Question 1

On its statement of cash flows, what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?

Accepted Answer

A) $345,000 
B) $366,000 
C) $379,000 
D) $373,000 
A) $345,000 
B) $366,000 
C) $379,000 
D) $373,000 C

Question 2

The net cash provided by (used in)investing activities would be:

Accepted Answer

A) $15,000 
B) $(10,000) 
C) $(8,000) 
D) $5,000 
A) $15,000 
B) $(10,000) 
C) $(8,000) 
D) $5,000 D

Question 3

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

Accepted Answer

A) $39,000 
B) $69,000 
C) $9,000 
D) $25,000 
A) $39,000 
B) $69,000 
C) $9,000 
D) $25,000 C

Question 4

Kuma, Inc.had cost of goods sold of $106,000 for the just completed year.Shown below are the beginning and ending balances of various Kuma accounts:   Kuma prepares its statement of cash flows using the direct method.On its statement of cash flows, what amount should Kuma show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?

Accepted Answer

A) $100,000 
B) $96,000 
C) $102,000 
D) $116,000 
A) $100,000 
B) $96,000 
C) $102,000 
D) $116,000

Question 5

Wister Corporation had sales of $462,000 for the just completed year.Shown below are the beginning and ending balances of various Wister accounts:   Wister prepares its statement of cash flows using the direct method.On its statement of cash flows, what amount should Wister show for its sales adjusted to a cash basis (i.e., cash received from sales)?

Accepted Answer

A) $488,000 
B) $436,000 
C) $462,000 
D) $445,000 
A) $488,000 
B) $436,000 
C) $462,000 
D) $445,000

Question 6

The ending balance of accounts receivable was $69,000.Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $354,000.Sales reported on the income statement were $378,000.Based on this information, the beginning balance in accounts receivable was:

Accepted Answer

A) $93,000 
B) $24,000 
C) $94,000 
D) $45,000 
A) $93,000 
B) $24,000 
C) $94,000 
D) $45,000

Question 7

Maloney Corporation's balance sheet and income statement appear below:     Cash dividends were $42.The company did not dispose of any property, plant, and equipment during the year.

Required:
Prepare the operating activities section of the statement of cash flows using the direct method.

Accepted Answer

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

Question 8

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

Accepted Answer

A) $(127) 
B) $(138) 
C) $138 
D) $127 
A) $(127) 
B) $(138) 
C) $138 
D) $127

Question 9

Carr Corporation's comparative balance sheet and income statement for last year appear below:     The company declared and paid $47,000 in cash dividends during the year.It did not dispose of any property, plant, and equipment during the year.

Required:
Construct in good form the operating activities section of the company's statement of cash flows for the year using the direct method.

Accepted Answer

The answer of Carr Corporation's comparative balance sheet and income...

Question 10

Digby Corporation's balance sheet and income statement appear below:     Cash dividends were $29.The company did not dispose of any property, plant, and equipment during the year.

Required:
Prepare the operating activities section of the statement of cash flows in good form using the direct method.

Accepted Answer

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

Question 11

Carson Corporation's comparative balance sheet and income statement for last year appear below:     Carson did not dispose of any property, plant, and equipment during the year.It constructs its statement of cash flows using the direct method.

Required:
Using the direct method, prepare in good form the operating activities section of the statement of cash flows.

Accepted Answer

The answer of Carson Corporation's comparative balance sheet and income...

Question 12

During the year the balance in the Prepaid Expenses account increased by $6,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

Accepted Answer

A) subtract the $6,000 from the selling and administrative expenses reported on the income statement. 
B) add the $6,000 to the selling and administrative expenses reported on the income statement. 
C) subtract the $6,000 from the cost of goods sold reported on the income statement. 
D) add the $6,000 to the cost of goods sold reported on the income statement. 
A) subtract the $6,000 from the selling and administrative expenses reported on the income statement. 
B) add the $6,000 to the selling and administrative expenses reported on the income statement. 
C) subtract the $6,000 from the cost of goods sold reported on the income statement. 
D) add the $6,000 to the cost of goods sold reported on the income statement.

Question 13

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, one step in adjusting selling and administrative expenses from an accrual to a cash basis is to subtract any increase in prepaid expenses.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) $187 
B) $231 
C) $257 
D) $201 
A) $187 
B) $231 
C) $257 
D) $201

Question 15

On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be:

Accepted Answer

A) $304,000 
B) $384,000 
C) $310,000 
D) $236,000 
A) $304,000 
B) $384,000 
C) $310,000 
D) $236,000

Question 16

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

Accepted Answer

A) $19 
B) $(118) 
C) $(137) 
D) $118 
A) $19 
B) $(118) 
C) $(137) 
D) $118

Question 17

Evita Corporation prepares its statement of cash flows using the indirect method.Evita's statement showed "Net cash provided by (used in)operating activities" of $46,000.Under the direct method, this number would have been:

Accepted Answer

A) $0. 
B) $46,000. 
C) greater than $46,000. 
D) less than $46,000 but greater than $0. 
A) $0. 
B) $46,000. 
C) greater than $46,000. 
D) less than $46,000 but greater than $0.

Question 18

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.

Accepted Answer

A) True 
 B)False

Question 19

Under the direct method, cost of goods sold adjusted to a cash basis would be:

Accepted Answer

A) $105,000 
B) $125,000 
C) $175,000 
D) $155,000 
A) $105,000 
B) $125,000 
C) $175,000 
D) $155,000

Question 20

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

Accepted Answer

A) $(42) 
B) $3 
C) $11 
D) $(28) 
A) $(42) 
B) $3 
C) $11 
D) $(28)

On its statement of cash flows, what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?

The net cash provided by (used in)investing activities would be:

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

The ending balance of accounts receivable was $69,000.Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $354,000.Sales reported on the income statement were $378,000.Based on this information, the beginning balance in accounts receivable was:

Maloney Corporation's balance sheet and income statement appear below: Cash dividends were $42.The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method.

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

Digby Corporation's balance sheet and income statement appear below: Cash dividends were $29.The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows in good form using the direct method.

During the year the balance in the Prepaid Expenses account increased by $6,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, one step in adjusting selling and administrative expenses from an accrual to a cash basis is to subtract any increase in prepaid expenses.

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

On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be:

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

Evita Corporation prepares its statement of cash flows using the indirect method.Evita's statement showed "Net cash provided by (used in)operating activities" of $46,000.Under the direct method, this number would have been:

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.

Under the direct method, cost of goods sold adjusted to a cash basis would be:

The net cash provided by (used in)financing activities for the 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

Statement of Cash Flows

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

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Exam 21: A Statement of Cash Flows

On its statement of cash flows, what amount should Howard show for its cost of goods sold adjusted to a cash basis (i.e., cash paid to suppliers)?

The net cash provided by (used in)investing activities would be:

On the statement of cash flows, the income tax expense adjusted to a cash basis would be:

The ending balance of accounts receivable was $69,000.Sales, adjusted to a cash basis using the direct method on the statement of cash flows, were $354,000.Sales reported on the income statement were $378,000.Based on this information, the beginning balance in accounts receivable was:

Maloney Corporation's balance sheet and income statement appear below: Cash dividends were $42.The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows using the direct method.

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

Digby Corporation's balance sheet and income statement appear below: Cash dividends were $29.The company did not dispose of any property, plant, and equipment during the year. Required: Prepare the operating activities section of the statement of cash flows in good form using the direct method.

During the year the balance in the Prepaid Expenses account increased by $6,000.In order to adjust the company's net income to a cash basis using the direct method on the statement of cash flows, it would be necessary to:

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, one step in adjusting selling and administrative expenses from an accrual to a cash basis is to subtract any increase in prepaid expenses.

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

On the statement of cash flows, the selling and administrative expense adjusted to a cash basis would be:

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

Evita Corporation prepares its statement of cash flows using the indirect method.Evita's statement showed "Net cash provided by (used in)operating activities" of $46,000.Under the direct method, this number would have been:

Under the direct method of determining the net cash provided by (used in)operating activities on the statement of cash flows, an increase in accounts receivable would be added to sales revenue to convert revenue to a cash basis.

Under the direct method, cost of goods sold adjusted to a cash basis would be:

The net cash provided by (used in)financing activities for the 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

Statement of Cash Flows

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

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