Question 1

Cash flows from acquiring and selling products are classified as

Accepted Answer

A) operating activities. 
B) investing activities. 
C) financing activities. 
D) distribution activities. 
A) operating activities. 
B) investing activities. 
C) financing activities. 
D) distribution activities.

Question 2

The following items were reported on the balance sheets and income statement for Infantini Corp.:   How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

Accepted Answer

A) As an addition to operating expenses. 
B) As a deduction from operating expenses. 
C) As an addition to net income. 
D) As a deduction from net income. 
A) As an addition to operating expenses. 
B) As a deduction from operating expenses. 
C) As an addition to net income. 
D) As a deduction from net income.

Question 3

Which of the following statements is true?

Accepted Answer

A) If a company reports net income on its income statement,it should report an increase in cash on its statement of cash flows. 
B) If a company reports a net loss on its income statement,it should report a decrease in cash on its statement of cash flows. 
C) If a company uses the accrual basis of accounting,it will improve its cash position if it reports net income for the same period. 
D) If a company uses the accrual basis of accounting,its cash balance can increase even if it reports a net loss. 
A) If a company reports net income on its income statement,it should report an increase in cash on its statement of cash flows. 
B) If a company reports a net loss on its income statement,it should report a decrease in cash on its statement of cash flows. 
C) If a company uses the accrual basis of accounting,it will improve its cash position if it reports net income for the same period. 
D) If a company uses the accrual basis of accounting,its cash balance can increase even if it reports a net loss.

Question 4

Cash equivalents are reported in the Operating Activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 5

Utah Corp.
Use the following selected data and additional information from the records of Utah Corp.to answer the questions that follow.
     Additional information:
   Review the data for Utah Corp.
REQUIRED:
(A)Prepare the investing activities section of a statement of cash flows for 2014 for Utah Corp.
(B)Prepare the financing activities section of a statement of cash flows for 2014 for Utah Corp.

Accepted Answer

A.Investing activiti

Question 6

Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE - NCCA - LTA
  Which of the following activities results in a cash outflow?

Accepted Answer

A) Decreases in noncash current assets (NCC
A)  
B) Decreases in long-term assets (LT
A)  
C) Increases in long-term liabilities (LTL) 
D) Decreases in retained earnings (R
E)  
A) Decreases in noncash current assets (NCC
A)  
B) Decreases in long-term assets (LT
A)  
C) Increases in long-term liabilities (LTL) 
D) Decreases in retained earnings (R
E)

Question 7

Utah Corp.
Use the following selected data and additional information from the records of Utah Corp.to answer the questions that follow.
     Additional information:
   Review the data for Utah Corp.
REQUIRED:
(A)What amount was paid to acquire equipment during 2014?
(B)What amount was recorded as depreciation expense during 2014?
(C)What amount was declared and paid for dividends during 2014?

Accepted Answer

(A)$35,000
$60,000 (Equipment - 2014)- [

Question 8

In place of _____________,a worksheet is a useful device to help in the preparation of a statement of cash flows.

Accepted Answer

The answer of In place of _____________,a worksheet is a...

Question 9

Utah Corp.
Use the following selected data and additional information from the records of Utah Corp.to answer the questions that follow.
     Additional information:
   Review the data for Utah Corp.
REQUIRED:
(A)What amount was paid to retire bonds payable during 2014?
(B)How would the transaction to retire bonds by issuing common stock be reported on the statement of cash flows for 2014 for Utah Corp.?

Accepted Answer

(A)$ -0-
Cash was not paid to retire the

Question 10

Alberto's Texas Cantina had the following results for December 31,2013 and 2014,respectively:   What was the amount of cash flows from investing activities for 2014?

Accepted Answer

A) Cash inflow of $378,000 
B) Cash outflow of $378,000 
C) Cash outflow of $7,000 
D) Cash outflow of $391,000 
A) Cash inflow of $378,000 
B) Cash outflow of $378,000 
C) Cash outflow of $7,000 
D) Cash outflow of $391,000

Question 11

The Financial Accounting Standards Board (FASB)has expressed a strong preference for the indirect method,but allows companies to use the direct method in calculating the cash flow from operating activities.

Accepted Answer

A) True 
 B)False

Question 12

Journal entry:
2012
Dec.31 Bonds Payable 600,000
Loss on Retirement of Bonds 80,000
Discount on Bonds Payable 70,000
Cash 610,000
To record retirement of bonds:
$610,000 - $530,000.

Accepted Answer

2.The $610,000 in cash paid to retire th

Question 13

Issuance of stock results in cash inflows that appear in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

The accrual-based income statement is considered to be a good indicator of current cash inflows and outflows.

Accepted Answer

A) True 
 B)False

Question 15

During 2013,the accounts receivable balance of Dawson Corp.increased.Which of the following statements is true?

Accepted Answer

A) This indicates that Dawson sold more than it collected in cash during the period. 
B) This increase is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method. 
C) This increase is added to sales recognized on the income statement to determine the cash collections from customers during the period 
D) This increase is considered only when the operating activities section of a statement of cash flows is prepared under the indirect method. 
A) This indicates that Dawson sold more than it collected in cash during the period. 
B) This increase is added to net income in the operating activities section of a statement of cash flows prepared under the indirect method. 
C) This increase is added to sales recognized on the income statement to determine the cash collections from customers during the period 
D) This increase is considered only when the operating activities section of a statement of cash flows is prepared under the indirect method.

Question 16

Occasionally,companies engage in important investing and financing activities which do not affect cash.If the amount of the transaction is significant,how should it be disclosed when financial statements are prepared?

Accepted Answer

A) In a separate section in the cash flow statement. 
B) In a supplemental schedule of all cash investing and financing activities. 
C) In a note to the financial statements or in a supplemental schedule. 
D) The transaction does not need to be disclosed. 
A) In a separate section in the cash flow statement. 
B) In a supplemental schedule of all cash investing and financing activities. 
C) In a note to the financial statements or in a supplemental schedule. 
D) The transaction does not need to be disclosed.

Question 17

__________________________ are items which are readily convertible into a known amount of cash and have an original maturity to the investor of three months or less.

Accepted Answer

The answer of __________________________ are items which are readily convertible...

Question 18

Use the selected data from the consolidated statements of cash flows for Vancouver Corporation for the years ended December 31,2014 and 2013,to answer the questions that follow.
   REQUIRED:
(A)What method does Vancouver use to calculate the net cash provided by operating activities?
(B)In 2014,why are depreciation and amortization expenses added back to net income in the operating activities section of the statement of cash flows?

Accepted Answer

(A)Indirect method
(B)These items are no

Question 19

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

Accepted Answer

A) The direct method 
B) The indirect method 
C) Both the direct and indirect methods 
D) Neither the direct method nor the indirect method 
A) The direct method 
B) The indirect method 
C) Both the direct and indirect methods 
D) Neither the direct method nor the indirect method

Question 20

The amount of cash provided from operating activities is ______________________ under both the direct and indirect methods.

Accepted Answer

The answer of The amount of cash provided from operating...

Cash flows from acquiring and selling products are classified as

The following items were reported on the balance sheets and income statement for Infantini Corp.: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

Which of the following statements is true?

Cash equivalents are reported in the Operating Activities section of the statement of cash flows.

Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE - NCCA - LTA Which of the following activities results in a cash outflow?

In place of _____________,a worksheet is a useful device to help in the preparation of a statement of cash flows.

Alberto's Texas Cantina had the following results for December 31,2013 and 2014,respectively: What was the amount of cash flows from investing activities for 2014?

The Financial Accounting Standards Board (FASB)has expressed a strong preference for the indirect method,but allows companies to use the direct method in calculating the cash flow from operating activities.

Journal entry: 2012 Dec.31 Bonds Payable 600,000 Loss on Retirement of Bonds 80,000 Discount on Bonds Payable 70,000 Cash 610,000 To record retirement of bonds: $610,000 - $530,000.

Issuance of stock results in cash inflows that appear in the financing section of the statement of cash flows.

The accrual-based income statement is considered to be a good indicator of current cash inflows and outflows.

During 2013,the accounts receivable balance of Dawson Corp.increased.Which of the following statements is true?

Occasionally,companies engage in important investing and financing activities which do not affect cash.If the amount of the transaction is significant,how should it be disclosed when financial statements are prepared?

__________________________ are items which are readily convertible into a known amount of cash and have an original maturity to the investor of three months or less.

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

The amount of cash provided from operating activities is ______________________ under both the direct and indirect methods.

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

Cash flows from acquiring and selling products are classified as

The following items were reported on the balance sheets and income statement for Infantini Corp.: How would the change in accounts payable be reported in the operating activities section of the statement of cash flows under the indirect method?

Which of the following statements is true?

Cash equivalents are reported in the Operating Activities section of the statement of cash flows.

Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE - NCCA - LTA Which of the following activities results in a cash outflow?

In place of _____________,a worksheet is a useful device to help in the preparation of a statement of cash flows.

Alberto's Texas Cantina had the following results for December 31,2013 and 2014,respectively: What was the amount of cash flows from investing activities for 2014?

The Financial Accounting Standards Board (FASB)has expressed a strong preference for the indirect method,but allows companies to use the direct method in calculating the cash flow from operating activities.

Journal entry: 2012 Dec.31 Bonds Payable 600,000 Loss on Retirement of Bonds 80,000 Discount on Bonds Payable 70,000 Cash 610,000 To record retirement of bonds: $610,000 - $530,000.

Issuance of stock results in cash inflows that appear in the financing section of the statement of cash flows.

The accrual-based income statement is considered to be a good indicator of current cash inflows and outflows.

During 2013,the accounts receivable balance of Dawson Corp.increased.Which of the following statements is true?

Occasionally,companies engage in important investing and financing activities which do not affect cash.If the amount of the transaction is significant,how should it be disclosed when financial statements are prepared?

__________________________ are items which are readily convertible into a known amount of cash and have an original maturity to the investor of three months or less.

Which method of preparing the operating activities section of a statement of cash flows adjusts net income to remove the effects of deferrals and accruals for revenues and expenses?

The amount of cash provided from operating activities is ______________________ under both the direct and indirect methods.

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