Question 1

A company had net cash flows from operations of $341,000,net income of $286,000 and average total assets of $1,850,000.The cash flow on total assets ratio equals:

Accepted Answer

A) 83.9% 
B) 542.5% 
C) 15.5% 
D) 18.4% 
E) 646.9% 
A) 83.9% 
B) 542.5% 
C) 15.5% 
D) 18.4% 
E) 646.9%

Question 2

In preparing Tywin Company's statement of cash flows for the most recent year,the following information is available:  Net cash flows from investing activities for the year were:

Accepted Answer

A) $438,000 of net cash used. 
B) $438,000 of net cash provided. 
C) $264,000 of net cash used. 
D) $351,000 of net cash used. 
E) $264,000 of net cash provided. 
A) $438,000 of net cash used. 
B) $438,000 of net cash provided. 
C) $264,000 of net cash used. 
D) $351,000 of net cash used. 
E) $264,000 of net cash provided.

Question 3

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash investing or financing activity. 
E) This is not reported on the statement of cash flows. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash investing or financing activity. 
E) This is not reported on the statement of cash flows.

Question 4

Use the following company information to prepare a schedule of significant noncash investing and financing activities:
(a)Sold a building with a book value of $300,000 for $225,000 cash and sold land with a book value of $40,000 for $65,000 cash.
(b)Issued 15,000 shares of $10 par value common stock in exchange for equipment with a market value of $175,000.
(c)Retired a $100,000,8% bond by issuing another $100,000,7% bond issue.
(d)Acquired land by issuing a twenty-year,5%,$73,000 note payable.

Accepted Answer

The answer of Use the following company information to prepare...

Question 5

Use the following financial statements and additional information to (1)prepare a complete statement of cash flows for the year ended December 31,Year 2.The cash provided or used by operating activities should be reported using the direct method,and (2)compute the company's cash flow on total assets ratio for Year 2.
     Additional Information
a.A $20,000 note payable is retired at its carrying value in exchange for cash.
b.The only changes affecting retained earnings are net income and cash dividends paid.
c.New equipment is acquired for $120,000 cash.
d.Received cash for the sale of equipment that had cost $85,000,yielding a gain of $4,700.
e.Prepaid expenses relate to Other Expenses on the income statement.
f.All purchases and sales of merchandise inventory are on credit.

Accepted Answer

(1)
 @#IMG-DLM& (2)$109,700/[(522,280+427,480)/2]

Question 6

When using the indirect method to calculate and report net cash provided or used by operating activities,which of the following is subtracted from net income?

Accepted Answer

A) Decrease in income taxes payable. 
B) Depreciation expense. 
C) Amortization of intangible assets. 
D) Bad debts expense. 
E) Decrease in merchandise inventory. 
A) Decrease in income taxes payable. 
B) Depreciation expense. 
C) Amortization of intangible assets. 
D) Bad debts expense. 
E) Decrease in merchandise inventory.

Question 7

Jordan's net income for the year ended December 31,Year 2 was $185,000.Information from Jordan's comparative balance sheets is given below.Compute the cash received from the sale of its common stock during Year 2.

Accepted Answer

A) $185,000. 
B) $106,000. 
C) $95,000. 
D) $50,000. 
E) $145,000. 
A) $185,000. 
B) $106,000. 
C) $95,000. 
D) $50,000. 
E) $145,000.

Question 8

A main purpose of the statement of cash flows is to report all the major cash ________ and cash ________.

Accepted Answer

receipts (or inflows

Question 9

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally are affected by:

Accepted Answer

A) Net income,current assets,and current liabilities. 
B) Noncurrent assets. 
C) Noncurrent liability and equity accounts. 
D) Both noncurrent assets and noncurrent liabilities. 
E) Equity accounts only. 
A) Net income,current assets,and current liabilities. 
B) Noncurrent assets. 
C) Noncurrent liability and equity accounts. 
D) Both noncurrent assets and noncurrent liabilities. 
E) Equity accounts only.

Question 10

Alvarez Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available:   
-The ending balance in retained earnings is:

Accepted Answer

A) $343,000. 
B) $213,000. 
C) $293,000. 
D) $297,500. 
E) $301,000. 
A) $343,000. 
B) $213,000. 
C) $293,000. 
D) $297,500. 
E) $301,000.

Question 11

The statement of cash flows cannot help address questions such as:

Accepted Answer

A) How is the increase in investments financed? 
B) What is the source of cash for new plant assets? 
C) How much cash is generated from or used in operations? 
D) How much of the company's revenues have been retained as profit? 
E) Why is cash flow from operations different from income? 
A) How is the increase in investments financed? 
B) What is the source of cash for new plant assets? 
C) How much cash is generated from or used in operations? 
D) How much of the company's revenues have been retained as profit? 
E) Why is cash flow from operations different from income?

Question 12

Receipts of cash dividends and interest earned on loans are classified as investing activities.

Accepted Answer

A) True 
 B)False

Question 13

A company purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire $150,000 is reported as a cash outflow in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

Common uses of the statement of cash flows include all but which of the following?

Accepted Answer

A) Management prediction of future cash flows for decision making. 
B) Investor assessment of cash flows before buying and selling stock. 
C) Creditor evaluation of a company's ability to generate cash to cover debt. 
D) Government assessment of whether the company paid the correct amount of taxes. 
E) Management determination of the specific sources and uses of cash. 
A) Management prediction of future cash flows for decision making. 
B) Investor assessment of cash flows before buying and selling stock. 
C) Creditor evaluation of a company's ability to generate cash to cover debt. 
D) Government assessment of whether the company paid the correct amount of taxes. 
E) Management determination of the specific sources and uses of cash.

Question 15

The reporting of investing activities in the statement of cash flows is identical under the direct method and indirect method.

Accepted Answer

A) True 
 B)False

Question 16

Of the following,which one affects cash during a period?

Accepted Answer

A) The declaration of a stock dividend. 
B) Writing off an uncollectible account receivable. 
C) The declaration of a cash dividend. 
D) An adjusting entry recognizing the expiration of prepaid insurance. 
E) The payment of interest expense accrued in a previous accounting period. 
A) The declaration of a stock dividend. 
B) Writing off an uncollectible account receivable. 
C) The declaration of a cash dividend. 
D) An adjusting entry recognizing the expiration of prepaid insurance. 
E) The payment of interest expense accrued in a previous accounting period.

Question 17

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

Accepted Answer

The indirect method for preparing the op

Question 18

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

Accepted Answer

note; schedule inclu

Question 19

Preparation of the statement of cash flows does not involve:

Accepted Answer

A) Computing the net increase or decrease in cash. 
B) Computing and reporting net cash provided or used by operations. 
C) Computing the profit compared to the net increase or decrease in cash. 
D) Computing and reporting net cash provided or used by financing activities. 
E) Computing and reporting net cash provided or used by investing activities. 
A) Computing the net increase or decrease in cash. 
B) Computing and reporting net cash provided or used by operations. 
C) Computing the profit compared to the net increase or decrease in cash. 
D) Computing and reporting net cash provided or used by financing activities. 
E) Computing and reporting net cash provided or used by investing activities.

Question 20

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Accepted Answer

A) $69,900. 
B) $108,900. 
C) $93,900. 
D) $85,700. 
E) $81,600. 
A) $69,900. 
B) $108,900. 
C) $93,900. 
D) $85,700. 
E) $81,600.

Exam 12: Reporting Cash Flows

A company had net cash flows from operations of $341,000,net income of $286,000 and average total assets of $1,850,000.The cash flow on total assets ratio equals:

In preparing Tywin Company's statement of cash flows for the most recent year,the following information is available: Net cash flows from investing activities for the year were:

The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:

When using the indirect method to calculate and report net cash provided or used by operating activities,which of the following is subtracted from net income?

Jordan's net income for the year ended December 31,Year 2 was $185,000.Information from Jordan's comparative balance sheets is given below.Compute the cash received from the sale of its common stock during Year 2.

A main purpose of the statement of cash flows is to report all the major cash ________ and cash ________.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally are affected by:

Alvarez Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available: -The ending balance in retained earnings is:

The statement of cash flows cannot help address questions such as:

Receipts of cash dividends and interest earned on loans are classified as investing activities.

A company purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire $150,000 is reported as a cash outflow in the financing section of the statement of cash flows.

Common uses of the statement of cash flows include all but which of the following?

The reporting of investing activities in the statement of cash flows is identical under the direct method and indirect method.

Of the following,which one affects cash during a period?

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

Noncash financing and investing activities are disclosed in a ________ or in a separate ________.

Preparation of the statement of cash flows does not involve:

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

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

Filters

A main purpose of the statement of cash flows is to report all the major cash and cash .

Noncash financing and investing activities are disclosed in a or in a separate .