Question 1

Which of the following is not a financing activity?

Accepted Answer

A) Issuing bonds for cash. 
B) Selling an investment in IBM stock for cash. 
C) Purchasing a company's own stock (treasury stock)for cash. 
D) Making a cash payment to repay a bank loan. 
A) Issuing bonds for cash. 
B) Selling an investment in IBM stock for cash. 
C) Purchasing a company's own stock (treasury stock)for cash. 
D) Making a cash payment to repay a bank loan.

Question 2

Which of the following statements is false?

Accepted Answer

A) Cash equivalents are included in cash on the balance sheet and on the statement of cash flows. 
B) Investments in cash equivalents and investments in stock have the same economic effect--assets increase and decrease by the same amount. 
C) An investment is a cash equivalent if it is convertible into a known amount of cash and has an original maturity of 3 months or less when purchased. 
D) Investments in stock are reported as a financing activity on the statement of cash flows. 
A) Cash equivalents are included in cash on the balance sheet and on the statement of cash flows. 
B) Investments in cash equivalents and investments in stock have the same economic effect--assets increase and decrease by the same amount. 
C) An investment is a cash equivalent if it is convertible into a known amount of cash and has an original maturity of 3 months or less when purchased. 
D) Investments in stock are reported as a financing activity on the statement of cash flows.

Question 3

To be classified as a cash equivalent,an item must be readily convertible to a known amount of cash and have an original maturity to the investor of three months or more.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?

Accepted Answer

A) This statement must classify cash flows into three categories: operating,investing,and financing activities. 
B) Cash equivalents must be combined with cash in preparing this statement. 
C) Working capital may be used as a substitute for cash in preparing this statement. 
D) The title for this statement is "Statement of Cash Flows." 
A) This statement must classify cash flows into three categories: operating,investing,and financing activities. 
B) Cash equivalents must be combined with cash in preparing this statement. 
C) Working capital may be used as a substitute for cash in preparing this statement. 
D) The title for this statement is "Statement of Cash Flows."

Question 5

The following items were reported on the balance sheets and income statement for Power Wash Company:   How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Accepted Answer

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

Question 6

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 of cash was collected from customers during 2014?
(B)What is the amount paid for purchases of merchandise during 2014?
(C)What is the amount paid for operating expenses during 2014?

Accepted Answer

(A)$426,000
$420,000 (Sales)+ $42,000 (B

Question 7

Operating,investing,and financing activities affect certain balance sheet accounts.Which of the following statements is true?

Accepted Answer

A) Operating activities primarily involve transactions which affect noncurrent assets. 
B) Investing activities primarily involve U.S.government securities and long-term productive assets. 
C) Financing activities primarily involve transactions which affect current liabilities. 
D) Different balance sheet accounts are affected depending on whether the direct or indirect method is used. 
A) Operating activities primarily involve transactions which affect noncurrent assets. 
B) Investing activities primarily involve U.S.government securities and long-term productive assets. 
C) Financing activities primarily involve transactions which affect current liabilities. 
D) Different balance sheet accounts are affected depending on whether the direct or indirect method is used.

Question 8

Cash flow per share is computed by dividing cash on the balance sheet by the number of shares outstanding.

Accepted Answer

A) True 
 B)False

Question 9

Cash flows from purchases of merchandise are classified as investing activities.

Accepted Answer

A) True 
 B)False

Question 10

________________________ activities involve long-term liabilities and stockholders' equity.

Accepted Answer

The answer of ________________________ activities involve long-term liabilities and stockholders'...

Question 11

Which of the following items is not a cash equivalent?

Accepted Answer

A) Commercial paper. 
B) A three-year Treasury note purchased two months before its maturity 
C) Money market funds . 
D) A corporate bond investment which has 5 years until maturity when they are purchased. 
A) Commercial paper. 
B) A three-year Treasury note purchased two months before its maturity 
C) Money market funds . 
D) A corporate bond investment which has 5 years until maturity when they are purchased.

Question 12

If the balance of wages payable increases during the year,then the _________________________ for the period will be greater than the actual cash wages paid in the period.

Accepted Answer

The answer of If the balance of wages payable increases...

Question 13

Under the direct method,depreciation expense is treated as an outflow in the Investing Activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 14

Under certain conditions,an investment in common stock can be considered a cash equivalent.

Accepted Answer

A) True 
 B)False

Question 15

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset (except cash)and current liability accounts.

Accepted Answer

A) True 
 B)False

Question 16

Below are the transactions for Jacksonville Company:   Based on these transactions,what is the net cash flow from financing activities?

Accepted Answer

A) $285,000 net cash provided by financing activities. 
B) $275,000 net cash used for financing activities. 
C) $0,because cash inflows equal cash outflows from financing activities. 
D) $440,000 net cash provided by financing activities. 
A) $285,000 net cash provided by financing activities. 
B) $275,000 net cash used for financing activities. 
C) $0,because cash inflows equal cash outflows from financing activities. 
D) $440,000 net cash provided by financing activities.

Question 17

___________________________________ is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures

Accepted Answer

The answer of ___________________________________ is a measure of a company's...

Question 18

Upon review of Young's Garden Center statement of cash flows,the following was noted:   From this information,the most likely explanation is that Young's is

Accepted Answer

A) using cash from operations and selling long-term assets to pay back debt. 
B) using cash from operations and borrowing to purchase long-term assets. 
C) using its profits to expand growth. 
D) using cash from investors to provide for operations 
A) using cash from operations and selling long-term assets to pay back debt. 
B) using cash from operations and borrowing to purchase long-term assets. 
C) using its profits to expand growth. 
D) using cash from investors to provide for operations

Question 19

Significant noncash transactions are not reported on the statement of cash flows,but either in a separate schedule or in a note to the financial statements.

Accepted Answer

A) True 
 B)False

Question 20

The financial statement that primarily reflects events related to the operating activities of a business,or the selling of products or providing services is the _________________________.

Accepted Answer

The answer of The financial statement that primarily reflects events...

Which of the following is not a financing activity?

Which of the following statements is false?

To be classified as a cash equivalent,an item must be readily convertible to a known amount of cash and have an original maturity to the investor of three months or more.

Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?

The following items were reported on the balance sheets and income statement for Power Wash Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Operating,investing,and financing activities affect certain balance sheet accounts.Which of the following statements is true?

Cash flow per share is computed by dividing cash on the balance sheet by the number of shares outstanding.

Cash flows from purchases of merchandise are classified as investing activities.

________________________ activities involve long-term liabilities and stockholders' equity.

Which of the following items is not a cash equivalent?

If the balance of wages payable increases during the year,then the _________________________ for the period will be greater than the actual cash wages paid in the period.

Under the direct method,depreciation expense is treated as an outflow in the Investing Activities section of the statement of cash flows.

Under certain conditions,an investment in common stock can be considered a cash equivalent.

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset (except cash)and current liability accounts.

Below are the transactions for Jacksonville Company: Based on these transactions,what is the net cash flow from financing activities?

___________________________________ is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures

Upon review of Young's Garden Center statement of cash flows,the following was noted: From this information,the most likely explanation is that Young's is

Significant noncash transactions are not reported on the statement of cash flows,but either in a separate schedule or in a note to the financial statements.

The financial statement that primarily reflects events related to the operating activities of a business,or the selling of products or providing services is the _________________________.

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

Exam 12: The Statement of Cash Flows

Which of the following is not a financing activity?

Which of the following statements is false?

To be classified as a cash equivalent,an item must be readily convertible to a known amount of cash and have an original maturity to the investor of three months or more.

Which of the following is not a current reporting requirement for a statement that reports changes in cash over a period of time?

The following items were reported on the balance sheets and income statement for Power Wash Company: How would the change in accounts receivable be reported in the operating activities section of the statement of cash flows under the indirect method?

Operating,investing,and financing activities affect certain balance sheet accounts.Which of the following statements is true?

Cash flow per share is computed by dividing cash on the balance sheet by the number of shares outstanding.

Cash flows from purchases of merchandise are classified as investing activities.

________________________ activities involve long-term liabilities and stockholders' equity.

Which of the following items is not a cash equivalent?

If the balance of wages payable increases during the year,then the _________________________ for the period will be greater than the actual cash wages paid in the period.

Under the direct method,depreciation expense is treated as an outflow in the Investing Activities section of the statement of cash flows.

Under certain conditions,an investment in common stock can be considered a cash equivalent.

Determining the cash flows from operating activities generally requires analyzing each item on the income statement as well as the current asset (except cash)and current liability accounts.

Below are the transactions for Jacksonville Company: Based on these transactions,what is the net cash flow from financing activities?

___________________________________ is a measure of a company's ability to meet its future debt obligations after paying income taxes and interest costs and making capital expenditures

Upon review of Young's Garden Center statement of cash flows,the following was noted: From this information,the most likely explanation is that Young's is

Significant noncash transactions are not reported on the statement of cash flows,but either in a separate schedule or in a note to the financial statements.

The financial statement that primarily reflects events related to the operating activities of a business,or the selling of products or providing services is the _________________________.

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