Question 1

A work sheet is an alternative to T accounts to help in the preparation of a statement of
cash flows.

Accepted Answer

A) True 
 B)False

Question 2

When using the direct method,how is the issuance of stock for cash shown on the statement of cash flows?

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity

Question 3

A friend of yours says: "Its easy to look at the statement of cash flows and see that a company has been profitable,because positive cash flows are equal to profitability." Is your friend right? Explain.

Accepted Answer

No,he or she is not correct.It is possib

Question 4

Selected data from the financial statements of Ames Corporation for the years ended December 31,2013 and 2014 are presented below.
   REQUIRED:
What is the amount of cash and cash equivalents at the end of 2014?

Accepted Answer

The answer of Selected data from the financial statements of...

Question 5

In 2013,Daytona Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000.In its statement of cash flows for 2013,Daytona should report the following with respect to the above transactions:

Accepted Answer

A) $363,000 cash used by operating activities;$182,000 cash provided by financing activities. 
B) $181,000 net cash used by investing activities. 
C) $181,000 net cash used by investing activities;$27,000 net cash provided by operating activities. 
D) $363,000 net cash used by investing activities. 
A) $363,000 cash used by operating activities;$182,000 cash provided by financing activities. 
B) $181,000 net cash used by investing activities. 
C) $181,000 net cash used by investing activities;$27,000 net cash provided by operating activities. 
D) $363,000 net cash used by investing activities.

Question 6

Dino's Italian Grille purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand,20% were still available.What combination of amounts would affect the income statement and statement of cash flows? Statement of Cash Flow Income Statement

Accepted Answer

A) ($6,000) ($6,000) 
B) ($4,500) ($6,000) 
C) ($4,500) ($4,800) 
D) ($6,000) ($4,800) 
A) ($6,000) ($6,000) 
B) ($4,500) ($6,000) 
C) ($4,500) ($4,800) 
D) ($6,000) ($4,800)

Question 7

Which of the following statements is true?

Accepted Answer

A) Investments in commercial paper or U.S.Treasury bills must be treated as cash equivalents. 
B) Investments in stock cannot be treated as cash equivalents because they are not convertible into a known amount of cash. 
C) Investments which are convertible into a known amount of cash and mature within three months after the balance sheet date are treated as cash equivalents. 
D) Investments in money market accounts cannot be treated as cash equivalents because they do not have a specific maturity date. 
A) Investments in commercial paper or U.S.Treasury bills must be treated as cash equivalents. 
B) Investments in stock cannot be treated as cash equivalents because they are not convertible into a known amount of cash. 
C) Investments which are convertible into a known amount of cash and mature within three months after the balance sheet date are treated as cash equivalents. 
D) Investments in money market accounts cannot be treated as cash equivalents because they do not have a specific maturity date.

Question 8

Which of the following is not an operating activity?

Accepted Answer

A) Cash collections from credit customers. 
B) Cash payments for operating expenses. 
C) Cash receipts for interest earned. 
D) Cash payments for dividends to stockholders. 
A) Cash collections from credit customers. 
B) Cash payments for operating expenses. 
C) Cash receipts for interest earned. 
D) Cash payments for dividends to stockholders.

Question 9

Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question.   How much cash did Main Street pay for dividends during 2014?

Accepted Answer

A) $ 95,000 
B) $105,000 
C) $115,000 
D) $140,000 
A) $ 95,000 
B) $105,000 
C) $115,000 
D) $140,000

Question 10

The financial statement that summarizes the operating,investing,and financing activities of a business over a period of time is the ___________________________________.

Accepted Answer

statement

Question 11

Fitch Company reported an increase of $370,000 in its accounts receivable during the year 2013.The company's statement of cash flows for 2013 reported $1 million of cash received from customers.What amount of net sales must Fitch have recorded in 2013?

Accepted Answer

A) $370,000 
B) $1,000,000 
C) $1,370,000 
D) $630,000 
A) $370,000 
B) $1,000,000 
C) $1,370,000 
D) $630,000

Question 12

When using the direct method,how is the purchase of equipment for cash shown on the statement of cash flows?

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity

Question 13

Iowa Industries Inc.
Selected data from the financial statements of Iowa Industries Inc.for the years ended December 31,2014 and 2013,are presented below.Also,certain assumptions are presented.Use these data and assumptions to answer the questions that follow.
   Assumptions:
   Review the data and assumptions for Iowa Industries Inc.
REQUIRED:
(A)What was the cost of the investments purchased during 2014?
(B)What was the amount paid to retire long-term debt during 2014?

Accepted Answer

(A)$45.6
$394.4 (Investments balance - 2

Question 14

When using the direct method,how is the sale of long-term investments for cash reported on the statement of cash flows?

Accepted Answer

A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity 
A) Operating activity 
B) Investing activity 
C) Financing activity 
D) Noncash investing and financing activity

Question 15

Mallick Corp.reported the following information for 2013 and 2014.   How much cash was collected from customers during 2014?

Accepted Answer

A) $741,000 
B) $745,000 
C) $749,000 
D) $753,000 
A) $741,000 
B) $745,000 
C) $749,000 
D) $753,000

Question 16

Planet & Co.reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

Accepted Answer

A) Cash dividends were paid to stockholders during the year. 
B) Depreciation expense was recorded for the year. 
C) A bank loan was repaid during the year. 
D) Equipment was purchased for cash during the year. 
A) Cash dividends were paid to stockholders during the year. 
B) Depreciation expense was recorded for the year. 
C) A bank loan was repaid during the year. 
D) Equipment was purchased for cash during the year.

Question 17

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

Accepted Answer

A) Buying treasury stock 
B) Issuing bonds 
C) Repaying a bank loan 
D) Paying cash dividends 
A) Buying treasury stock 
B) Issuing bonds 
C) Repaying a bank loan 
D) Paying cash dividends

Question 18

Twilight Corp.began the year with a balance in its Income Taxes Payable account of $13,000.The year-end balance in the account was $18,000.The company uses the indirect method in the Operating Activities section of the statement of cash flows.Therefore,it presents the amount of income taxes paid at the bottom of the statement as a supplemental disclosure.The amount of taxes paid during the year was
$15,000.
REQUIRED:
What amount of income tax expense will appear on Twilight's income statement?

Accepted Answer

@#IMG-DLM& $13,000 + X - $15,000 = $18,000
X = $20

Question 19

Depreciation is a noncash expense that is added back to net income in determining cash provided from operating activities under the indirect method.

Accepted Answer

A) True 
 B)False

Question 20

Some companies use a work sheet approach,which functions like the T account approach,as a tool to aid in preparing the statement of cash flows.

Accepted Answer

A) True 
 B)False

A work sheet is an alternative to T accounts to help in the preparation of a statement of cash flows.

When using the direct method,how is the issuance of stock for cash shown on the statement of cash flows?

A friend of yours says: "Its easy to look at the statement of cash flows and see that a company has been profitable,because positive cash flows are equal to profitability." Is your friend right? Explain.

Selected data from the financial statements of Ames Corporation for the years ended December 31,2013 and 2014 are presented below. REQUIRED: What is the amount of cash and cash equivalents at the end of 2014?

In 2013,Daytona Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000.In its statement of cash flows for 2013,Daytona should report the following with respect to the above transactions:

Dino's Italian Grille purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand,20% were still available.What combination of amounts would affect the income statement and statement of cash flows? Statement of Cash Flow Income Statement

Which of the following statements is true?

Which of the following is not an operating activity?

Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question. How much cash did Main Street pay for dividends during 2014?

The financial statement that summarizes the operating,investing,and financing activities of a business over a period of time is the ___________________________________.

Fitch Company reported an increase of $370,000 in its accounts receivable during the year 2013.The company's statement of cash flows for 2013 reported $1 million of cash received from customers.What amount of net sales must Fitch have recorded in 2013?

When using the direct method,how is the purchase of equipment for cash shown on the statement of cash flows?

When using the direct method,how is the sale of long-term investments for cash reported on the statement of cash flows?

Mallick Corp.reported the following information for 2013 and 2014. How much cash was collected from customers during 2014?

Planet & Co.reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

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

Depreciation is a noncash expense that is added back to net income in determining cash provided from operating activities under the indirect method.

Some companies use a work sheet approach,which functions like the T account approach,as a tool to aid in preparing the statement of cash flows.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

Financial Statement Analysis

International Financial Reporting Standards

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Exam 12: The Statement of Cash Flows

A work sheet is an alternative to T accounts to help in the preparation of a statement of cash flows.

When using the direct method,how is the issuance of stock for cash shown on the statement of cash flows?

A friend of yours says: "Its easy to look at the statement of cash flows and see that a company has been profitable,because positive cash flows are equal to profitability." Is your friend right? Explain.

Selected data from the financial statements of Ames Corporation for the years ended December 31,2013 and 2014 are presented below. REQUIRED: What is the amount of cash and cash equivalents at the end of 2014?

In 2013,Daytona Company purchased equipment for $363,000 and also sold some special purpose machinery with a book value of $155,000 for $182,000.In its statement of cash flows for 2013,Daytona should report the following with respect to the above transactions:

Dino's Italian Grille purchased $6,000 of napkins for its business.One-fourth of the bill is unpaid.Upon review of the napkins still on hand,20% were still available.What combination of amounts would affect the income statement and statement of cash flows? Statement of Cash Flow Income Statement

Which of the following statements is true?

Which of the following is not an operating activity?

Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question. How much cash did Main Street pay for dividends during 2014?

The financial statement that summarizes the operating,investing,and financing activities of a business over a period of time is the ___________________________________.

Fitch Company reported an increase of $370,000 in its accounts receivable during the year 2013.The company's statement of cash flows for 2013 reported $1 million of cash received from customers.What amount of net sales must Fitch have recorded in 2013?

When using the direct method,how is the purchase of equipment for cash shown on the statement of cash flows?

When using the direct method,how is the sale of long-term investments for cash reported on the statement of cash flows?

Mallick Corp.reported the following information for 2013 and 2014. How much cash was collected from customers during 2014?

Planet & Co.reported net income for the current year.Which of the following business transactions would cause cash from operating activities to be higher than the amount of net income?

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

Depreciation is a noncash expense that is added back to net income in determining cash provided from operating activities under the indirect method.

Some companies use a work sheet approach,which functions like the T account approach,as a tool to aid in preparing the statement of cash flows.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Operating Assets: Property, plant, and Equipment, and Intangibles

Current Liabilities, contingencies, and the Time Value of Money

Long-Term Liabilities

Stockholders Equity

Financial Statement Analysis

International Financial Reporting Standards

Filters