Question 1

Generally, if a short-term investment is to be classified as a cash equivalent, it must fall due within

Accepted Answer

A)  12 months from the date it was acquired. 
B)  6 months from the date it was acquired. 
C)  3 months from the date it was acquired. 
D)  1 month from the date it was acquired. 
A)  12 months from the date it was acquired. 
B)  6 months from the date it was acquired. 
C)  3 months from the date it was acquired. 
D)  1 month from the date it was acquired. C

Question 2

The starting point for analyzing cash flows from operating activities is the beginning balance of cash.

Accepted Answer

A) True 
 B)False  False

Question 3

Transactions for the acquisition or disposal of long-term assets are

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash. B

Question 4

Chattel Company sold for $5,000 equipment that originally cost $40,000 and had depreciation in the amount of $34,000 taken. What amount is reported in the Cash Flows from Operating Activities section of the Statement of Cash Flows?

Accepted Answer

A)  $7,000 
B)  $6,000 
C)  $5,000 
D)  $1,000 
A)  $7,000 
B)  $6,000 
C)  $5,000 
D)  $1,000

Question 5

On the statement of cash flows, it is necessary to reconcile the ____________________ with the net cash provided by operating activities.

Accepted Answer

The answer of On the statement of cash flows, it...

Question 6

The Other Income and Other Expense sections of an Income Statement are shown below. In preparing the Cash Flows from Operating Activities section of the statement of Cash Flows using the indirect method, indicate how each item would be handled. (Assume all line items involved cash.)

Accepted Answer

The Gain on Sale of Vehicle would be ded

Question 7

Eleemosynary Organization acquired land valued at $56,000 for 4,200 shares of its stock. Where on the Statement of Cash flows does this transaction activity appear?

Accepted Answer

A)  Operating Activities 
B)  Investing Activities 
C)  Financing Activities 
D)  Disclosures 
A)  Operating Activities 
B)  Investing Activities 
C)  Financing Activities 
D)  Disclosures

Question 8

An example of a financing activity is

Accepted Answer

A)  the sale of merchandise for cash. 
B)  the issue of stock for cash. 
C)  the sale of used equipment for cash. 
D)  the purchase of a building. 
A)  the sale of merchandise for cash. 
B)  the issue of stock for cash. 
C)  the sale of used equipment for cash. 
D)  the purchase of a building.

Question 9

A corporation received $80,000 in cash when it sold common stock and used the proceeds to pay $60,000 in bonds payable. As a result, the statement of cash flows would report

Accepted Answer

A)  $20,000 as the net cash used in financing activities. 
B)  $20,000 as the net cash provided by investing activities. 
C)  $20,000 as the net cash used in investing activities. 
D)  $20,000 as the net cash provided by financing activities. 
A)  $20,000 as the net cash used in financing activities. 
B)  $20,000 as the net cash provided by investing activities. 
C)  $20,000 as the net cash used in investing activities. 
D)  $20,000 as the net cash provided by financing activities.

Question 10

Bastion Corporation paid $15,600 on its mortgage loan. The principal portion was $5,000 and the interest was $10,600. The $5,000 constitutes what on the Statement of Cash Flows?

Accepted Answer

A)  an outflow of cash under the financing activities section 
B)  an outflow of cash under the operating activities section 
C)  an outflow of cash under the investing activities section 
D)  a disclosure of the interest paid 
A)  an outflow of cash under the financing activities section 
B)  an outflow of cash under the operating activities section 
C)  an outflow of cash under the investing activities section 
D)  a disclosure of the interest paid

Question 11

The following transactions occurred at the Lionel Corporation in 2013. Use this information to prepare Lionel's schedule of cash flows from investing activities.
A) The company sold a used truck for $4,000 in cash. The original cost of the truck was $19,000. Depreciation of $14,000 had been deducted.
B) The company purchased some new equipment for $25,000.

Accepted Answer

The answer of The following transactions occurred at the Lionel...

Question 12

Why is the Statement of Cash Flows important?

Accepted Answer

The information provided in the statemen

Question 13

On a statement of cash flows, depreciation expense is

Accepted Answer

A)  subtracted from net income in the computation of the net cash provided by operating activities. 
B)  added to net income in the computation of the net cash provided by operating activities. 
C)  treated as a cash outflow in the computation of the net cash used in investing activities. 
D)  treated as a cash inflow in the computation of the net cash used in investing activities. 
A)  subtracted from net income in the computation of the net cash provided by operating activities. 
B)  added to net income in the computation of the net cash provided by operating activities. 
C)  treated as a cash outflow in the computation of the net cash used in investing activities. 
D)  treated as a cash inflow in the computation of the net cash used in investing activities.

Question 14

The Financial Accounting Standards Board prefers the indirect method of preparing the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 15

A list of sources and uses of cash are given below. Indicate on the line provided whether each is an operating, investing, or financing activity.
________ (a) purchase of land
________ (b) repayment of bond indebtedness
________ (c) sale of merchandise
________ (d) pay salaries and wages
________ (e) pay interest expense
________ (f) sale of office equipment
________ (g) dividends paid
________ (h) resale of Treasury Stock
________ (i) borrowing through a note payable
________ (j) dividend income

Accepted Answer

(a) investing, (b) financing,

Question 16

The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

Accepted Answer

A)  $500,000. 
B)  $300,000. 
C)  $275,000. 
D)  $250,000. 
A)  $500,000. 
B)  $300,000. 
C)  $275,000. 
D)  $250,000.

Question 17

Doff Manufacturing Co. sold equipment that cost $12,000 for $3,000. Depreciation of $10,000 had been taken on the equipment. How is the Cash Flows from Operating Activities affected?

Accepted Answer

A)  The loss of $1,000 is added to Net Income 
B)  The gain of $1,000 is added to Net Income 
C)  The gain of $1,000 is deducted from Net Income 
D)  The loss of $1,000 is deducted from Net Income 
A)  The loss of $1,000 is added to Net Income 
B)  The gain of $1,000 is added to Net Income 
C)  The gain of $1,000 is deducted from Net Income 
D)  The loss of $1,000 is deducted from Net Income

Question 18

Transactions that provide cash to the business to carry on its activities are

Accepted Answer

A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash. 
A)  operating activities. 
B)  investing activities. 
C)  financing activities. 
D)  outflows or uses of cash.

Question 19

The Natural Company's Statement of Cash Flows would report Cash Flows from Operating Activities totaling:

Accepted Answer

A)  $252,000. 
B)  $286,000. 
C)  $368,000. 
D)  $470,000. 
A)  $252,000. 
B)  $286,000. 
C)  $368,000. 
D)  $470,000.

Question 20

Usually, there is a difference between the net income reported on the income statement and the net cash from operating activities shown on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Generally, if a short-term investment is to be classified as a cash equivalent, it must fall due within

The starting point for analyzing cash flows from operating activities is the beginning balance of cash.

Transactions for the acquisition or disposal of long-term assets are

Chattel Company sold for $5,000 equipment that originally cost $40,000 and had depreciation in the amount of $34,000 taken. What amount is reported in the Cash Flows from Operating Activities section of the Statement of Cash Flows?

On the statement of cash flows, it is necessary to reconcile the ____________________ with the net cash provided by operating activities.

The Other Income and Other Expense sections of an Income Statement are shown below. In preparing the Cash Flows from Operating Activities section of the statement of Cash Flows using the indirect method, indicate how each item would be handled. (Assume all line items involved cash.)

Eleemosynary Organization acquired land valued at $56,000 for 4,200 shares of its stock. Where on the Statement of Cash flows does this transaction activity appear?

An example of a financing activity is

A corporation received $80,000 in cash when it sold common stock and used the proceeds to pay $60,000 in bonds payable. As a result, the statement of cash flows would report

Bastion Corporation paid $15,600 on its mortgage loan. The principal portion was $5,000 and the interest was $10,600. The $5,000 constitutes what on the Statement of Cash Flows?

Why is the Statement of Cash Flows important?

On a statement of cash flows, depreciation expense is

The Financial Accounting Standards Board prefers the indirect method of preparing the statement of cash flows.

The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

Doff Manufacturing Co. sold equipment that cost $12,000 for $3,000. Depreciation of $10,000 had been taken on the equipment. How is the Cash Flows from Operating Activities affected?

Transactions that provide cash to the business to carry on its activities are

The Natural Company's Statement of Cash Flows would report Cash Flows from Operating Activities totaling:

Usually, there is a difference between the net income reported on the income statement and the net cash from operating activities shown on the statement of cash flows.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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Exam 24: The Statement of Cash Flows

Generally, if a short-term investment is to be classified as a cash equivalent, it must fall due within

The starting point for analyzing cash flows from operating activities is the beginning balance of cash.

Transactions for the acquisition or disposal of long-term assets are

Chattel Company sold for $5,000 equipment that originally cost $40,000 and had depreciation in the amount of $34,000 taken. What amount is reported in the Cash Flows from Operating Activities section of the Statement of Cash Flows?

On the statement of cash flows, it is necessary to reconcile the ____________________ with the net cash provided by operating activities.

The Other Income and Other Expense sections of an Income Statement are shown below. In preparing the Cash Flows from Operating Activities section of the statement of Cash Flows using the indirect method, indicate how each item would be handled. (Assume all line items involved cash.)

Eleemosynary Organization acquired land valued at $56,000 for 4,200 shares of its stock. Where on the Statement of Cash flows does this transaction activity appear?

An example of a financing activity is

A corporation received $80,000 in cash when it sold common stock and used the proceeds to pay $60,000 in bonds payable. As a result, the statement of cash flows would report

Bastion Corporation paid $15,600 on its mortgage loan. The principal portion was $5,000 and the interest was $10,600. The $5,000 constitutes what on the Statement of Cash Flows?

Why is the Statement of Cash Flows important?

On a statement of cash flows, depreciation expense is

The Financial Accounting Standards Board prefers the indirect method of preparing the statement of cash flows.

The Natural Company's Statement of Cash Flows would report Cash Flows from Financing Activities totaling:

Doff Manufacturing Co. sold equipment that cost $12,000 for $3,000. Depreciation of $10,000 had been taken on the equipment. How is the Cash Flows from Operating Activities affected?

Transactions that provide cash to the business to carry on its activities are

The Natural Company's Statement of Cash Flows would report Cash Flows from Operating Activities totaling:

Usually, there is a difference between the net income reported on the income statement and the net cash from operating activities shown on the statement of cash flows.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Job Order Cost Accounting

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters