Question 1

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

Accepted Answer

A) $48,000 
B) $18,000 
C) $40,000 
D) $52,000 
A) $48,000 
B) $18,000 
C) $40,000 
D) $52,000

Question 2

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

Accepted Answer

A) $30,000 
B) $(30,000) 
C) $(40,000) 
D) $40,000 
A) $30,000 
B) $(30,000) 
C) $(40,000) 
D) $40,000

Question 3

Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 4

In a statement of cash flows, issuing bonds payable affects the:

Accepted Answer

A) operating activities section. 
B) financing activities section. 
C) investing activities section. 
D) free cash flow activities section. 
A) operating activities section. 
B) financing activities section. 
C) investing activities section. 
D) free cash flow activities section.

Question 5

Negative free cash flow does not automatically signal poor performance.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income 
B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income 
C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income 
D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income 
A) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be subtracted from net income 
B) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be added to net income 
C) The change in Accounts Payable will be subtracted from net income; The change in Accrued Liabilities will be subtracted from net income 
D) The change in Accounts Payable will be added to net income; The change in Accrued Liabilities will be added to net income

Question 7

Klicker Corporation's most recent balance sheet appears below:   The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year.Cash dividends were $40.The net cash provided by (used in)financing activities for the year was:

Accepted Answer

A) ($49) 
B) ($40) 
C) $4 
D) ($13) 
A) ($49) 
B) ($40) 
C) $4 
D) ($13)

Question 8

Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7.The company's free cash flow was:

Accepted Answer

A) $(19) 
B) $77 
C) $3 
D) $15 
A) $(19) 
B) $77 
C) $3 
D) $15

Question 9

Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Burns Corporation's net income last year was $91,000.Changes in the company's balance sheet accounts for the year appear below:   The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year.The company declared and paid a cash dividend of $4,000.

Required:
a.Construct in good form the operating activities section of the company's statement of cash flows for the year.(Use the indirect method.)
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: @#IMG-DLM&_TB262

Question 12

Autry Corporation's balance sheet and income statement appear below:     Cash dividends were $40.The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4.The net cash provided by (used in)investing activities for the year was:

Accepted Answer

A) $19 
B) $140 
C) ($159) 
D) ($140) 
A) $19 
B) $140 
C) ($159) 
D) ($140)

Question 13

In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:

Accepted Answer

A) an operating activity. 
B) a financing activity. 
C) an investing activity. 
D) a lending activity. 
A) an operating activity. 
B) a financing activity. 
C) an investing activity. 
D) a lending activity.

Question 14

Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

Accepted Answer

A) True 
 B)False

Question 15

The free cash flow for the year was:

Accepted Answer

A) $123,000 
B) $87,000 
C) $142,000 
D) $269,000 
A) $123,000 
B) $87,000 
C) $142,000 
D) $269,000

Question 16

Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) $(20,000) 
B) $(15,000) 
C) $5,000 
D) $65,000 
A) $(20,000) 
B) $(15,000) 
C) $5,000 
D) $65,000

Question 18

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

Accepted Answer

A) $100,000 
B) $(100,000) 
C) $(400,000) 
D) $400,000 
A) $100,000 
B) $(100,000) 
C) $(400,000) 
D) $400,000

Question 19

The ending and beginning balances of Farmer Corporation's balance sheet accounts for the most recent year are listed below:   The company's net income (loss)for the year was $0 and its cash dividends were $4,000.It did not dispose of any property, plant, and equipment, retire any bonds payable, or repurchase any of its own common stock during the year.

Required:
Compute the change in each balance sheet account in the below table.Indicate whether the change in each balance will be recorded in the operating, investing, or financing activities section of the statement of cash flows.For items recorded in the operating activities section, also indicate whether the change will be added to or subtracted from net income.For all other items, indicate whether the change will be added as a cash inflow or subtracted as a cash outflow.The first entry has been filled in as an example.

Accepted Answer

The answer of The ending and beginning balances of Farmer...

Question 20

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

Accepted Answer

A) $(46,000) 
B) $46,000 
C) $(10,000) 
D) $10,000 
A) $(46,000) 
B) $46,000 
C) $(10,000) 
D) $10,000

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

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

Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.

In a statement of cash flows, issuing bonds payable affects the:

Negative free cash flow does not automatically signal poor performance.

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

Klicker Corporation's most recent balance sheet appears below: The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year.Cash dividends were $40.The net cash provided by (used in)financing activities for the year was:

Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7.The company's free cash flow was:

Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows.

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

Autry Corporation's balance sheet and income statement appear below: Cash dividends were $40.The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4.The net cash provided by (used in)investing activities for the year was:

In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:

Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

The free cash flow for the year was:

Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.

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

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

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

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

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

Cash payments to repay the principal amount of debt are reported as a cash outflow in the investing activities section of the statement of cash flows.

In a statement of cash flows, issuing bonds payable affects the:

Negative free cash flow does not automatically signal poor performance.

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

Klicker Corporation's most recent balance sheet appears below: The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year.Cash dividends were $40.The net cash provided by (used in)financing activities for the year was:

Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures were $24; and its cash dividends were $7.The company's free cash flow was:

Paying taxes to governmental bodies is considered a cash outflow in the operating activities section on the statement of cash flows.

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

Autry Corporation's balance sheet and income statement appear below: Cash dividends were $40.The company sold equipment for $19 that was originally purchased for $6 and that had accumulated depreciation of $4.The net cash provided by (used in)investing activities for the year was:

In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:

Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

The free cash flow for the year was:

Cash equivalents on the statement of cash flows consist of any investment that can be converted into cash within one year.

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

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

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

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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