Question 1

A cash flow statement shows $29,000 from financing, ($9200)from investing and $23,000 from operations. The cash balance must have increased or decreased by

Accepted Answer

A) $52,000. 
B) $61,200. 
C) $42,800. 
D) $19,800. 
A) $52,000. 
B) $61,200. 
C) $42,800. 
D) $19,800.

Question 2

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash payments to suppliers be presented on the statement?

Accepted Answer

A) The adjustment will be for the increase or decrease in inventory during the period and will adjust net income in the operating activities section in the statement of cash flows. 
B) The adjustment will be for the increase or decrease in accounts payable during the period and will adjust net income in the operating activities section in the statement of cash flows. 
C) The adjustment will be for the increase or decrease in other accrued expenses during the period and will adjust net income in the operating activities section in the statement of cash flows. 
D) The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section in the statement of cash flows. 
A) The adjustment will be for the increase or decrease in inventory during the period and will adjust net income in the operating activities section in the statement of cash flows. 
B) The adjustment will be for the increase or decrease in accounts payable during the period and will adjust net income in the operating activities section in the statement of cash flows. 
C) The adjustment will be for the increase or decrease in other accrued expenses during the period and will adjust net income in the operating activities section in the statement of cash flows. 
D) The adjustment will be for the increase or decrease in accounts receivable during the period and will adjust net income in the operating activities section in the statement of cash flows.

Question 3

The following data relate to Austin Corporation for last year:   What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?

Accepted Answer

A) $212,000 
B) $114,000 
C) $165,000 
D) $103,000 
A) $212,000 
B) $114,000 
C) $165,000 
D) $103,000

Question 4

The ________ section in a statement of cash flows using the direct method of cash flows is not the same compared to the indirect method of cash flows on the statement of cash flows.

Accepted Answer

A) operating activities 
B) financing activities 
C) investing activities 
D) none of the above 
A) operating activities 
B) financing activities 
C) investing activities 
D) none of the above

Question 5

Activities that are included in the operating activities section of the statement of cash flows include which of the following activities?

Accepted Answer

A) Activities that obtain the cash needed to launch and sustain the business 
B) Activities that increase or decrease long-term assets 
C) Activities that create revenue or expenses in the entity's major line of business 
D) None of the above 
A) Activities that obtain the cash needed to launch and sustain the business 
B) Activities that increase or decrease long-term assets 
C) Activities that create revenue or expenses in the entity's major line of business 
D) None of the above

Question 6

The ________ section from the statement of cash flows would include the issuance of a stock dividend.

Accepted Answer

A) operating 
B) financing 
C) investing 
D) None of the above 
A) operating 
B) financing 
C) investing 
D) None of the above

Question 7

Smithson Corporation had the following selected balance sheet changes for the past year:   The company's operating income during the year was $37,000. What is the net cash provided by operating activities during last year on the statement of cash flows for Smithson Corporation (using the indirect method)?

Accepted Answer

A) $22,000 
B) $46,700 
C) $101,700 
D) $15,000 
A) $22,000 
B) $46,700 
C) $101,700 
D) $15,000

Question 8

When a company uses the direct method to present the statement of cash flows, depreciation expense must be added to net income to reconcile to net cash provided by operating activities.

Accepted Answer

A) True 
 B)False

Question 9

The balance sheet for Bostick Corporation follows:   Operating income during the period was $13,650, while cash dividends paid were $3,770. The total uses of cash for Bostick Corporation during the year was

Accepted Answer

A) $32,320. 
B) $13,800. 
C) $2,450. 
D) $54,970. 
A) $32,320. 
B) $13,800. 
C) $2,450. 
D) $54,970.

Question 10

The purchase of inventory would be considered a

Accepted Answer

A) cash outflow from investing activities. 
B) cash outflow from operating activities. 
C) cash outflow from financing activities. 
D) cash outflow from depreciation. 
A) cash outflow from investing activities. 
B) cash outflow from operating activities. 
C) cash outflow from financing activities. 
D) cash outflow from depreciation.

Question 11

The balance sheet for Blineberry Corporation follows:   Operating income during the period was $18,000, while cash dividends paid were $17,400. The total sources of cash at Blineberry Corporation during the year was

Accepted Answer

A) $40,950. 
B) $8,200. 
C) $48,050. 
D) $12,050. 
A) $40,950. 
B) $8,200. 
C) $48,050. 
D) $12,050.

Question 12

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

Accepted Answer

A) Financing section 
B) Investing section 
C) Operating section 
D) None of the above 
A) Financing section 
B) Investing section 
C) Operating section 
D) None of the above

Question 13

A company's inventory account increased $28,000 and its accounts payable account decreased $19,450 during the year. The accounts payable relates only to the acquisition of inventory. Sales were $790,500 and cost of goods sold was $535,700. What was the amount of payments to suppliers of inventory?

Accepted Answer

A) $555,150 
B) $583,150 
C) $544,250 
D) $837,950 
A) $555,150 
B) $583,150 
C) $544,250 
D) $837,950

Question 14

Which of the following statements is true about information in a statement of cash flows?

Accepted Answer

A) The statement of cash flows is one of the required financial statements for publicly-held companies. 
B) The statement of cash flows is prepared at the option of management. 
C) The statement of cash flows is combined with the income statement. 
D) The statement of cash flows is not completed when an income statement is prepared. 
A) The statement of cash flows is one of the required financial statements for publicly-held companies. 
B) The statement of cash flows is prepared at the option of management. 
C) The statement of cash flows is combined with the income statement. 
D) The statement of cash flows is not completed when an income statement is prepared.

Question 15

When a company uses the indirect method to present the statement of cash flows, an increase in a current liability must be subtracted from net income to reconcile to net cash provided by operating activities.

Accepted Answer

A) True 
 B)False

Question 16

A company uses the direct method to prepare the statement of cash flow computes the amount of cash it receives from customers as

Accepted Answer

A) cost of goods sold plus ending inventory minus beginning inventory. 
B) cost of goods sold minus ending inventory plus beginning inventory. 
C) sales revenue plus the decrease (or minus the increase)in accounts receivable. 
D) sales revenue minus the decrease (or plus the increase)in accounts receivable. 
A) cost of goods sold plus ending inventory minus beginning inventory. 
B) cost of goods sold minus ending inventory plus beginning inventory. 
C) sales revenue plus the decrease (or minus the increase)in accounts receivable. 
D) sales revenue minus the decrease (or plus the increase)in accounts receivable.

Question 17

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

Accepted Answer

A) investing 
B) operating 
C) financing 
D) None of the above 
A) investing 
B) operating 
C) financing 
D) None of the above

Question 18

Which of the following descriptions apply to cash equivalents?

Accepted Answer

A) Cash equivalents' values change because the interest rate changes. 
B) Cash equivalents are invested in fixed assets. 
C) Cash equivalents are highly liquid. 
D) Cash equivalents are long-term. 
A) Cash equivalents' values change because the interest rate changes. 
B) Cash equivalents are invested in fixed assets. 
C) Cash equivalents are highly liquid. 
D) Cash equivalents are long-term.

Question 19

A company pays cash dividends on preferred stock. If the company prepares the statement of cash flows using the indirect method or the direct method, where would this transaction appear?

Accepted Answer

A) The payment of cash dividends would be presented in the financing activities section as a cash payment under both methods. 
B) The payment of cash dividends would be presented in the investing activities section as a cash payment under both methods. 
C) The payment of cash dividends would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash payment under the direct method. 
D) The payment of cash dividends would be presented in the non-cash investing and financing activities section under both methods. 
A) The payment of cash dividends would be presented in the financing activities section as a cash payment under both methods. 
B) The payment of cash dividends would be presented in the investing activities section as a cash payment under both methods. 
C) The payment of cash dividends would be presented in the operating activities section as a reduction in net income under the indirect method and as a cash payment under the direct method. 
D) The payment of cash dividends would be presented in the non-cash investing and financing activities section under both methods.

Question 20

Which of the following is the primary source of cash over the life of a business?

Accepted Answer

A) Financing activities 
B) Operating activities 
C) Investing activities 
D) None of the above 
A) Financing activities 
B) Operating activities 
C) Investing activities 
D) None of the above

A cash flow statement shows $29,000 from financing, ($9200)from investing and $23,000 from operations. The cash balance must have increased or decreased by

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash payments to suppliers be presented on the statement?

The following data relate to Austin Corporation for last year: What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?

The ________ section in a statement of cash flows using the direct method of cash flows is not the same compared to the indirect method of cash flows on the statement of cash flows.

Activities that are included in the operating activities section of the statement of cash flows include which of the following activities?

The ________ section from the statement of cash flows would include the issuance of a stock dividend.

When a company uses the direct method to present the statement of cash flows, depreciation expense must be added to net income to reconcile to net cash provided by operating activities.

The balance sheet for Bostick Corporation follows: Operating income during the period was $13,650, while cash dividends paid were $3,770. The total uses of cash for Bostick Corporation during the year was

The purchase of inventory would be considered a

The balance sheet for Blineberry Corporation follows: Operating income during the period was $18,000, while cash dividends paid were $17,400. The total sources of cash at Blineberry Corporation during the year was

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

A company's inventory account increased $28,000 and its accounts payable account decreased $19,450 during the year. The accounts payable relates only to the acquisition of inventory. Sales were $790,500 and cost of goods sold was $535,700. What was the amount of payments to suppliers of inventory?

Which of the following statements is true about information in a statement of cash flows?

When a company uses the indirect method to present the statement of cash flows, an increase in a current liability must be subtracted from net income to reconcile to net cash provided by operating activities.

A company uses the direct method to prepare the statement of cash flow computes the amount of cash it receives from customers as

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

Which of the following descriptions apply to cash equivalents?

A company pays cash dividends on preferred stock. If the company prepares the statement of cash flows using the indirect method or the direct method, where would this transaction appear?

Which of the following is the primary source of cash over the life of a business?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Financial Statement Analysis

Sustainability

Filters

Exam 13: Statement of Cash Flows

A cash flow statement shows $29,000 from financing, ($9200)from investing and $23,000 from operations. The cash balance must have increased or decreased by

If a company uses the indirect method to prepare the statement of cash flows, how will the adjustment to reflect the amount of cash payments to suppliers be presented on the statement?

The following data relate to Austin Corporation for last year: What is the net cash provided by operating activities for last year on the statement of cash flows for Austin Corporation?

The ________ section in a statement of cash flows using the direct method of cash flows is not the same compared to the indirect method of cash flows on the statement of cash flows.

Activities that are included in the operating activities section of the statement of cash flows include which of the following activities?

The ________ section from the statement of cash flows would include the issuance of a stock dividend.

When a company uses the direct method to present the statement of cash flows, depreciation expense must be added to net income to reconcile to net cash provided by operating activities.

The balance sheet for Bostick Corporation follows: Operating income during the period was $13,650, while cash dividends paid were $3,770. The total uses of cash for Bostick Corporation during the year was

The purchase of inventory would be considered a

The balance sheet for Blineberry Corporation follows: Operating income during the period was $18,000, while cash dividends paid were $17,400. The total sources of cash at Blineberry Corporation during the year was

On the statement of cash flows, which of the following sections includes the issuance of stock and the payment of dividends?

A company's inventory account increased $28,000 and its accounts payable account decreased $19,450 during the year. The accounts payable relates only to the acquisition of inventory. Sales were $790,500 and cost of goods sold was $535,700. What was the amount of payments to suppliers of inventory?

Which of the following statements is true about information in a statement of cash flows?

When a company uses the indirect method to present the statement of cash flows, an increase in a current liability must be subtracted from net income to reconcile to net cash provided by operating activities.

A company uses the direct method to prepare the statement of cash flow computes the amount of cash it receives from customers as

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

Which of the following descriptions apply to cash equivalents?

A company pays cash dividends on preferred stock. If the company prepares the statement of cash flows using the indirect method or the direct method, where would this transaction appear?

Which of the following is the primary source of cash over the life of a business?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Financial Statement Analysis

Sustainability

Filters