Question 1

The cash flows from investing activities and cash flows from financing activities are the same in both the direct and indirect methods.

Accepted Answer

A) True 
 B)False

Question 2

Transactions that provide cash to the business to fund its activities are:

Accepted Answer

A) operating activities. 
B) financing activities. 
C) investing activities. 
D) outflows or uses of cash. 
A) operating activities. 
B) financing activities. 
C) investing activities. 
D) outflows or uses of cash.

Question 3

A decrease in accounts payable from $86,000 to $72,000 will be reported on the statement of cash flows as a:

Accepted Answer

A) $14,000 use of operating activity funds. 
B) $14,000 source of operating activity funds. 
C) $14,000 source of investing activity funds. 
D) $14,000 use of investing activity funds. 
A) $14,000 use of operating activity funds. 
B) $14,000 source of operating activity funds. 
C) $14,000 source of investing activity funds. 
D) $14,000 use of investing activity funds.

Question 4

The resale of treasury stock for cash is classified as a cash inflow from financing activities.

Accepted Answer

A) True 
 B)False

Question 5

Windwhirl Company reported net income of $150,000 and a $5,000 gain on the sale of equipment. The cash received from the sale of equipment was $27,000. Windwhirl issued additional shares of stock for $237,000, paid off a $196,000 bond issue recorded at par and paid $51,000 in dividends during the year. Calculate the net cash provided or (used)by financing activities.

Accepted Answer

A) ($5,000). 
B) $17,000. 
C) ($10,000). 
D) $162,000. 
A) ($5,000). 
B) $17,000. 
C) ($10,000). 
D) $162,000.

Question 6

For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method.
-decrease in Accounts Receivable

Accepted Answer

A) source 
B) use 
C) neither 
A) source 
B) use 
C) neither

Question 7

By analyzing past cash flows, financial statement users can identify the primary sources and uses of cash.

Accepted Answer

A) True 
 B)False

Question 8

The Natural Company's cash balance at December 31, 2019, was $150,000. The following information was reported on the company's statement of cash flows for 2020:
 
-
The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

Accepted Answer

A) $160,000 
B) $125,000 
C) $400,000 
D) $365,000 
A) $160,000 
B) $125,000 
C) $400,000 
D) $365,000

Question 9

The current assets and liabilities of the Lionel Corporation on December 31, 2019 and 2018, are listed below. Lionel's net income for 2019 was $75,000. Included in its expenses was depreciation of $17,000. Prepare a schedule of cash flows from operating activities for 2019.

Accepted Answer

LIONEL CORPORATION
S

Question 10

A list of sources and uses of cash are given below. Indicate on the line provided whether each is an (O)operating, (I)investing, (F)financing, or a significant (N)noncash financing and investing activity.
-pay interest expense

Accepted Answer

A) (O)operating 
B) (I)investing 
C) (F)financing, or a significant 
D) (N)noncash financing and investing activity. 
A) (O)operating 
B) (I)investing 
C) (F)financing, or a significant 
D) (N)noncash financing and investing activity.

Question 11

Cinders Inc, reported net income of $75,000 and a loss on the sale of plant assets of $17,000. The cash received from the sale of the plant assets was $52,000. Cinders also issued additional shares of stock for $25,000 and paid dividends of $6,200. Calculate the net cash provided or used by investing activities.

Accepted Answer

A) $35,000 net cash provided. 
B) $69,000 net cash used. 
C) $52,000 net cash provided 
D) $20,800 net cash used. 
A) $35,000 net cash provided. 
B) $69,000 net cash used. 
C) $52,000 net cash provided 
D) $20,800 net cash used.

Question 12

The method most often used by companies to prepare the statement of cash flows is the:

Accepted Answer

A) accrual method. 
B) direct method. 
C) indirect method. 
D) deferral method. 
A) accrual method. 
B) direct method. 
C) indirect method. 
D) deferral method.

Question 13

Which of the following would be reported as an investing activity on the statement of cash flows:

Accepted Answer

A) the issue of preferred stock. 
B) the purchase of equipment for cash. 
C) the issue of bonds and notes payable. 
D) the resale of treasury stock. 
A) the issue of preferred stock. 
B) the purchase of equipment for cash. 
C) the issue of bonds and notes payable. 
D) the resale of treasury stock.

Question 14

On the statement of cash flows, cash and----------consist of currency, bank accounts, and short-term, highly liquid investments.

Accepted Answer

The answer of On the statement of cash flows, cash...

Question 15

The payment of cash dividends to stockholders would be classified as an outflow of cash for a financing activity.

Accepted Answer

A) True 
 B)False

Question 16

The net cash provided by operating activities is affected by:

Accepted Answer

A) the issue of bonds payable for cash. 
B) a purchase of land for cash. 
C) a change in merchandise inventory. 
D) proceeds of cash investments by stockholders. 
A) the issue of bonds payable for cash. 
B) a purchase of land for cash. 
C) a change in merchandise inventory. 
D) proceeds of cash investments by stockholders.

Question 17

Purchases and sales of land, buildings, and equipment for cash are shown as------------- on the statement of cash flows.

Accepted Answer

investing

Question 18

Use the following information .
The Kerfuffle Company Income Statement
For the Year Ended June 30, 2019
   General and Administrative Expenses
       Liabilities and Stockholders' Equity
   Additional information:
Plant assets that originally cost $67,200 were sold for $56,400, resulting in a gain of $8,200. Dividends of $35,815 were declared and paid in 2019. There were no dividends declared in 2018.
-Using the information provided, prepare the cash flows from financing activities for The Kerfuffle Company.

Accepted Answer

Cash Flows from Financing Acti

Question 19

On the statement of cash flows, the------------ is reconciled with the net cash provided by operating activities.

Accepted Answer

The answer of On the statement of cash flows, the------------...

Question 20

The Other Income and Other Expense sections of an Income Statement are shown below. In preparing the Cash Flows from Operating Activities section of the statement of Cash Flows using the indirect method, indicate how each item would be handled. (Assume all line items involved cash.)
Other Income

Accepted Answer

The Gain on Sale of Vehicle would be ded

Exam 24: The Statement of Cash Flows

The cash flows from investing activities and cash flows from financing activities are the same in both the direct and indirect methods.

Transactions that provide cash to the business to fund its activities are:

A decrease in accounts payable from $86,000 to $72,000 will be reported on the statement of cash flows as a:

The resale of treasury stock for cash is classified as a cash inflow from financing activities.

For each of the following operating activities, select whether it is a source of cash, a use of cash, neither under the indirect method. -decrease in Accounts Receivable

By analyzing past cash flows, financial statement users can identify the primary sources and uses of cash.

The Natural Company's cash balance at December 31, 2019, was $150,000. The following information was reported on the company's statement of cash flows for 2020: - The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

The current assets and liabilities of the Lionel Corporation on December 31, 2019 and 2018, are listed below. Lionel's net income for 2019 was $75,000. Included in its expenses was depreciation of $17,000. Prepare a schedule of cash flows from operating activities for 2019.

A list of sources and uses of cash are given below. Indicate on the line provided whether each is an (O)operating, (I)investing, (F)financing, or a significant (N)noncash financing and investing activity. -pay interest expense

The method most often used by companies to prepare the statement of cash flows is the:

Which of the following would be reported as an investing activity on the statement of cash flows:

On the statement of cash flows, cash and----------consist of currency, bank accounts, and short-term, highly liquid investments.

The payment of cash dividends to stockholders would be classified as an outflow of cash for a financing activity.

The net cash provided by operating activities is affected by:

Purchases and sales of land, buildings, and equipment for cash are shown as------------- on the statement of cash flows.

On the statement of cash flows, the------------ is reconciled with the net cash provided by operating activities.

The Other Income and Other Expense sections of an Income Statement are shown below. In preparing the Cash Flows from Operating Activities section of the statement of Cash Flows using the indirect method, indicate how each item would be handled. (Assume all line items involved cash.) Other Income

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters