in)financing activities on the statement of cash flows would be:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income.

When a company pays cash to repurchase its own common stock, this is reported as a cash outflow in the financing activities section of the statement of cash flows.

The net cash provided by (used in)financing activities last year was:

An increase in accrued liabilities of $1,000 during a year would be shown on the company's statement of cash flows prepared under the indirect method as:

An increase in accounts receivable of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

Birchett Corporation's most recent balance sheet appears below: The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $22.The net cash provided by (used in)operating activities for the year was:

Which of the following is correct regarding the operating activities section of the statement of cash flows?

Tani Corporation's most recent balance sheet appears below: The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $4.The net cash provided by (used in)investing activities for the year was:

Shoshoni Corporation prepares its statement of cash flows using the indirect method.Which of the following would be added to net income in the operating activities section of the statement?

Cash payments to insurers and utility providers are considered operating activities on the statement of cash flows.

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in)operating activities using the indirect method would be:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 13: Statement of Cash Flows

Which one of the following transactions should be classified as a financing activity on the statement of cash flows?

Adah Corporation prepares its statement of cash flows using the indirect method.Which of the following would be subtracted from net income in the operating activities section of the statement?

Sonier Corporation's most recent balance sheet appears below: The net income for the year was $97.Cash dividends were $19.The company did not issue any bonds or repurchase any of its common stock during the year.The net cash provided by (used in)financing activities for the year was:

Which of the following would be added to net income in the operating activities section of a statement of cash flows prepared using the indirect method?

The net cash provided by operating activities on the statement of cash flows does not include any dividends paid to the company's own shareholders.

Cash received from the sale of equipment the company had used in its own operations would be considered an operating activity on a statement of cash flows.

The Warrel Corporation reported the following data for last year: Based solely on this information, the net cash provided by (used in)financing activities on the statement of cash flows would be:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, a loss on the sale of an asset would be added to net income.

When a company pays cash to repurchase its own common stock, this is reported as a cash outflow in the financing activities section of the statement of cash flows.

The net cash provided by (used in)financing activities last year was:

An increase in accrued liabilities of $1,000 during a year would be shown on the company's statement of cash flows prepared under the indirect method as:

An increase in accounts receivable of $1,000 over the course of a year would be shown on the company's statement of cash flows prepared under the indirect method as:

Birchett Corporation's most recent balance sheet appears below: The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $22.The net cash provided by (used in)operating activities for the year was:

Which of the following is correct regarding the operating activities section of the statement of cash flows?

Tani Corporation's most recent balance sheet appears below: The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $4.The net cash provided by (used in)investing activities for the year was:

Shoshoni Corporation prepares its statement of cash flows using the indirect method.Which of the following would be added to net income in the operating activities section of the statement?

Cash payments to insurers and utility providers are considered operating activities on the statement of cash flows.

The data given below are from the accounting records of the Kuhn Corporation: Based on this information, the net cash provided by (used in)operating activities using the indirect method would be:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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