Question 1

On the statement of cash flows, the cash flows from operating activities section include:

Accepted Answer

A) receipts from the issuance of capital stock. 
B) receipts from the sale of investments. 
C) payments for the acquisition of investments. 
D) depreciation expense on fixed assets. 
A) receipts from the issuance of capital stock. 
B) receipts from the sale of investments. 
C) payments for the acquisition of investments. 
D) depreciation expense on fixed assets.

Question 2

The statement of cash flows assumes that the----------- basis of accounting is used when recording transactions and preparing the balance sheet and income statement.

Accepted Answer

The answer of The statement of cash flows assumes that...

Question 3

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity.
-dividends paid

Accepted Answer

A) operating 
B) investing 
C) financing activity. 
A) operating 
B) investing 
C) financing activity.

Question 4

Match between columns
                        Premises:  purchase of land
 repayment of bond indebtedness
 sale of merchandise
 pay salaries and wages
 pay interest expense
 sale of office equipment
 dividends paid
 resale of Treasury Stock
 borrowing through a note payable
 dividend income

Accepted Answer

The Answer of operating activity. and Investing activity. and financing is...

Question 5

For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method.
-increase in Inventory

Accepted Answer

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

Question 6

The payment of bonds at maturity would be treated as a cash--------- in the----------- section of the statement of cash flows.

Accepted Answer

outflow; f

Question 7

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 Operating Activities of:

Accepted Answer

A) $191,000. 
B) $346,000. 
C) $214,000. 
D) $407,000. 
A) $191,000. 
B) $346,000. 
C) $214,000. 
D) $407,000.

Question 8

The purchase or resale of treasury stock is reported in which section of the statement of cash flows?

Accepted Answer

A) Disclosures 
B) Operating Activities 
C) Investing Activities 
D) Financing Activities 
A) Disclosures 
B) Operating Activities 
C) Investing Activities 
D) Financing Activities

Question 9

The following transactions occurred at the Lionel Corporation in 2019. Use this information to prepare Lionel's schedule of cash flows from investing activities.
A)The company sold a used truck for $6,500 in cash. The original cost of the truck was $22,000. Depreciation of $16,000 had been deducted.
B)The company purchased some new equipment for $36,000.

Accepted Answer

LIONEL CORPORATION
S

Question 10

Explain the differences between the direct and the indirect methods of preparing the operating activities section of the statement of cash flows.

Accepted Answer

Direct Method
All revenue and expenses t

Question 11

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 Investing Activitie totaling:

Accepted Answer

A) ($355,000) 
B) $477,000 
C) ($332,000) 
D) ($416,000) 
A) ($355,000) 
B) $477,000 
C) ($332,000) 
D) ($416,000)

Question 12

When the----------- method of preparing the statement of cash flows is used, the interest and income taxes paid during the period are disclosed in notes accompanying the statement.

Accepted Answer

The answer of When the----------- method of preparing the statement...

Question 13

Why is the Statement of Cash Flows important?

Accepted Answer

The information provided in the statemen

Question 14

Operating activities include all except:

Accepted Answer

A) a decrease in accounts receivable. 
B) an increase in wages payable. 
C) the payment of dividends to shareholders. 
D) a decrease in accounts payable. 
A) a decrease in accounts receivable. 
B) an increase in wages payable. 
C) the payment of dividends to shareholders. 
D) a decrease in accounts payable.

Question 15

For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method.
-increase in Accumulated Depreciation

Accepted Answer

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

Question 16

Current assets and current liabilities are often referred to as operating assets and liabilities.

Accepted Answer

A) True 
 B)False

Question 17

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.
-purchased land in exchange for a note payable

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 18

Cash paid to purchase long-term investments would be reported in the statement of cash flows as:

Accepted Answer

A) a decrease in the Operating section. 
B) a decrease in the Investing section. 
C) an increase in the Financing section. 
D) an increase in the Operating section. 
A) a decrease in the Operating section. 
B) a decrease in the Investing section. 
C) an increase in the Financing section. 
D) an increase in the Operating section.

Question 19

In computing the cash flows from operating activities section, a loss from the sale of long-term assets must be deducted from net income.

Accepted Answer

A) True 
 B)False

Question 20

The schedule of----------- supplements the income statement, showing selling and administrative expenses in greater detail.

Accepted Answer

The answer of The schedule of----------- supplements the income statement,...

Exam 24: The Statement of Cash Flows

On the statement of cash flows, the cash flows from operating activities section include:

The statement of cash flows assumes that the----------- basis of accounting is used when recording transactions and preparing the balance sheet and income statement.

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity. -dividends paid

For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method. -increase in Inventory

The payment of bonds at maturity would be treated as a cash--------- in the----------- section of the statement of cash flows.

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 Operating Activities of:

The purchase or resale of treasury stock is reported in which section of the statement of cash flows?

Explain the differences between the direct and the indirect methods of preparing the operating activities section of the statement of cash flows.

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 Investing Activitie totaling:

When the----------- method of preparing the statement of cash flows is used, the interest and income taxes paid during the period are disclosed in notes accompanying the statement.

Why is the Statement of Cash Flows important?

Operating activities include all except:

For each of the following operating activities, select whether it is a source of cash, a use of cash or neither under the indirect method. -increase in Accumulated Depreciation

Current assets and current liabilities are often referred to as operating assets and liabilities.

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. -purchased land in exchange for a note payable

Cash paid to purchase long-term investments would be reported in the statement of cash flows as:

In computing the cash flows from operating activities section, a loss from the sale of long-term assets must be deducted from net income.

The schedule of----------- supplements the income statement, showing selling and administrative expenses in greater detail.

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

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