Question 1

The purchase of treasury stock is an investing cash outflow.

Accepted Answer

A) True 
 B)False

Question 2

Hanson Company had the following account balances for 2016:
 
Hanson reported net income of $90,000 for 2016.Assuming no other changes in current account balances,what is the amount of net cash provided by operating activities for 2016 reported in the statement of cash flows?

Accepted Answer

A) $ 70,000. 
B) $ 80,000. 
C) $100,000. 
D) $110,000. 
A) $ 70,000. 
B) $ 80,000. 
C) $100,000. 
D) $110,000.

Question 3

A firm reported ($ in millions)net cash inflows (outflows)as follows: operating $75,investing ($200),and financing $350.The beginning cash balance was $250.What was the ending cash balance?

Accepted Answer

A) $875. 
B) $ 25. 
C) $475. 
D) $125. 
A) $875. 
B) $ 25. 
C) $475. 
D) $125.

Question 4

Use the following to answer questions 
In its 2015 Annual Report to Shareholders,Kinney Inc.reported the following Consolidated Statement of Cash Flows:
For the years ended December 31,
    
-Kinney reported cost of goods sold of $168,114,150 in its fiscal 2015 income statement.Assuming that Kinney uses accounts payable strictly for inventory purchases and that all such purchases are on credit,how much cash did Kinney pay during the year for inventories:
(a)To inventory suppliers?
(b)To employees?

Accepted Answer

(a. )Assuming that there were no invento

Question 5

During the year,cash increased by $300 million.Investing and financing activities created positive cash flow totaling $500 million.What were net cash flows from operating activities in the statement of cash flows?

Accepted Answer

A) Inflow of $300 million. 
B) Outflow of $200 million. 
C) Outflow of $300 million. 
D) Inflow of $600 million. 
A) Inflow of $300 million. 
B) Outflow of $200 million. 
C) Outflow of $300 million. 
D) Inflow of $600 million.

Question 6

Use the following to answer questions 
In its 2015 Annual Report to Shareholders,Kinney Inc.reported the following Consolidated Statement of Cash Flows:
For the years ended December 31,
    
-Assuming the decrease in accrued expenses during fiscal year 2015 included a $20,000 reduction due to taxes,compute the income tax expense for Kinney in that year.

Accepted Answer

The reduction in accrued taxes is actual

Question 7

Listed below are reporting classifications for a statement of cash flows using the indirect method for reporting operating cash flows.Indicate the reporting classification that would apply to each of the five transactions described below by placing the letter of the reporting classification in the space provided by each transaction.

Accepted Answer

The answer of Listed below are reporting classifications for a...

Question 8

If bond interest expense is $800,000,bond interest payable increased by $8,000 and bond discount decreased by $2,000,cash paid for bond interest is:

Accepted Answer

A) $790,000. 
B) $784,000. 
C) $806,000. 
D) $910,000. 
A) $790,000. 
B) $784,000. 
C) $806,000. 
D) $910,000.

Question 9

A statement of cash flows and its related disclosure note typically do not report:

Accepted Answer

A) An acquisition of the use of a building with a lease agreement. 
B) The purchase of treasury stock. 
C) Stock dividends. 
D) Notes payable issued for a tract of land. 
A) An acquisition of the use of a building with a lease agreement. 
B) The purchase of treasury stock. 
C) Stock dividends. 
D) Notes payable issued for a tract of land.

Question 10

Use the following to answer questions 
In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows:
    
-What was most responsible for the negative cash flow from financing activities during 2014? What amount was paid?

Accepted Answer

Principal payments o

Question 11

In preparing its cash flow statement for the year ended December 31,2016,Red Co.gathered the following data:  
In its December 31,2016,statement of cash flows,what amount should Red report as net cash outflows from investing activities?

Accepted Answer

A) $340,000. 
B) $352,000. 
C) $376,000. 
D) $388,000. 
A) $340,000. 
B) $352,000. 
C) $376,000. 
D) $388,000.

Question 12

Which one of the following financial statements does not report amounts primarily on an accrual basis?

Accepted Answer

A) Income statement. 
B) Balance sheet. 
C) Statement of cash flows. 
D) Statement of shareholders' equity. 
A) Income statement. 
B) Balance sheet. 
C) Statement of cash flows. 
D) Statement of shareholders' equity.

Question 13

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Accepted Answer

Cash flows from financing acti

Question 14

Use the following to answer questions 
In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows:
    
-What was the net change in cash and cash equivalents experienced by Henchman & Co.during 2015? Was it positive or negative?

Accepted Answer

$145 milli

Question 15

Cash equivalents generally would not include short-term investments in:

Accepted Answer

A) Commercial paper. 
B) Certificates of deposit. 
C) Held-to-maturity securities. 
D) Money market funds. 
A) Commercial paper. 
B) Certificates of deposit. 
C) Held-to-maturity securities. 
D) Money market funds.

Question 16

Interest payments on debt are classified as cash outflows from financing activities.

Accepted Answer

A) True 
 B)False

Question 17

All of the following may qualify as cash equivalents except:

Accepted Answer

A) Money market accounts. 
B) Certificates of deposit. 
C) U.S.Treasury bills. 
D) Newly issued corporate bonds. 
A) Money market accounts. 
B) Certificates of deposit. 
C) U.S.Treasury bills. 
D) Newly issued corporate bonds.

Question 18

The Murdock Corporation reported the following balance sheet data for 2016 and 2015:
   
Additional information for 2016:
(1. )Sold available-for-sale securities costing $69,500 for $74,000.
(2. )Equipment costing $20,000 with a book value of $5,000 was sold for $6,000.
(3. )Issued 6% bonds payable at face value,$200,000.
(4. )Purchased new equipment for $145,000 cash.
(5. )Paid cash dividends of $20,000.
(6. )Net income was $50,000.
Required:
Prepare a statement of cash flows for 2016 in good form using the indirect method for cash flows from operating activities.

Accepted Answer

Note: This can be so

Question 19

Rampart Inc.recorded the following transaction:
 
In the statement of cash flows,this would be reported as a:

Accepted Answer

A) $3 million outflow from investing activities. 
B) $15 million outflow from investing activities. 
C) $3 million outflow from investing activities and $12 million noncash investing and financing activity. 
D) None of these answer choices is correct. 
A) $3 million outflow from investing activities. 
B) $15 million outflow from investing activities. 
C) $3 million outflow from investing activities and $12 million noncash investing and financing activity. 
D) None of these answer choices is correct.

Question 20

Interest payments and interest received must be reported as operating cash flows
Using:

Accepted Answer

A) U.S.GAAP. 
B) IFRS. 
C) Both U.S.GAAP and IFRS. 
D) Neither U.S.GAAP nor IFRS. 
A) U.S.GAAP. 
B) IFRS. 
C) Both U.S.GAAP and IFRS. 
D) Neither U.S.GAAP nor IFRS.

The purchase of treasury stock is an investing cash outflow.

Hanson Company had the following account balances for 2016: Hanson reported net income of $90,000 for 2016.Assuming no other changes in current account balances,what is the amount of net cash provided by operating activities for 2016 reported in the statement of cash flows?

A firm reported ($ in millions)net cash inflows (outflows)as follows: operating $75,investing ($200),and financing $350.The beginning cash balance was $250.What was the ending cash balance?

During the year,cash increased by $300 million.Investing and financing activities created positive cash flow totaling $500 million.What were net cash flows from operating activities in the statement of cash flows?

If bond interest expense is $800,000,bond interest payable increased by $8,000 and bond discount decreased by $2,000,cash paid for bond interest is:

A statement of cash flows and its related disclosure note typically do not report:

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was most responsible for the negative cash flow from financing activities during 2014? What amount was paid?

In preparing its cash flow statement for the year ended December 31,2016,Red Co.gathered the following data: In its December 31,2016,statement of cash flows,what amount should Red report as net cash outflows from investing activities?

Which one of the following financial statements does not report amounts primarily on an accrual basis?

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was the net change in cash and cash equivalents experienced by Henchman & Co.during 2015? Was it positive or negative?

Cash equivalents generally would not include short-term investments in:

Interest payments on debt are classified as cash outflows from financing activities.

All of the following may qualify as cash equivalents except:

Rampart Inc.recorded the following transaction: In the statement of cash flows,this would be reported as a:

Interest payments and interest received must be reported as operating cash flows Using:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

Filters

Exam 21: The Statement of Cash Flows

The purchase of treasury stock is an investing cash outflow.

Hanson Company had the following account balances for 2016: Hanson reported net income of $90,000 for 2016.Assuming no other changes in current account balances,what is the amount of net cash provided by operating activities for 2016 reported in the statement of cash flows?

A firm reported ($ in millions)net cash inflows (outflows)as follows: operating $75,investing ($200),and financing $350.The beginning cash balance was $250.What was the ending cash balance?

During the year,cash increased by $300 million.Investing and financing activities created positive cash flow totaling $500 million.What were net cash flows from operating activities in the statement of cash flows?

If bond interest expense is $800,000,bond interest payable increased by $8,000 and bond discount decreased by $2,000,cash paid for bond interest is:

A statement of cash flows and its related disclosure note typically do not report:

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was most responsible for the negative cash flow from financing activities during 2014? What amount was paid?

In preparing its cash flow statement for the year ended December 31,2016,Red Co.gathered the following data: In its December 31,2016,statement of cash flows,what amount should Red report as net cash outflows from investing activities?

Which one of the following financial statements does not report amounts primarily on an accrual basis?

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Use the following to answer questions In its 2015 Annual Report to Shareholders,Henchman & Co.provided the following Statement of Cash Flows: -What was the net change in cash and cash equivalents experienced by Henchman & Co.during 2015? Was it positive or negative?

Cash equivalents generally would not include short-term investments in:

Interest payments on debt are classified as cash outflows from financing activities.

All of the following may qualify as cash equivalents except:

Rampart Inc.recorded the following transaction: In the statement of cash flows,this would be reported as a:

Interest payments and interest received must be reported as operating cash flows Using:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

Filters