Question 1

Cash flows from investing activities,as part of the statement of cash flows,include payments for the acquisition of fixed assets.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  receipts from the issuance of capital stock 
B)  receipts from the sale of investments 
C)  payments for the acquisition of investments 
D)  cash receipts from sales activities 
A)  receipts from the issuance of capital stock 
B)  receipts from the sale of investments 
C)  payments for the acquisition of investments 
D)  cash receipts from sales activities

Question 3

Cost of goods sold reported on the income statement was $155,000.The accounts payable balance increased $8,000,and the inventory balance increased by $21,000 over the year.Determine the amount of cash paid for merchandise.

Accepted Answer

The answer of Cost of goods sold reported on the...

Question 4

Which of the following is not one of the four basic financial statements?

Accepted Answer

A)  balance sheet 
B)  statement of cash flows 
C)  statement of changes in financial position 
D)  income statement 
A)  balance sheet 
B)  statement of cash flows 
C)  statement of changes in financial position 
D)  income statement

Question 5

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

Accepted Answer

A)  an increase in inventory 
B)  a decrease in accounts payable 
C)  preferred dividends declared and paid 
D)  a decrease in accounts receivable 
A)  an increase in inventory 
B)  a decrease in accounts payable 
C)  preferred dividends declared and paid 
D)  a decrease in accounts receivable

Question 6

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

Accepted Answer

A)  receipts from the sale of investments 
B)  payments for the acquisition of investments 
C)  receipts from a note receivable 
D)  receipts from the issuance of capital stock 
A)  receipts from the sale of investments 
B)  payments for the acquisition of investments 
C)  receipts from a note receivable 
D)  receipts from the issuance of capital stock

Question 7

Cash payments for merchandise were

Accepted Answer

A)  $39,000 
B)  $33,000 
C)  $29,000 
D)  $23,000 
A)  $39,000 
B)  $33,000 
C)  $29,000 
D)  $23,000

Question 8

Net income for the year was $29,500.Accounts receivable increased $2,500,and accounts payable increased $5,400.There were no other changes in noncash current assets and liabilities.Under the indirect method,the cash flow from operations is $32,400.

Accepted Answer

A) True 
 B)False

Question 9

Indicate the section (operating activities,investing activities,financing activities,or none)in which each of the following would be reported on the statement of cash flows prepared by the indirect method:

Accepted Answer

The answer of Indicate the section (operating activities,investing activities,financing activities,or...

Question 10

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.

Accepted Answer

A) True 
 B)False

Question 11

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported.
-Dividends received on 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 12

Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows:
​
   Adjust Year 2 net income of $65,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.

Accepted Answer

The answer of Fortune Corporation's comparative balance sheet for current...

Question 13

Samuel Company's accumulated depreciation-equipment increased by $6,000,while patents decreased by $2,200 between balance sheet dates.There were no purchases or sales of depreciable or intangible assets during the year.In addition,the income statement showed a loss of $3,200 from the sale of investments.Assume no changes in noncash current assets and liabilities.
​
Reconcile a net income of $92,000 to net cash flow from operating activities.

Accepted Answer

The answer of Samuel Company's accumulated depreciation-equipment increased by $6,000,while...

Question 14

The acquisition of land in exchange for common stock is an example of noncash investing and financing activity.

Accepted Answer

A) True 
 B)False

Question 15

The net income reported on the income statement for the current year was $250,000.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)  $271,000 
B)  $279,000 
C)  $327,000 
D)  $256,000 
A)  $271,000 
B)  $279,000 
C)  $327,000 
D)  $256,000

Question 16

Cash flows from investing activities,as part of the statement of cash flows,would include any receipts from the issuance of bonds payable.

Accepted Answer

A) True 
 B)False

Question 17

The statement of cash flows is not useful for

Accepted Answer

A)  planning future investing and financing activities 
B)  determining a company's ability to pay its debts 
C)  determining a company's ability to pay dividends 
D)  calculating the net worth of a company 
A)  planning future investing and financing activities 
B)  determining a company's ability to pay its debts 
C)  determining a company's ability to pay dividends 
D)  calculating the net worth of a company

Question 18

Which of the following would not be found in a schedule of noncash investing and financing activities,reported at the end of a statement of cash flows?

Accepted Answer

A)  equipment acquired in exchange for a note payable 
B)  bonds payable exchanged for capital stock 
C)  purchase of treasury stock 
D)  capital stock issued to acquire fixed assets 
A)  equipment acquired in exchange for a note payable 
B)  bonds payable exchanged for capital stock 
C)  purchase of treasury stock 
D)  capital stock issued to acquire fixed assets

Question 19

In preparing the statement of cash flows,the correct order of reporting cash activities is financing,operating,and investing.

Accepted Answer

A) True 
 B)False

Question 20

Cash paid for equipment would be reported on the statement of cash flows in

Accepted Answer

A)  the cash flows from operating activities section 
B)  the cash flows from financing activities section 
C)  the cash flows from investing activities section 
D)  a separate schedule 
A)  the cash flows from operating activities section 
B)  the cash flows from financing activities section 
C)  the cash flows from investing activities section 
D)  a separate schedule

Exam 13: Statement of Cash Flows

Cash flows from investing activities,as part of the statement of cash flows,include payments for the acquisition of fixed assets.

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

Cost of goods sold reported on the income statement was $155,000.The accounts payable balance increased $8,000,and the inventory balance increased by $21,000 over the year.Determine the amount of cash paid for merchandise.

Which of the following is not one of the four basic financial statements?

Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method?

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

Cash payments for merchandise were

Net income for the year was $29,500.Accounts receivable increased $2,500,and accounts payable increased $5,400.There were no other changes in noncash current assets and liabilities.Under the indirect method,the cash flow from operations is $32,400.

Indicate the section (operating activities,investing activities,financing activities,or none)in which each of the following would be reported on the statement of cash flows prepared by the indirect method:

The main disadvantage of the direct method of reporting cash flows from operating activities is that the necessary data are often costly to accumulate.

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported. -Dividends received on investment

Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows: ​ Adjust Year 2 net income of $65,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.

The acquisition of land in exchange for common stock is an example of noncash investing and financing activity.

Cash flows from investing activities,as part of the statement of cash flows,would include any receipts from the issuance of bonds payable.

The statement of cash flows is not useful for

Which of the following would not be found in a schedule of noncash investing and financing activities,reported at the end of a statement of cash flows?

In preparing the statement of cash flows,the correct order of reporting cash activities is financing,operating,and investing.

Cash paid for equipment would be reported on the statement of cash flows in

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

Fortune Corporation's comparative balance sheet for current assets and liabilities was as follows: Adjust Year 2 net income of $65,000 for changes in operating assets and liabilities to arrive at cash flows from operating activities using the indirect method.