Question 1

Which of the following is the correct sequence for the major components of the Statement of Cash Flows?

Accepted Answer

A) Operating,Investing,Financing. 
B) Investing,Operating,Financing. 
C) Operating,Financing,Investing. 
D) Financing,Investing,Operating. 
A) Operating,Investing,Financing. 
B) Investing,Operating,Financing. 
C) Operating,Financing,Investing. 
D) Financing,Investing,Operating.

Question 2

Describe where on the Statement of Cash Flows one would find a noncash purchase of equipment.

Accepted Answer

Noncash purchases of equipment

Question 3

What effect does the following journal entry have on the amount of cash generated by operating activities?

Accepted Answer

A) Decreases it 
B) Increases it 
C) Has no effect 
D) Cannot be determined from the information given 
A) Decreases it 
B) Increases it 
C) Has no effect 
D) Cannot be determined from the information given

Question 4

A mortgage issued in exchange for a building would be reported on the statement of cash flows in the

Accepted Answer

A) financing activity section. 
B) investing activity section. 
C) operating activity section. 
D) noncash financing and investing section. 
A) financing activity section. 
B) investing activity section. 
C) operating activity section. 
D) noncash financing and investing section.

Question 5

When using the indirect method to prepare the statement of cash flows,a decrease in current liabilities is:

Accepted Answer

A) subtracted from current liabilities in the cash flows from financing activities section. 
B) subtracted from current assets in the cash flows from financing activities section. 
C) added to net income in the cash flows from operating activities section. 
D) added to inventory purchases in the cash flows from investing activities section. 
A) subtracted from current liabilities in the cash flows from financing activities section. 
B) subtracted from current assets in the cash flows from financing activities section. 
C) added to net income in the cash flows from operating activities section. 
D) added to inventory purchases in the cash flows from investing activities section.

Question 6

The following information is available for O'Hara Company for 2016.O'Hara uses the direct method to prepare its statement of cash flows.
a)What amount of cash was paid for the purchase of merchandise?
b)How will the amount computed in a)be shown on the Statement of Cash Flows?

Accepted Answer

a)$900,000 end.equip.- $850,000 beg.equi

Question 7

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

Accepted Answer

A) cash flows from operating activities is presented. 
B) cash flows from investing activities is presented. 
C) cash flows from financing activities is presented. 
D) the schedule of noncash items is presented. 
A) cash flows from operating activities is presented. 
B) cash flows from investing activities is presented. 
C) cash flows from financing activities is presented. 
D) the schedule of noncash items is presented.

Question 8

Rapid growth of a company can cause it to be short of cash.

Accepted Answer

A) True 
 B)False

Question 9

Use the following to answer questions
Erie Company reports the following comparative balance sheets and income statement information.
    
-The amount of cash revenue received from customers during 2016 was:

Accepted Answer

A) $296,000. 
B) $264,000. 
C) $280,000. 
D) $248,000. 
A) $296,000. 
B) $264,000. 
C) $280,000. 
D) $248,000.

Which of the following is the correct sequence for the major components of the Statement of Cash Flows?

Describe where on the Statement of Cash Flows one would find a noncash purchase of equipment.

What effect does the following journal entry have on the amount of cash generated by operating activities?

A mortgage issued in exchange for a building would be reported on the statement of cash flows in the

When using the indirect method to prepare the statement of cash flows,a decrease in current liabilities is:

The following information is available for O'Hara Company for 2016.O'Hara uses the direct method to prepare its statement of cash flows. a)What amount of cash was paid for the purchase of merchandise? b)How will the amount computed in a)be shown on the Statement of Cash Flows?

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

Rapid growth of a company can cause it to be short of cash.

Use the following to answer questions Erie Company reports the following comparative balance sheets and income statement information. -The amount of cash revenue received from customers during 2016 was:

An Introduction to Accounting

Understanding the Accounting Cycle

The Double-Entry Accounting System

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships,partnerships,and Corporations

Financial Statement Analysis

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Exam 12: Statement of Cash Flows

Which of the following is the correct sequence for the major components of the Statement of Cash Flows?

Describe where on the Statement of Cash Flows one would find a noncash purchase of equipment.

What effect does the following journal entry have on the amount of cash generated by operating activities?

A mortgage issued in exchange for a building would be reported on the statement of cash flows in the

When using the indirect method to prepare the statement of cash flows,a decrease in current liabilities is:

The following information is available for O'Hara Company for 2016.O'Hara uses the direct method to prepare its statement of cash flows. a)What amount of cash was paid for the purchase of merchandise? b)How will the amount computed in a)be shown on the Statement of Cash Flows?

The only difference between the direct and indirect methods of preparing the statement of cash flows is the manner in which the

Rapid growth of a company can cause it to be short of cash.

Use the following to answer questions Erie Company reports the following comparative balance sheets and income statement information. -The amount of cash revenue received from customers during 2016 was:

An Introduction to Accounting

Understanding the Accounting Cycle

The Double-Entry Accounting System

Accounting for Merchandising Businesses

Accounting for Inventories

Internal Control and Accounting for Cash

Accounting for Receivables

Accounting for Long-Term Operational Assets

Accounting for Current Liabilities and Payroll

Accounting for Long-Term Debt

Proprietorships,partnerships,and Corporations

Financial Statement Analysis

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