Exam 12: Reporting Cash Flows

Explain the value of separating cash flows into operating activities,investing activities,and financing activities to financial statement users in analyzing cash flows and the company's financial performance and condition.

(Essay)

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Question 161

The primary purpose of the statement of cash flows is to report all major cash receipts (inflows)and cash payments (outflows)during a period.

(True/False)

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Question 162

Northeast Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information: -Determine the amount of cash flows from financing activities:

(Multiple Choice)

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Question 163

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

(True/False)

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Question 164

________ activities include those transactions that affect long-term liabilities and equity.

(Short Answer)

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Question 165

Use the information provided to calculate the missing cash received for interest for the period.

(Essay)

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Question 166

When preparing the operating section of the statement of cash flows using the indirect method,noncash expenses are ________ net income.

(Short Answer)

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Question 167

In preparing a company's statement of cash flows for the most recent year,the following information is available: -Net cash flows from financing activities for the year were:

(Multiple Choice)

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Question 168

When preparing the operating activities section of the statement of cash flows using the direct method,expenses and losses with no cash outflows are added back to net income.

(True/False)

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Question 169

Use the following information to calculate cash paid for wages and salaries:

(Multiple Choice)

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Question 170

Use the information provided to calculate the cash paid for insurance for the period

(Essay)

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Question 171

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

(True/False)

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Question 172

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

(Multiple Choice)

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Question 173

Use the following information to calculate the net cash provided or used by financing activities for the Hulu Corporation: (a)Net income,$10,000 (b)Sold common stock for $40,000 cash (c)Paid cash dividend of $13,000 (d)Paid bond payable,$28,000 (e)Purchased equipment for $12,000 cash

(Essay)

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Question 174

Based on the information in the following income statement and balance sheet for Monterey Corporation,determine the cash flows from operating activities using the direct method.

(Essay)

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Question 175

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

(True/False)

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Question 176

The purchase of equity securities is classified as an investing activity.

(True/False)

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Question 177

Match each of the following items with the appropriate definitions.

A method of computing and reporting the net cash provided (used)by operating activities that lists the major items of operating cash receipts,and then subtracts the major items of operating cash payments.

Direct method

A financial statement that reports the cash inflows and cash outflows for an accounting period,and classifies those cash flows as operating,investing,or financing activities.

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.

Operating activities

Correct Answer:

Verified

A method of computing and reporting the net cash provided (used)by operating activities that lists the major items of operating cash receipts,and then subtracts the major items of operating cash payments.

A financial statement that reports the cash inflows and cash outflows for an accounting period,and classifies those cash flows as operating,investing,or financing activities.

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.

Transactions that include purchasing and selling plant assets and investments in debt and equity securities.

Activities that involve the production or purchase of merchandise and the sale of goods or services to customers,including expenditures related to administering the business.

A method of computing and reporting that involves adjusting net income by adding and subtracting items that that do not affect cash provided (used)by operating activities.

(Matching)

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Question 178

The purchase of equity securities is classified as a financing activity.

(True/False)

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Question 179

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

(True/False)

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Question 180

Exam 12: Reporting Cash Flows

Explain the value of separating cash flows into operating activities,investing activities,and financing activities to financial statement users in analyzing cash flows and the company's financial performance and condition.

The primary purpose of the statement of cash flows is to report all major cash receipts (inflows)and cash payments (outflows)during a period.

Northeast Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information: -Determine the amount of cash flows from financing activities:

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

________ activities include those transactions that affect long-term liabilities and equity.

Use the information provided to calculate the missing cash received for interest for the period.

When preparing the operating section of the statement of cash flows using the indirect method,noncash expenses are ________ net income.

In preparing a company's statement of cash flows for the most recent year,the following information is available: -Net cash flows from financing activities for the year were:

When preparing the operating activities section of the statement of cash flows using the direct method,expenses and losses with no cash outflows are added back to net income.

Use the following information to calculate cash paid for wages and salaries:

Use the information provided to calculate the cash paid for insurance for the period

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Use the following information to calculate the net cash provided or used by financing activities for the Hulu Corporation: (a)Net income,$10,000 (b)Sold common stock for $40,000 cash (c)Paid cash dividend of $13,000 (d)Paid bond payable,$28,000 (e)Purchased equipment for $12,000 cash

Based on the information in the following income statement and balance sheet for Monterey Corporation,determine the cash flows from operating activities using the direct method.

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

The purchase of equity securities is classified as an investing activity.

The purchase of equity securities is classified as a financing activity.

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

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