Question 1

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

Accepted Answer

The answer of ________ activities include those transactions that affect...

Question 2

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

Accepted Answer

Noncash investing and financing activiti

Question 3

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
-Purchased equipment for cash.

Accepted Answer

A) O 
B) N 
C) I 
D) F 
A) O 
B) N 
C) I 
D) F

Question 4

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.

Accepted Answer

By separating cash flows into three cate

Question 5

In preparing a company's statement of cash flows for the most recent year using the indirect method,the following information is available:
$$\begin{array} { | l | r | } 
\hline \text { Net income for the year was } & \$ 52,000 \
\hline \text { Accounts payable increased by } & 18,000 \
\hline \text { Accounts receivable decreased by } & 25,000 \
\hline \text { Inventories increased by } & 5,000 \
\hline \text { Depreciation expense was } & 30,000 \
\hline
\end{array}$$
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 6

The cash flow on total assets ratio:

Accepted Answer

A)  Is the same as return on assets. 
B)  Is the same as profit margin. 
C)  Can be an indicator of earnings quality. 
D)  Is highly affected by accounting principles of income recognition and measurement. 
E)  Is average net assets divided by cash flows from operations. 
A)  Is the same as return on assets. 
B)  Is the same as profit margin. 
C)  Can be an indicator of earnings quality. 
D)  Is highly affected by accounting principles of income recognition and measurement. 
E)  Is average net assets divided by cash flows from operations.

Question 7

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

Accepted Answer

answers c

Question 8

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash financing and investing activity.
-Purchased land in exchange for a note payable.

Accepted Answer

A) F 
B) O 
C) N 
D) I 
A) F 
B) O 
C) N 
D) I

Question 9

The direct method for the preparation of the operating activities section of the statement of cash flows:

Accepted Answer

A)  Separately lists each major item of operating cash receipts and cash payments. 
B)  Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement. 
C)  Reports a different amount of cash flows from operations than if the indirect method is used. 
D)  Is required if the company is a merchandiser. 
E)  Is required by the FASB. 
A)  Separately lists each major item of operating cash receipts and cash payments. 
B)  Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement. 
C)  Reports a different amount of cash flows from operations than if the indirect method is used. 
D)  Is required if the company is a merchandiser. 
E)  Is required by the FASB.

Question 10

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Accepted Answer

A) True 
 B)False

Question 11

Keita Co.reported net income of $213.4 million,net cash provided by operating activities of $151.3 million,total cash flows of $187.7 million,and average total assets of 2,314.8 million at the end of the year.Calculate the cash flow on total assets ratio for Keita.

Accepted Answer

Cash Flow on Total A

Question 12

The purchase of stock in another company is classified as a financing activity.

Accepted Answer

A) True 
 B)False

Question 13

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended.The following information is available:
$$\begin{array} { | l | r | } 
\hline \text { Retained earnings balance at the beginning of the year } & \$ 126,000 \
\hline \text { Cash dividends declared for the year } & 46,000 \
\hline \text { Proceeds from the sale of equipment } & 81,000 \
\hline \text { Gain on the sale of equipment } &7,000  \
\hline \text { Cash dividends payable at the beginning of the year } &18,000\
\hline \text { Cash dividends payable at the end of the year } &  20,000 \
\hline \text { Net income for the year } & 92,000
\end{array}$$
The amount of cash dividends paid during the year would be:

Accepted Answer

A)  $48,000. 
B)  $46,000. 
C)  $8,000. 
D)  $64,000. 
E)  $44,000. 
A)  $48,000. 
B)  $46,000. 
C)  $8,000. 
D)  $64,000. 
E)  $44,000.

Question 14

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
-Sale of land for cash.

Accepted Answer

A) O 
B) N 
C) I 
D) F 
A) O 
B) N 
C) I 
D) F

Question 15

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
-Signed a note payable in exchange for cash.

Accepted Answer

A) O 
B) N 
C) I 
D) F 
A) O 
B) N 
C) I 
D) F

Question 16

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 17

________ activities generally include those transactions and events that affect long-term assets.

Accepted Answer

The answer of ________ activities generally include those transactions and...

Question 18

Since it is recommended by the FASB,the direct method of preparing the statement of cash flows is most frequently used.

Accepted Answer

A) True 
 B)False

Question 19

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
-Purchased a warehouse in exchange for shares of its stock.

Accepted Answer

A) O 
B) N 
C) I 
D) F 
A) O 
B) N 
C) I 
D) F

Question 20

Explain how cash flows from investing and financing activities are determined.

Accepted Answer

Cash flows from investing activities are

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

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Purchased equipment for cash.

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 cash flow on total assets ratio:

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

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash financing and investing activity. -Purchased land in exchange for a note payable.

The direct method for the preparation of the operating activities section of the statement of cash flows:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Keita Co.reported net income of $213.4 million,net cash provided by operating activities of $151.3 million,total cash flows of $187.7 million,and average total assets of 2,314.8 million at the end of the year.Calculate the cash flow on total assets ratio for Keita.

The purchase of stock in another company is classified as a financing activity.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Sale of land for cash.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Signed a note payable in exchange for cash.

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

________ activities generally include those transactions and events that affect long-term assets.

Since it is recommended by the FASB,the direct method of preparing the statement of cash flows is most frequently used.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Purchased a warehouse in exchange for shares of its stock.

Explain how cash flows from investing and financing activities are determined.

Accounting in Business

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters

Exam 12: Reporting Cash Flows

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

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Purchased equipment for cash.

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 cash flow on total assets ratio:

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

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash financing and investing activity. -Purchased land in exchange for a note payable.

The direct method for the preparation of the operating activities section of the statement of cash flows:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period net income.

Keita Co.reported net income of $213.4 million,net cash provided by operating activities of $151.3 million,total cash flows of $187.7 million,and average total assets of 2,314.8 million at the end of the year.Calculate the cash flow on total assets ratio for Keita.

The purchase of stock in another company is classified as a financing activity.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Sale of land for cash.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Signed a note payable in exchange for cash.

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

________ activities generally include those transactions and events that affect long-term assets.

Since it is recommended by the FASB,the direct method of preparing the statement of cash flows is most frequently used.

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity. -Purchased a warehouse in exchange for shares of its stock.

Explain how cash flows from investing and financing activities are determined.

Accounting in Business

Analyzing 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

Time Value of Money

Investments

Partnership Accounting

Filters

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