Question 1

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

Question 2

Rarely would the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

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

Accepted Answer

A)  receipts from the issuance of capital stock 
B)  payments for dividends 
C)  payments for retirement of bonds payable 
D)  receipts from the sale of investments 
A)  receipts from the issuance of capital stock 
B)  payments for dividends 
C)  payments for retirement of bonds payable 
D)  receipts from the sale of investments

Question 4

Which one of the following below would not be classified as an operating activity?

Accepted Answer

A)  interest expense 
B)  income taxes 
C)  payment of dividends 
D)  selling expenses 
A)  interest expense 
B)  income taxes 
C)  payment of dividends 
D)  selling expenses

Question 5

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in the financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

Accepted Answer

The answer of On the basis of the details of...

Question 6

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:
   Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Accepted Answer

The answer of Balances of the current asset and current...

Question 7

Kennedy, Inc. reported the following data:
   Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

Accepted Answer

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

Question 8

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 9

Sales reported on the income statement were $340,000. The accounts receivable balance declined $17,000 over the year. Determine the amount of cash received from customers.

Accepted Answer

The answer of Sales reported on the income statement were...

Question 10

The current period statement of cash flows includes the flowing:   The cash balance at the end of the period is

Accepted Answer

A)  $45,000 
B)  $635,000 
C)  $355,000 
D)  $125,000 
A)  $45,000 
B)  $635,000 
C)  $355,000 
D)  $125,000

Question 11

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

Accepted Answer

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

Question 12

Cash inflows and outflows are 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

Question 13

Cash receipts from interest and dividends are classified as

Accepted Answer

A)  financing activities 
B)  operating activities. 
C)  investing activities. 
D)  either financing or investing activities. 
A)  financing activities 
B)  operating activities. 
C)  investing activities. 
D)  either financing or investing activities.

Question 14

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

Accepted Answer

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

Question 15

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

Accepted Answer

A) True 
 B)False

Question 16

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Accepted Answer

A)  receipts from the sale of investments 
B)  amortization of premium on bonds payable 
C)  payments for cash dividends 
D)  receipts from the issuance of capital stock 
A)  receipts from the sale of investments 
B)  amortization of premium on bonds payable 
C)  payments for cash dividends 
D)  receipts from the issuance of capital stock

Question 17

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

Accepted Answer

A)  investing activities 
B)  financing activities 
C)  noncash investing and financing activities 
D)  operating activities 
A)  investing activities 
B)  financing activities 
C)  noncash investing and financing activities 
D)  operating activities

Question 18

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in of the operating activities section of the statement of cash flows (prepared by the indirect method).

Accepted Answer

A) True 
 B)False

Question 19

On the statement of cash flows, a $20,000 gain on the sale of fixed assets would be

Accepted Answer

A)  added to net income in converting the net income reported on the income statement to cash flows from operating activities 
B)  deducted from net income in converting the net income reported on the income statement to cash flows from operating activities 
C)  added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends 
D)  deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends 
A)  added to net income in converting the net income reported on the income statement to cash flows from operating activities 
B)  deducted from net income in converting the net income reported on the income statement to cash flows from operating activities 
C)  added to dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends 
D)  deducted from dividends declared in converting the dividends declared to the cash flows from financing activities related to dividends

Question 20

Based on the following, what is free cash flow?

Accepted Answer

Operations includes $2,000 for depreciat

If accounts payable have increased during a period

Rarely would the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

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

Which one of the following below would not be classified as an operating activity?

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in the financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Kennedy, Inc. reported the following data: Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Sales reported on the income statement were $340,000. The accounts receivable balance declined $17,000 over the year. Determine the amount of cash received from customers.

The current period statement of cash flows includes the flowing: The cash balance at the end of the period is

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

Cash inflows and outflows are netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

Cash receipts from interest and dividends are classified as

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in of the operating activities section of the statement of cash flows (prepared by the indirect method).

On the statement of cash flows, a $20,000 gain on the sale of fixed assets would be

Based on the following, what is free cash flow?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Financial Statement Analysis

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Exam 14: Statement of Cash Flows

If accounts payable have increased during a period

Rarely would the cash flows from operating activities, as reported on the statement of cash flows, be the same as the net income reported on the income statement.

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

Which one of the following below would not be classified as an operating activity?

On the basis of the details of the common stock account presented below, calculate the total amount to be recorded in the financing section of the statement of cash flows. Indicate whether the amount results in an increase or decrease in cash.

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows: Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

Kennedy, Inc. reported the following data: Prepare the cash flows for operating activities under the indirect method as it would appear on the statement of cash flows.

If $475,000 of bonds payable are sold at 101, $475,000 would be reported in the cash flows from financing activities section of the statement of cash flows.

Sales reported on the income statement were $340,000. The accounts receivable balance declined $17,000 over the year. Determine the amount of cash received from customers.

The current period statement of cash flows includes the flowing: The cash balance at the end of the period is

Preferred stock issued in exchange for land would be reported in the statement of cash flows in

Cash inflows and outflows are netted in the investing or financing sections of the statement of cash flows but are separately disclosed to give the reader full information.

Cash receipts from interest and dividends are classified as

A business issues 20-year bonds payable in exchange for preferred stock. This transaction would be reported on the statement of cash flows in

Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents.

On the statement of cash flows prepared by the indirect method, the cash flows from operating activities section would include

Cash paid for preferred stock dividends should be shown on the statement of cash flows under

If land costing $145,000 was sold for $205,000, the $60,000 gain on the sale would be added to net income in of the operating activities section of the statement of cash flows (prepared by the indirect method).

On the statement of cash flows, a $20,000 gain on the sale of fixed assets would be

Based on the following, what is free cash flow?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Financial Statement Analysis

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