Question 1

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported.
-Increase in accounts receivable

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 2

Kennedy,Inc.reported the following data:
​
   Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Accepted Answer

The answer of Kennedy,Inc.reported the following data:
​
   Prepare...

Question 3

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

Accepted Answer

A)  receipts from the sale of bonds payable 
B)  payments for dividends 
C)  payments for purchase of treasury stock 
D)  payments of interest on bonds payable 
A)  receipts from the sale of bonds payable 
B)  payments for dividends 
C)  payments for purchase of treasury stock 
D)  payments of interest on bonds payable

Question 4

​Net income for the year was $45,500.Accounts receivable increased $5,500,and accounts payable increased by $11,200.Under the indirect method,the cash flow from operations is

Accepted Answer

A)  ​$51,200 
B)  ​$45,500 
C)  ​$62,200 
D)  ​$28,800 
A)  ​$51,200 
B)  ​$45,500 
C)  ​$62,200 
D)  ​$28,800

Question 5

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form:
​
   Additional data for the current year are as follows:
​
   Prepare a statement of cash flows using the indirect method.

Accepted Answer

The answer of The comparative balance sheet of Barry Company...

Question 6

Accounts receivable from sales transactions were $51,000 at the beginning of the year and $64,000 at the end of the year.Net income reported on the income statement for the year was $105,000.Exclusive of the effect of other adjustments,the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is

Accepted Answer

A)  $105,000 
B)  $118,000 
C)  $92,000 
D)  $169,000 
A)  $105,000 
B)  $118,000 
C)  $92,000 
D)  $169,000

Question 7

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

Accepted Answer

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

Question 8

In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method,the amortization of bond discount for the period is deducted from the net income for the period.

Accepted Answer

A) True 
 B)False

Question 9

On the basis of the following data for Larson Co.for the year ending December 31 Year 2,and the preceding year ended December 31 Year 1,prepare a statement of cash flows.Use the indirect method of reporting cash flows from operating activities.In addition to the balance sheet data,assume that:
Equipment costing $125,000 was purchased for cash.
Equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000.
The stock was issued for cash.
​
The only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.
​

Accepted Answer

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

Question 10

The cost of goods sold during the year was $45,000.Inventories were $13,500 and $10,500 at the beginning and end of the year,respectively.Accounts payable (all owed to merchandise suppliers)were $7,000 and $5,000 at the beginning and end of the year,respectively.Using the direct method of reporting cash flows from operating activities,cash payments for merchandise total

Accepted Answer

A)  $46,000 
B)  $44,000 
C)  $50,000 
D)  $40,000 
A)  $46,000 
B)  $44,000 
C)  $50,000 
D)  $40,000

Question 11

Land costing $140,000 was sold for $173,000 cash.The gain on the sale was reported on the income statement as other income.On the statement of cash flows,what amount should be reported as an investing activity from the sale of land?

Accepted Answer

A)  $173,000 
B)  $140,000 
C)  $313,000 
D)  $33,000 
A)  $173,000 
B)  $140,000 
C)  $313,000 
D)  $33,000

Question 12

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 13

Cash paid to acquire treasury stock should be shown on the statement of cash flows under investing activities.

Accepted Answer

A) True 
 B)False

Question 14

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)  payment for interest on short-term notes payable 
C)  payments for the purchase of investments 
D)  payments for cash dividends 
A)  receipts from the issuance of capital stock 
B)  payment for interest on short-term notes payable 
C)  payments for the purchase of investments 
D)  payments for cash dividends

Question 15

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported.
-Decrease in accounts payable balance

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 16

The Dickinson Company reported net income of $155,000 for the current year.Depreciation recorded on buildings and equipment amounted to $65,000 for the year.In addition,a building with an original cost of $250,000 and accumulated depreciation of $190,000 on the date of the sale,was sold for $75,000.Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
​
Prepare the cash flows from the operating activities section of the statement of cash flows using the indirect method.

Accepted Answer

The answer of The Dickinson Company reported net income of...

Question 17

If a business issued bonds payable in exchange for land,the transaction would be reported in a separate schedule on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a noncash investing and financing activity?

Accepted Answer

A)  payment of a cash dividend 
B)  payment of a six-month note payable 
C)  purchase of inventory on account 
D)  issuance of common stock to acquire land 
A)  payment of a cash dividend 
B)  payment of a six-month note payable 
C)  purchase of inventory on account 
D)  issuance of common stock to acquire land

Question 19

The statement of cash flows shows the effects on cash of a company's operating,investing,and financing activities.

Accepted Answer

A) True 
 B)False

Question 20

Cash inflows and outflows are not netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

Accepted Answer

A) True 
 B)False

Exam 13: Statement of Cash Flows

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported. -Increase in accounts receivable

Kennedy,Inc.reported the following data: ​ Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

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

​Net income for the year was $45,500.Accounts receivable increased $5,500,and accounts payable increased by $11,200.Under the indirect method,the cash flow from operations is

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form: ​ Additional data for the current year are as follows: ​ Prepare a statement of cash flows using the indirect method.

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

In preparing the cash flows from operating activities section of the statement of cash flows by the indirect method,the amortization of bond discount for the period is deducted from the net income for the period.

Land costing $140,000 was sold for $173,000 cash.The gain on the sale was reported on the income statement as other income.On the statement of cash flows,what amount should be reported as an investing activity from the sale of land?

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

Cash paid to acquire treasury stock should be shown on the statement of cash flows under investing activities.

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

Identify the section of the statement of cash flows (a-d)where each of the following items would be reported. -Decrease in accounts payable balance

If a business issued bonds payable in exchange for land,the transaction would be reported in a separate schedule on the statement of cash flows.

Which of the following is a noncash investing and financing activity?

The statement of cash flows shows the effects on cash of a company's operating,investing,and financing activities.

Cash inflows and outflows are not netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

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

Kennedy,Inc.reported the following data: Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method.

Net income for the year was $45,500.Accounts receivable increased $5,500,and accounts payable increased by $11,200.Under the indirect method,the cash flow from operations is

The comparative balance sheet of Barry Company for Years 1 and 2 ended December 31 appears below in condensed form: Additional data for the current year are as follows: Prepare a statement of cash flows using the indirect method.