Question 1

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

Accepted Answer

The answer of For each of the following separate cases,use...

Question 2

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the direct method.

Accepted Answer

The direct method for reporting cash flo

Question 3

A company's Inventory balance at the end of the year was $188,000 and $200,000 at the beginning of the year.Its Accounts Payable balance at the end of the year was $84,000 and $80,000 at the beginning of the year,and its cost of goods sold for the year was $720,000.The company's total amount of cash payments for merchandise during the year equals:

Accepted Answer

A) $704,000. 
B) $712,000. 
C) $720,000. 
D) $728,000. 
E) $736,000. 
A) $704,000. 
B) $712,000. 
C) $720,000. 
D) $728,000. 
E) $736,000.

Question 4

The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

Accepted Answer

A) True 
 B)False

Question 5

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

Accepted Answer

A) $50,000. 
B) $5,000. 
C) $45,000. 
D) Zero.This is an operating activity. 
E) Zero.This is a financing activity. 
A) $50,000. 
B) $5,000. 
C) $45,000. 
D) Zero.This is an operating activity. 
E) Zero.This is a financing activity.

Question 6

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash financing and investing activities. 
E) Reconciliation of cash balance. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash financing and investing activities. 
E) Reconciliation of cash balance.

Question 7

The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available:  What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?

Accepted Answer

A) $42,000. 
B) $43,000. 
C) $63,000. 
D) $1,000. 
E) $41,000. 
A) $42,000. 
B) $43,000. 
C) $63,000. 
D) $1,000. 
E) $41,000.

Question 8

Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed,and distributing cash to owners.

Accepted Answer

A) Financing activities 
B) Investing activities 
C) Statement of cash flows 
D) Indirect method 
E) Direct method
F)Operating activities 
A) Financing activities 
B) Investing activities 
C) Statement of cash flows 
D) Indirect method 
E) Direct method
F)Operating activities

Question 9

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ________ section.

Accepted Answer

operating

Question 10

The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

Accepted Answer

A) True 
 B)False

Question 11

Explain the purpose and format of the statement of cash flows.Also describe its relevance to decision makers.

Accepted Answer

The purpose of the statement of cash flo

Question 12

The indirect method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

Accepted Answer

A) True 
 B)False

Question 13

In preparing a company's statement of cash flows using the indirect method,the following information is available:   
-Net cash provided by operating activities was:

Accepted Answer

A) $120,000. 
B) $60,000. 
C) $70,000. 
D) $80,000. 
E) $130,000. 
A) $120,000. 
B) $60,000. 
C) $70,000. 
D) $80,000. 
E) $130,000.

Question 14

When preparing the operating activities section of the statement of cash flows using the indirect method,decreases in current assets are subtracted from net income.

Accepted Answer

A) True 
 B)False

Question 15

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the ________ method.

Accepted Answer

The answer of The use of a spreadsheet for analysis...

Question 16

A statement of cash flows explains the differences between the beginning and ending balances of:

Accepted Answer

A) Net income. 
B) Equity. 
C) Cash and cash equivalents. 
D) Working capital. 
E) Cash and short-term investments. 
A) Net income. 
B) Equity. 
C) Cash and cash equivalents. 
D) Working capital. 
E) Cash and short-term investments.

Question 17

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

Accepted Answer

A spreadsheet can help organize the info

Question 18

Financing activities include receiving cash dividends from investments in equity securities.

Accepted Answer

A) True 
 B)False

Question 19

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

Accepted Answer

A) True 
 B)False

Question 20

All of the following statements related to preparation of the statement of cash flows are true except:

Accepted Answer

A) A company may report cash flows from operating activities using either the direct or indirect method. 
B) Interest expense may be reported under operating or financing based on which one results in better cash flows. 
C) Cash dividends paid to shareholders are classified as a financing activity. 
D) Purchase of an intangible asset is classified as an investing activity. 
E) Repaying the principal of notes payable is classified as a financing activity. 
A) A company may report cash flows from operating activities using either the direct or indirect method. 
B) Interest expense may be reported under operating or financing based on which one results in better cash flows. 
C) Cash dividends paid to shareholders are classified as a financing activity. 
D) Purchase of an intangible asset is classified as an investing activity. 
E) Repaying the principal of notes payable is classified as a financing activity.

Exam 12: Reporting Cash Flows

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the direct method.

The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

The accountant for Sysco Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available: What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?

Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed,and distributing cash to owners.

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ________ section.

The cash flow on total assets ratio is computed by dividing cash flows from operations by average total assets.

Explain the purpose and format of the statement of cash flows.Also describe its relevance to decision makers.

The indirect method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

In preparing a company's statement of cash flows using the indirect method,the following information is available: -Net cash provided by operating activities was:

When preparing the operating activities section of the statement of cash flows using the indirect method,decreases in current assets are subtracted from net income.

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the ________ method.

A statement of cash flows explains the differences between the beginning and ending balances of:

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

Financing activities include receiving cash dividends from investments in equity securities.

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

All of the following statements related to preparation of the statement of cash flows are true except:

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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