Exam 13: Statement of Cash Flows

A company uses the direct method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts payable?

List three ways that owners and investors use the statement of cash flows.

A company uses the indirect method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to salary payable?

A company uses the indirect method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts receivable?

Under the direct method of cash flow,which of the following is not included in the statement of cash flows?

A company uses the direct method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory Which of the following is correct about accounts receivable in the operating activities category of the cash flow statement?

All of the following are cash outflows from an operating activity except

A company uses the indirect method to prepare the statement of cash flows.It presents the following data on its financial statements: *Relates solely to the acquisition of inventory What will appear in the operating activities section related to accounts receivable?

Which of the following would not appear on a statement of cash flows prepared using the direct method?

A company sold equipment with a book value of $10,000 at a gain of $2,500.How much can be reported in the investing activities section of the statement of cash flows as cash received upon the sale of the equipment?

A company sells treasury stock for an amount less than its acquisition cost.If the company prepares the statement of cash flows using the indirect method or the direct method,where would this transaction appear?

The ________ section from the statement of cash flows includes activities that create revenue,expenses,gains and losses.

Identify and describe the three sections of the statement of cash flows.

The operating activities section of the statement of cash flows is the most important section of the statement of cash flows.

The correct order of the sections on a statement of cash flows is

On the statement of cash flows,which of the following items would be reported as an operating activity?

The income statement and a partial balance sheet for Vespoint Company is presented below.Prepare the operating activities section of the statement of cash flows using the indirect method.

The managerial accountant at the Health Club is required to determine the amount of cash purchases inventory.The managerial accountant reported a beginning inventory balance of $900,000 and $8,400,000 in cost of goods sold during the year.The ending inventory balance during the year was $850,000.Calculate the amount of cash purchases of inventory during the year.Next,discuss what occurs when there is an increase in the inventory account.What occurs when there is a decrease in the inventory account.

A company uses the indirect method to prepare the statement of cash flows.It sold a piece of equipment at a gain of $3,600.The equipment was purchased several years ago for $70,500 and had accumulated depreciation of $52,900.What is reported under the operating activities section on the statement of cash flows?

A payment of interest on a loan would be considered a