Question 1

Preparation of the statement of cash flows relies on the beginning and ending ____________.

Accepted Answer

The answer of Preparation of the statement of cash flows...

Question 2

The _____________________ provides information regarding the sources and uses of a firm's cash.

Accepted Answer

statement

Question 3

When an investing or financing activity takes place without affecting cash it is referred to as _________________________.

Accepted Answer

noncash in

Question 4

Noncash investing and financing transactions, such as the exchange of common stock to purchase assets, represent significant investing and financing activities and are disclosed in a supplementary schedule that is attached to the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 5

Last year, Violet Company reported cost of goods sold of $120,000.Inventories decreased by $34,000 during the year, and accounts payable increased by $30,000.The company uses the direct method to determine net cash flow from operating activities on the statement of cash flows.The cost of goods sold adjusted to a cash basis would be:

Accepted Answer

A)  $120,000. 
B)  $79,000. 
C)  $56,000. 
D)  $93,000. 
A)  $120,000. 
B)  $79,000. 
C)  $56,000. 
D)  $93,000.

Question 6

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

Accepted Answer

A)  added to net income. 
B)  deducted from net income. 
C)  ignored because it does not affect cash. 
D)  not reported on a statement of cash flows. 
A)  added to net income. 
B)  deducted from net income. 
C)  ignored because it does not affect cash. 
D)  not reported on a statement of cash flows.

Question 7

Cash received on the sale of equipment would be considered a financing activity on a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 8

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below:  
  
-The net cash flows from operating activities last year was

Accepted Answer

A)  $181,000. 
B)  $150,000. 
C)  $88,000. 
D)  $161,000. 
A)  $181,000. 
B)  $150,000. 
C)  $88,000. 
D)  $161,000.

Question 9

Emerald Inc.reported the following information for Year 1 and Year 2:  
  Which of the following is the amount of net cash flow from investing activities for Year 2?

Accepted Answer

A)  Cash inflow of $300,000 
B)  Cash outflow of $250,000 
C)  Cash inflow of 45,000 
D)  Cash outflow of $301,000 
A)  Cash inflow of $300,000 
B)  Cash outflow of $250,000 
C)  Cash inflow of 45,000 
D)  Cash outflow of $301,000

Question 10

Use the following major cash flow activities to classify the activities listed below:
-Sold equipment used in the business for cash

Accepted Answer

A) Operating Activity, Source of Cash 
B) Operating Activity, Use of Cash 
C) Investing Activity, Source of Cash 
D) Investing Activity, Use of Cash 
E) Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity 
A) Operating Activity, Source of Cash 
B) Operating Activity, Use of Cash 
C) Investing Activity, Source of Cash 
D) Investing Activity, Use of Cash 
E) Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity

Question 11

Companies can use two different methods to report the amount of cash flow from their operating activities on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 12

An increase in inventories is _____ while computing cash flows from operating activities using the indirect method.

Accepted Answer

A)  added to selling expense 
B)  deducted from net income 
C)  added to depreciation expense 
D)  deducted from retained earnings 
A)  added to selling expense 
B)  deducted from net income 
C)  added to depreciation expense 
D)  deducted from retained earnings

Question 13

Transactions that involve the acquisition or sale of long-term assets are generally classified as investing activities on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

Use the following major cash flow activities to classify the activities listed below:
-Issued Common Stock for cash

Accepted Answer

A) Operating Activity, Source of Cash 
B) Operating Activity, Use of Cash 
C) Investing Activity, Source of Cash 
D) Investing Activity, Use of Cash 
E) Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity 
A) Operating Activity, Source of Cash 
B) Operating Activity, Use of Cash 
C) Investing Activity, Source of Cash 
D) Investing Activity, Use of Cash 
E) Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity

Question 15

The ______________ computes operating cash flow by adjusting net income for items that do not affect cash flows.

Accepted Answer

The answer of The ______________ computes operating cash flow by...

Question 16

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

Accepted Answer

A) True 
 B)False

Question 17

Acquiring new equipment, selling long-term investments, and purchasing land are all examples of _______________.

Accepted Answer

investing

Question 18

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

Accepted Answer

A)  direct method. 
B)  indirect method. 
C)  cost-benefit method. 
D)  working capital method. 
A)  direct method. 
B)  indirect method. 
C)  cost-benefit method. 
D)  working capital method.

Question 19

The following transactions occurred last year at Berry Inc.last year:

Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

Accepted Answer

A)  $31,000. 
B)  $59,000. 
C)  $96,000. 
D)  $79,000. 
A)  $31,000. 
B)  $59,000. 
C)  $96,000. 
D)  $79,000.

Question 20

Use the following major cash flow activities to classify the activities listed below:
-Collection of Sales Revenue

Accepted Answer

A) Operating Activity, Source of Cash 
B) Operating Activity, Use of Cash 
C) Investing Activity, Source of Cash 
D) Investing Activity, Use of Cash 
E) Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity 
A) Operating Activity, Source of Cash 
B) Operating Activity, Use of Cash 
C) Investing Activity, Source of Cash 
D) Investing Activity, Use of Cash 
E) Financing Activity, Source of Cash
F)Financing Activity, Use of Cash
G)Non-cash Investing & Financing Activity

Preparation of the statement of cash flows relies on the beginning and ending ____________.

The _____________________ provides information regarding the sources and uses of a firm's cash.

When an investing or financing activity takes place without affecting cash it is referred to as _________________________.

Noncash investing and financing transactions, such as the exchange of common stock to purchase assets, represent significant investing and financing activities and are disclosed in a supplementary schedule that is attached to the statement of cash flows.

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

Cash received on the sale of equipment would be considered a financing activity on a statement of cash flows.

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: -The net cash flows from operating activities last year was

Emerald Inc.reported the following information for Year 1 and Year 2: Which of the following is the amount of net cash flow from investing activities for Year 2?

Use the following major cash flow activities to classify the activities listed below: -Sold equipment used in the business for cash

Companies can use two different methods to report the amount of cash flow from their operating activities on the statement of cash flows.

An increase in inventories is _____ while computing cash flows from operating activities using the indirect method.

Transactions that involve the acquisition or sale of long-term assets are generally classified as investing activities on the statement of cash flows.

Use the following major cash flow activities to classify the activities listed below: -Issued Common Stock for cash

The ______________ computes operating cash flow by adjusting net income for items that do not affect cash flows.

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

Acquiring new equipment, selling long-term investments, and purchasing land are all examples of _______________.

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

The following transactions occurred last year at Berry Inc.last year: Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

Use the following major cash flow activities to classify the activities listed below: -Collection of Sales Revenue

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Financial Statement Analysis

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Exam 14: Statement of Cash Flows

Preparation of the statement of cash flows relies on the beginning and ending ____________.

The _____________________ provides information regarding the sources and uses of a firm's cash.

When an investing or financing activity takes place without affecting cash it is referred to as _________________________.

Noncash investing and financing transactions, such as the exchange of common stock to purchase assets, represent significant investing and financing activities and are disclosed in a supplementary schedule that is attached to the statement of cash flows.

In calculating cash flows from operating activities using the indirect method, a gain on the sale of equipment is

Cash received on the sale of equipment would be considered a financing activity on a statement of cash flows.

Master Company's net income last year was $88,000 and cash dividends declared and paid to the company stockholders was $60,000.Changes in selected balance sheet accounts for the year appear below: -The net cash flows from operating activities last year was

Emerald Inc.reported the following information for Year 1 and Year 2: Which of the following is the amount of net cash flow from investing activities for Year 2?

Use the following major cash flow activities to classify the activities listed below: -Sold equipment used in the business for cash

Companies can use two different methods to report the amount of cash flow from their operating activities on the statement of cash flows.

An increase in inventories is _____ while computing cash flows from operating activities using the indirect method.

Transactions that involve the acquisition or sale of long-term assets are generally classified as investing activities on the statement of cash flows.

Use the following major cash flow activities to classify the activities listed below: -Issued Common Stock for cash

The ______________ computes operating cash flow by adjusting net income for items that do not affect cash flows.

The activity from the balance sheet to be presented in the financing activities section of the statement of cash flows is based on an analysis of stockholders' equity only.

Acquiring new equipment, selling long-term investments, and purchasing land are all examples of _______________.

Starting with net income and adjusting it for items that affected reported net income but which did not affect cash is called the

The following transactions occurred last year at Berry Inc.last year: Based solely on the above information, net cash flow from financing activities for the year on the statement of cash flows would be:

Use the following major cash flow activities to classify the activities listed below: -Collection of Sales Revenue

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Financial Statement Analysis

Filters