Exam 11: The Statement of Cash Flows

Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What is the amount paid to suppliers for purchases of merchandise during 2014?

A(n)____________________ occurs when the cash received from selling an item of property, plant, and equipment is greater than the book value of the asset sold. It is also shown in the operating activities section of the statement of cash flows prepared using the indirect method.

If the balance of prepaid insurance was the same on January 1, 2014, and December 31, 2014, then the insurance expense must have been ____________________ the cash payments made for insurance during the year.

Which of the following is not an investing activity?

Which of the following operating activities results in a cash outflow?

The purchase of inventory is an important ____________________ activity for a retailer.

Which of the following is not an operating activity?

Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What is the amount paid for operating expenses during 2014?

The statement of cash flows helps users understand the reasons for the differences between net income and related cash receipts and payments.

A company reported the following information: How much cash was paid for insurance during 2014?

When using the direct method to determine operating cash flows, how is the payment of a cash dividend shown on the Statement of Cash Flows?

When using the direct method to determine operating cash flows, how is the issuance of stock for cash shown on the Statement of Cash Flows?

Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What amount was paid to retire bonds payable during 2014?

The following items were reported by Morris Plumbing Company: What amount would be reported in the operating activities section of the statement of cash flows for Collections from Customers under the direct method, assuming that all sales are on credit?

Which of the following transactions is not a significant noncash investing and financing activity?

Which of the following statements regarding the statement of cash flows is true?

The following items were obtained from the financial records: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Which of the following statements is false?

A used car dealer reported the following information: Assuming there was no change in inventory during the period, how much cash was paid for merchandise purchases during 2014?

Selected information from the company's financial records is presented below: During 2014, the company sold equipment with a cost of $50,000 and accumulated depreciation of $30,000. A gain of $10,000 was recognized on the sale of the equipment. This was the only equipment sale during the year. -Refer to Metalcrafts, Inc. What amount would be reported as the cash proceeds from the sale of equipment?