Question 1

The collection of a loan made to a supplier would be treated as an investing activity on a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 2

Free cash flow is net cash provided by operating activities less capital expenditures.

Accepted Answer

A) True 
 B)False

Question 3

In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section.

Accepted Answer

A) True 
 B)False

Question 4

Tomlin 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 Tomlin Corporation prepares its statement of cash...

Question 5

Carriveau Corporation's most recent balance sheet appears below:    Net income for the year was $172.Cash dividends were $35.The company did not sell or retire any property, plant, and equipment during the year.The net cash provided by (used in)operating activities for the year was:

Accepted Answer

A) $183 
B) $246 
C) $(11) 
D) $161 
A) $183 
B) $246 
C) $(11) 
D) $161

Question 6

Kaeser Corporation's most recent balance sheet appears below:   The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $9.The net cash provided by (used in)investing activities for the year was:

Accepted Answer

A) $17 
B) $67 
C) ($17) 
D) ($67) 
A) $17 
B) $67 
C) ($17) 
D) ($67)

Question 7

Negative free cash flow suggests that the company generated enough cash flow from its operating activities to fund its capital expenditures and dividend payments.

Accepted Answer

A) True 
 B)False

Question 8

NOTE TO THE INSTRUCTOR:  The problem requirement does not indicate whether the indirect or direct method must be used to determine the net cash provided by operating activities.You can, if you choose, specify that either (or even both)methods be used.The solution contains solutions for both methods.
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Dauber Corporation's comparative balance sheet and income statement for last year appear below:     The company declared and paid a cash dividend of $55,000 during the year.It did not sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock.
Required:
a.Construct in good form the operating activities section of the company's statement of cash flows for the year.
b.Construct in good form the investing activities section of the company's statement of cash flows for the year.
c.Construct in good form the financing activities section of the company's statement of cash flows for the year.

Accepted Answer

a.Operating activities
INDIREC

Question 9

The company's net cash provided by (used in)investing activities is:

Accepted Answer

A) $(6,000) 
B) $(54,000) 
C) $(24,000) 
D) $(44,000) 
A) $(6,000) 
B) $(54,000) 
C) $(24,000) 
D) $(44,000)

Question 10

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income.

Accepted Answer

A) True 
 B)False

Question 11

The net cash provided by (used in)investing activities for the year was:

Accepted Answer

A) $26 
B) $15 
C) $(26) 
D) $(15) 
A) $26 
B) $15 
C) $(26) 
D) $(15)

Question 12

What is Stone's net cash provided by (used in)investing activities?

Accepted Answer

A) $0 
B) $(15,000) 
C) $25,000 
D) $45,000 
A) $0 
B) $(15,000) 
C) $25,000 
D) $45,000

Question 13

The free cash flow for the year was:

Accepted Answer

A) $(8) 
B) $14 
C) $128 
D) $308 
A) $(8) 
B) $14 
C) $128 
D) $308

Question 14

Last year Burch Corporation's cash account decreased by $6,000.Net cash provided by (used in)investing activities was $13,000.Net cash provided by (used in)financing activities was $(30,000).On the statement of cash flows, the net cash provided by (used in)operating activities was:

Accepted Answer

A) $(23,000) 
B) $(17,000) 
C) $(6,000) 
D) $11,000 
A) $(23,000) 
B) $(17,000) 
C) $(6,000) 
D) $11,000

Question 15

Based solely on the information above, the net cash provided by (used in)investing activities on the statement of cash flows would be:

Accepted Answer

A) $(280,000) 
B) $(390,000) 
C) $(760,000) 
D) $(1,286,000) 
A) $(280,000) 
B) $(390,000) 
C) $(760,000) 
D) $(1,286,000)

Question 16

Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be subtracted from net income 
B) The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income 
C) The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added to net income 
D) The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be added to net income 
A) The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be subtracted from net income 
B) The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be subtracted from net income 
C) The change in Prepaid Expenses will be subtracted from net income; The change in Income Taxes Payable will be added to net income 
D) The change in Prepaid Expenses will be added to net income; The change in Income Taxes Payable will be added to net income

Question 18

The amount of depreciation added to net income equals the sum of the debits to the Accumulated Depreciation account.

Accepted Answer

A) True 
 B)False

Question 19

The following transactions occurred last year at Jolly Corporation:   Based solely on the above information, the net cash provided by (used in)financing activities for the year on the statement of cash flows would be:

Accepted Answer

A) $179,000 
B) $59,000 
C) $(109,000) 
D) $46,000 
A) $179,000 
B) $59,000 
C) $(109,000) 
D) $46,000

Question 20

Which of the following items would not be classified as an operating activity on the statement of cash flows?

Accepted Answer

A) Cash received from customers. 
B) Dividends paid to the company's own stockholders. 
C) Payments to government agencies for taxes. 
D) Cash paid to compensate employees. 
A) Cash received from customers. 
B) Dividends paid to the company's own stockholders. 
C) Payments to government agencies for taxes. 
D) Cash paid to compensate employees.

The collection of a loan made to a supplier would be treated as an investing activity on a statement of cash flows.

Free cash flow is net cash provided by operating activities less capital expenditures.

In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section.

Tomlin 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?

Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $172.Cash dividends were $35.The company did not sell or retire any property, plant, and equipment during the year.The net cash provided by (used in)operating activities for the year was:

Kaeser Corporation's most recent balance sheet appears below: The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $9.The net cash provided by (used in)investing activities for the year was:

Negative free cash flow suggests that the company generated enough cash flow from its operating activities to fund its capital expenditures and dividend payments.

The company's net cash provided by (used in)investing activities is:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income.

The net cash provided by (used in)investing activities for the year was:

What is Stone's net cash provided by (used in)investing activities?

The free cash flow for the year was:

Last year Burch Corporation's cash account decreased by $6,000.Net cash provided by (used in)investing activities was $13,000.Net cash provided by (used in)financing activities was $(30,000).On the statement of cash flows, the net cash provided by (used in)operating activities was:

Based solely on the information above, the net cash provided by (used in)investing activities on the statement of cash flows would be:

Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows.

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

The amount of depreciation added to net income equals the sum of the debits to the Accumulated Depreciation account.

The following transactions occurred last year at Jolly Corporation: Based solely on the above information, the net cash provided by (used in)financing activities for the year on the statement of cash flows would be:

Which of the following items would not be classified as an operating activity on the statement of cash flows?

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

The collection of a loan made to a supplier would be treated as an investing activity on a statement of cash flows.

Free cash flow is net cash provided by operating activities less capital expenditures.

In the statement of cash flows, collecting cash from customers is treated as a cash inflow in the financing activities section.

Tomlin 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?

Carriveau Corporation's most recent balance sheet appears below: Net income for the year was $172.Cash dividends were $35.The company did not sell or retire any property, plant, and equipment during the year.The net cash provided by (used in)operating activities for the year was:

Kaeser Corporation's most recent balance sheet appears below: The company's net income for the year was $52 and it did not sell or retire any property, plant, and equipment during the year.Cash dividends were $9.The net cash provided by (used in)investing activities for the year was:

Negative free cash flow suggests that the company generated enough cash flow from its operating activities to fund its capital expenditures and dividend payments.

The company's net cash provided by (used in)investing activities is:

Under the indirect method of determining the net cash provided by operating activities on the statement of cash flows, an increase in property, plant, and equipment is subtracted from net income.

The net cash provided by (used in)investing activities for the year was:

What is Stone's net cash provided by (used in)investing activities?

The free cash flow for the year was:

Last year Burch Corporation's cash account decreased by $6,000.Net cash provided by (used in)investing activities was $13,000.Net cash provided by (used in)financing activities was $(30,000).On the statement of cash flows, the net cash provided by (used in)operating activities was:

Based solely on the information above, the net cash provided by (used in)investing activities on the statement of cash flows would be:

Paying wages and salaries to employees is classified as a cash outflow in the operating activities section of the statement of cash flows.

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

The amount of depreciation added to net income equals the sum of the debits to the Accumulated Depreciation account.

The following transactions occurred last year at Jolly Corporation: Based solely on the above information, the net cash provided by (used in)financing activities for the year on the statement of cash flows would be:

Which of the following items would not be classified as an operating activity on the statement of cash flows?

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

Filters