Question 1

Use the following major cash flow activities to classify the activities listed below:
-Reported profitable operations (Net Income)

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 2

Which of the following is added to net income to compute net cash from operating activities using the indirect method?

Accepted Answer

A)  A loss on sale of equipment 
B)  A gain on sale of a long-term investment 
C)  An increase in accounts receivable 
D)  An increase in goodwill 
A)  A loss on sale of equipment 
B)  A gain on sale of a long-term investment 
C)  An increase in accounts receivable 
D)  An increase in goodwill

Question 3

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
-Purchase of a building for cash.

Accepted Answer

A) Added to net income 
B) Deducted from net income 
C) Cash outflow--investing activity 
D) Cash inflow--investing activity 
E) Cash outflow--financing activity
F)Cash inflow--financing activity
G)significant noncash investing and financing activity 
A) Added to net income 
B) Deducted from net income 
C) Cash outflow--investing activity 
D) Cash inflow--investing activity 
E) Cash outflow--financing activity
F)Cash inflow--financing activity
G)significant noncash investing and financing activity

Question 4

Worksheets offer increased ____________ in form and the added convenience of spreadsheet software packages.

Accepted Answer

The answer of Worksheets offer increased ____________ in form and...

Question 5

Accounts receivable arising from sales to customers amounted to $80,000 and $65,000 at the beginning and end of the year respectively.Net income reported on the income statement for the year was $150,000.Exclusive of the effect of other adjustments, the cash inflows from operating activities to be reported on the statement of cash flows are:

Accepted Answer

A)  $259,000. 
B)  $120,000. 
C)  $200,000. 
D)  $165,000. 
A)  $259,000. 
B)  $120,000. 
C)  $200,000. 
D)  $165,000.

Question 6

A loss on the sale of equipment is subtracted from net income in determining net cash from operating activities under the indirect method.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following investing activities results in a cash inflow?

Accepted Answer

A)  selling treasury stock. 
B)  retirement of bonds. 
C)  disposal of a building. 
D)  paying cash dividends. 
A)  selling treasury stock. 
B)  retirement of bonds. 
C)  disposal of a building. 
D)  paying cash dividends.

Question 8

Which of the following is included in operating activities?

Accepted Answer

A)  An increase in long-term debt 
B)  An increase in equity 
C)  An increase in accounts receivable 
D)  All of these. 
A)  An increase in long-term debt 
B)  An increase in equity 
C)  An increase in accounts receivable 
D)  All of these.

Question 9

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below:  
 
- The net cash flows from investing activities to be reported in a statement of cash flows is

Accepted Answer

A)  $(75,000). 
B)  $75,000. 
C)  $(115,000). 
D)  $115,000. 
A)  $(75,000). 
B)  $75,000. 
C)  $(115,000). 
D)  $115,000.

Question 10

If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

Accepted Answer

A)  $37,500. 
B)  $50,000. 
C)  $62,500. 
D)  $12,500. 
A)  $37,500. 
B)  $50,000. 
C)  $62,500. 
D)  $12,500.

Question 11

The following events occurred last year for the Bronze Company:   
Considering only the above transactions, the net cash flow from financing activities on the statement of cash flows was:

Accepted Answer

A)  $25,000. 
B)  $30,000. 
C)  $76,000. 
D)  $43,000. 
A)  $25,000. 
B)  $30,000. 
C)  $76,000. 
D)  $43,000.

Question 12

The following items were reported on the balance sheets and income statement for Collin Inc.:  
How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows using the indirect method?

Accepted Answer

A)  as an addition to sales 
B)  as a deduction from sales 
C)  as an addition to net income 
D)  as a deduction from net income 
A)  as an addition to sales 
B)  as a deduction from sales 
C)  as an addition to net income 
D)  as a deduction from net income

Question 13

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset and current liability accounts.

Accepted Answer

A) True 
 B)False

Question 14

Use the following major cash flow activities to classify the activities listed below:
-Payment of Operating Expenses

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

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method.
-Issuance of common stock for cash.

Accepted Answer

A) Added to net income 
B) Deducted from net income 
C) Cash outflow--investing activity 
D) Cash inflow--investing activity 
E) Cash outflow--financing activity
F)Cash inflow--financing activity
G)significant noncash investing and financing activity 
A) Added to net income 
B) Deducted from net income 
C) Cash outflow--investing activity 
D) Cash inflow--investing activity 
E) Cash outflow--financing activity
F)Cash inflow--financing activity
G)significant noncash investing and financing activity

Question 16

Under the indirect method, the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments, and all accruals of future operating cash receipts or payments.

Accepted Answer

A) True 
 B)False

Question 17

Total operating expenses on Ocean Company's income statement for last year totaled $400,000.During the year, accrued liabilities increased by $23,000 and prepaid expenses increased by $16,000.Depreciation expense for the year was $30,000.Based on this information, operating expenses adjusted to a cash basis under the direct method on the statement of cash flows would be:

Accepted Answer

A)  $300,000. 
B)  $363,000. 
C)  $272,000. 
D)  $518,000. 
A)  $300,000. 
B)  $363,000. 
C)  $272,000. 
D)  $518,000.

Question 18

The most widely used method for calculating operating cash flows is the _____.

Accepted Answer

A)  indirect method 
B)  accrual method 
C)  direct method 
D)  high-low method 
A)  indirect method 
B)  accrual method 
C)  direct method 
D)  high-low method

Question 19

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 greater than expenses on a cash basis. 
D)  expenses on an accrual basis are the same as 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 greater than expenses on a cash basis. 
D)  expenses on an accrual basis are the same as expenses on a cash basis.

Question 20

Use the following major cash flow activities to classify the activities listed below:
-Payment of cash dividends

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

Use the following major cash flow activities to classify the activities listed below: -Reported profitable operations (Net Income)

Which of the following is added to net income to compute net cash from operating activities using the indirect method?

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Purchase of a building for cash.

Worksheets offer increased ____________ in form and the added convenience of spreadsheet software packages.

A loss on the sale of equipment is subtracted from net income in determining net cash from operating activities under the indirect method.

Which of the following investing activities results in a cash inflow?

Which of the following is included in operating activities?

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from investing activities to be reported in a statement of cash flows is

If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

The following events occurred last year for the Bronze Company: Considering only the above transactions, the net cash flow from financing activities on the statement of cash flows was:

The following items were reported on the balance sheets and income statement for Collin Inc.: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows using the indirect method?

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset and current liability accounts.

Use the following major cash flow activities to classify the activities listed below: -Payment of Operating Expenses

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Issuance of common stock for cash.

Under the indirect method, the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments, and all accruals of future operating cash receipts or payments.

The most widely used method for calculating operating cash flows is the _____.

If accounts payable have increased during a period,

Use the following major cash flow activities to classify the activities listed below: -Payment of cash dividends

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

Use the following major cash flow activities to classify the activities listed below: -Reported profitable operations (Net Income)

Which of the following is added to net income to compute net cash from operating activities using the indirect method?

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Purchase of a building for cash.

Worksheets offer increased ____________ in form and the added convenience of spreadsheet software packages.

A loss on the sale of equipment is subtracted from net income in determining net cash from operating activities under the indirect method.

Which of the following investing activities results in a cash inflow?

Which of the following is included in operating activities?

Chandler Company's net income last year was $98,000 and cash dividends declared and paid to the company stockholders was $13,000.Changes in selected balance sheet accounts for the year appear below: - The net cash flows from investing activities to be reported in a statement of cash flows is

If a loss of $12,500 is incurred in selling (for cash) office equipment having a book value of $50,000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is

The following events occurred last year for the Bronze Company: Considering only the above transactions, the net cash flow from financing activities on the statement of cash flows was:

The following items were reported on the balance sheets and income statement for Collin Inc.: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows using the indirect method?

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset and current liability accounts.

Use the following major cash flow activities to classify the activities listed below: -Payment of Operating Expenses

For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. -Issuance of common stock for cash.

Under the indirect method, the net cash flow from operating activities is computed by adjusting net income to remove the effect of all deferrals of past operating cash receipts and payments, and all accruals of future operating cash receipts or payments.

The most widely used method for calculating operating cash flows is the _____.

If accounts payable have increased during a period,

Use the following major cash flow activities to classify the activities listed below: -Payment of cash dividends

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