Question 1

If accounts payable have increased during a period,

Accepted Answer

A)  revenues on an accrual basis are less than revenues on a cash basis 
B)  expenses on an accrual basis are less than expenses on a cash basis 
C)  expenses on an accrual basis are the same as expenses on a cash basis 
D)  expenses on an accrual basis are greater than expenses on a cash basis 
A)  revenues on an accrual basis are less than revenues on a cash basis 
B)  expenses on an accrual basis are less than expenses on a cash basis 
C)  expenses on an accrual basis are the same as expenses on a cash basis 
D)  expenses on an accrual basis are greater than expenses on a cash basis

Question 2

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported.
-Purchase of the stock of another company as investment

Accepted Answer

A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Schedule of noncash financing and investing
   
A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Schedule of noncash financing and investing

Question 3

The board of directors declared cash dividends total $168,000 during the year.The comparative balance sheet indicated dividends payable of $46,000 at the beginning of the year and $42,000 at the end of the year.What was the amount of cash payments to stockholders during the year?

Accepted Answer

@#IMG-DLM& The company probably had four quarterly

Question 4

The following information is available from the current period financial statements: ​
  The net cash flow from operating activities using the indirect method is

Accepted Answer

A)  $230,000 
B)  $188,000 
C)  $198,000 
D)  $156,000 
A)  $230,000 
B)  $188,000 
C)  $198,000 
D)  $156,000

Question 5

On the statement of cash flows,the cash flows from investing activities section would include

Accepted Answer

A)  receipts from the issuance of capital stock 
B)  payments for dividends 
C)  payments for retirement of bonds payable 
D)  receipts from the sale of investments 
A)  receipts from the issuance of capital stock 
B)  payments for dividends 
C)  payments for retirement of bonds payable 
D)  receipts from the sale of investments

Question 6

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
​
   Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Accepted Answer

The answer of Balances of the current asset and current...

Question 7

Which of the following should be shown on a statement of cash flows under the financing activities section?

Accepted Answer

A)  the purchase of a long-term investment in the common stock of another company 
B)  the payment of cash to retire a long-term note 
C)  the proceeds from the sale of a building 
D)  the issuance of a long-term note to acquire land 
A)  the purchase of a long-term investment in the common stock of another company 
B)  the payment of cash to retire a long-term note 
C)  the proceeds from the sale of a building 
D)  the issuance of a long-term note to acquire land

Question 8

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported.
-Exchange of land for note payable

Accepted Answer

A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Schedule of noncash financing and investing
   
A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Schedule of noncash financing and investing

Question 9

To determine cash payments for operating expenses for the statement of cash flows using the direct method,a decrease in accrued expenses is added to operating expenses other than depreciation.

Accepted Answer

A) True 
 B)False

Question 10

On the statement of cash flows prepared by the indirect method,the cash flows from operating activities section would include

Accepted Answer

A)  receipts from the sale of investments 
B)  amortization of premium on bonds payable 
C)  payments for cash dividends 
D)  receipts from the issuance of capital stock 
A)  receipts from the sale of investments 
B)  amortization of premium on bonds payable 
C)  payments for cash dividends 
D)  receipts from the issuance of capital stock

Question 11

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:

Accepted Answer

The answer of The cash flows from operating activities are...

Question 12

Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year,respectively.Income reported on the income statement for the year was $110,000.Exclusive of the effect of other adjustments,the net cash flows from operating activities to be reported on the statement of cash flows using the indirect method is

Accepted Answer

A)  $118,000 
B)  $110,000 
C)  $102,000 
D)  $150,000 
A)  $118,000 
B)  $110,000 
C)  $102,000 
D)  $150,000

Question 13

Cash flows from investing activities,as part of the statement of cash flows,would include any payments for the purchase of treasury stock.

Accepted Answer

A) True 
 B)False

Question 14

The direct method of preparing the operating activities section of the statement of cash flows reports major classes of cash receipts and cash payments related to the day-to-day operations of the business.

Accepted Answer

A) True 
 B)False

Question 15

The income statement disclosed the following items for the current year:
​
​
   Balances of the current assets and current liabilities accounts changed between December 31,last year,and December 31,this year,as follows:
​
​
   Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Accepted Answer

@#IMG-DLM& Note:The change in dividends

Question 16

Durrand Corporation's accumulated depreciation increased by $12,000,while patents decreased by $2,200 between consecutive balance sheet dates.There were no purchases or sales of depreciable or intangible assets during the year.In addition,the income statement showed a gain of $4,300 from sale of land.Reconcile a net income of $65,000 to net cash flow from operating activities.

Accepted Answer

The answer of Durrand Corporation's accumulated depreciation increased by $12,000,while...

Question 17

​Firefly Inc.sold land for $225,000 cash.The land had been purchased five years earlier for $275,000.The loss on the sale was reported on the income statement.On the statement of cash flows,what amount should Firefly report as an investing activity from the sale of the land?

Accepted Answer

A)  ​$225,000 
B)  ​$275,000 
C)  ​$50,000 
D)  ​$500,000 
A)  ​$225,000 
B)  ​$275,000 
C)  ​$50,000 
D)  ​$500,000

Question 18

On the basis of the following data for Branch Co.for the current and preceding years ended December 31,prepare a statement of cash flows for the current year using the indirect method.
Assume that equipment costing $125,000 was purchased for cash and the land was sold for $15,000.The stock was issued for cash and the only entries in the retained earnings account were for net income of $56,000 and cash dividends declared and paid of $18,000.

Accepted Answer

The answer of On the basis of the following data...

Question 19

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported.
-Loss on sale of equipment

Accepted Answer

A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Schedule of noncash financing and investing
   
A) Operating activities 
B) Financing activities 
C) Investing activities 
D) Schedule of noncash financing and investing

Question 20

The net income reported on the income statement for the current year was $275,000.Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000,respectively.Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows: What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method?

Accepted Answer

A)  $198,000 
B)  $324,000 
C)  $352,000 
D)  $296,000 
A)  $198,000 
B)  $324,000 
C)  $352,000 
D)  $296,000

Exam 13: Statement of Cash Flows

If accounts payable have increased during a period,

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported. -Purchase of the stock of another company as investment

The board of directors declared cash dividends total $168,000 during the year.The comparative balance sheet indicated dividends payable of $46,000 at the beginning of the year and $42,000 at the end of the year.What was the amount of cash payments to stockholders during the year?

The following information is available from the current period financial statements: ​ The net cash flow from operating activities using the indirect method is

On the statement of cash flows,the cash flows from investing activities section would include

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: ​ Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Which of the following should be shown on a statement of cash flows under the financing activities section?

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported. -Exchange of land for note payable

To determine cash payments for operating expenses for the statement of cash flows using the direct method,a decrease in accrued expenses is added to operating expenses other than depreciation.

On the statement of cash flows prepared by the indirect method,the cash flows from operating activities section would include

The cash flows from operating activities are reported by the direct method on the statement of cash flows.Determine the following:

Cash flows from investing activities,as part of the statement of cash flows,would include any payments for the purchase of treasury stock.

The direct method of preparing the operating activities section of the statement of cash flows reports major classes of cash receipts and cash payments related to the day-to-day operations of the business.

​Firefly Inc.sold land for $225,000 cash.The land had been purchased five years earlier for $275,000.The loss on the sale was reported on the income statement.On the statement of cash flows,what amount should Firefly report as an investing activity from the sale of the land?

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported. -Loss on sale of equipment

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The following information is available from the current period financial statements: The net cash flow from operating activities using the indirect method is

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Firefly Inc.sold land for $225,000 cash.The land had been purchased five years earlier for $275,000.The loss on the sale was reported on the income statement.On the statement of cash flows,what amount should Firefly report as an investing activity from the sale of the land?