Question 1

Large cash flows from operations are more important to financial statement analysts over the long term than cash flows from financing or investing.

Accepted Answer

A) True 
 B)False

Question 2

Both FASB and IASB require the cash flow statement to be organized in three categories,operating activities,investing activities,and financing activities.

Accepted Answer

A) True 
 B)False

Question 3

Format of a cash flow statement-direct method
Arrange the following information to complete the statement of cash flows for Olympia,Inc.Place parentheses around those dollar amounts representing cash outlays.

Accepted Answer

The answer of Format of a cash flow statement-direct method
Arrange...

Question 4

Companies that show profits on the income statement will always show positive cash flows from operating activities.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following sets of data is sufficient to compute the amount of cash paid for merchandise?

Accepted Answer

A) Cost of goods sold,increase or decrease in inventory,increase or decrease in accounts payable. 
B) Increase or decrease in cash,increase or decrease in inventory,increase or decrease in accounts payable. 
C) Cost of goods sold,increase or decrease in accounts payable. 
D) Cost of goods sold. 
A) Cost of goods sold,increase or decrease in inventory,increase or decrease in accounts payable. 
B) Increase or decrease in cash,increase or decrease in inventory,increase or decrease in accounts payable. 
C) Cost of goods sold,increase or decrease in accounts payable. 
D) Cost of goods sold.

Question 6

Which of the following is a financing activity?

Accepted Answer

A) Payment of interest. 
B) Payment of dividends. 
C) Making sales on account. 
D) Paying off accounts payable. 
A) Payment of interest. 
B) Payment of dividends. 
C) Making sales on account. 
D) Paying off accounts payable.

Question 7

The 2015 statement of cash flows of Dickens Corporation shows $500,000 cash paid for dividends.If dividends in Dickens' statement of retained earnings are reported at $550,000 then:

Accepted Answer

A) Dickens' dividends payable account must amount to $50,000 at the end of 2015. 
B) Dickens' Cash account must have increased by $50,000 in 2015. 
C) Dickens' dividends payable account must have increased by $50,000 in 2015. 
D) Dickens' dividends payable account must have decreased by $50,000 in 2015. 
A) Dickens' dividends payable account must amount to $50,000 at the end of 2015. 
B) Dickens' Cash account must have increased by $50,000 in 2015. 
C) Dickens' dividends payable account must have increased by $50,000 in 2015. 
D) Dickens' dividends payable account must have decreased by $50,000 in 2015.

Question 8

In a statement of cash flows,the term cash includes:

Accepted Answer

A) Only money on deposit in bank accounts. 
B) Only bank accounts and cash on hand. 
C) Bank accounts,cash on hand,and cash equivalents. 
D) Bank accounts,cash on hand,cash equivalents,and marketable securities classified as current assets. 
A) Only money on deposit in bank accounts. 
B) Only bank accounts and cash on hand. 
C) Bank accounts,cash on hand,and cash equivalents. 
D) Bank accounts,cash on hand,cash equivalents,and marketable securities classified as current assets.

Question 9

The "worksheet approach" to preparing a statement of cash flows involves analyzing changes in non-cash balance sheet accounts.

Accepted Answer

A) True 
 B)False

Question 10

When equipment is sold at a loss:

Accepted Answer

A) The net proceeds are shown in the investing section. 
B) The book value of the asset is shown in the investing section. 
C) The book value of the asset is shown in the investing section,and the loss is shown in the operating section. 
D) The net proceeds are shown in the financing section. 
A) The net proceeds are shown in the investing section. 
B) The book value of the asset is shown in the investing section. 
C) The book value of the asset is shown in the investing section,and the loss is shown in the operating section. 
D) The net proceeds are shown in the financing section.

Large cash flows from operations are more important to financial statement analysts over the long term than cash flows from financing or investing.

Both FASB and IASB require the cash flow statement to be organized in three categories,operating activities,investing activities,and financing activities.

Format of a cash flow statement-direct method Arrange the following information to complete the statement of cash flows for Olympia,Inc.Place parentheses around those dollar amounts representing cash outlays.

Companies that show profits on the income statement will always show positive cash flows from operating activities.

Which of the following sets of data is sufficient to compute the amount of cash paid for merchandise?

Which of the following is a financing activity?

The 2015 statement of cash flows of Dickens Corporation shows $500,000 cash paid for dividends.If dividends in Dickens' statement of retained earnings are reported at $550,000 then:

In a statement of cash flows,the term cash includes:

The "worksheet approach" to preparing a statement of cash flows involves analyzing changes in non-cash balance sheet accounts.

When equipment is sold at a loss:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters

Exam 13: Statement of Cash Flows

Large cash flows from operations are more important to financial statement analysts over the long term than cash flows from financing or investing.

Both FASB and IASB require the cash flow statement to be organized in three categories,operating activities,investing activities,and financing activities.

Format of a cash flow statement-direct method Arrange the following information to complete the statement of cash flows for Olympia,Inc.Place parentheses around those dollar amounts representing cash outlays.

Companies that show profits on the income statement will always show positive cash flows from operating activities.

Which of the following sets of data is sufficient to compute the amount of cash paid for merchandise?

Which of the following is a financing activity?

The 2015 statement of cash flows of Dickens Corporation shows $500,000 cash paid for dividends.If dividends in Dickens' statement of retained earnings are reported at $550,000 then:

In a statement of cash flows,the term cash includes:

The "worksheet approach" to preparing a statement of cash flows involves analyzing changes in non-cash balance sheet accounts.

When equipment is sold at a loss:

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Financial Statement Analysis

Global Business and Accounting

Management Accounting: a Business Partner

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

Forms of Business Organization

The Time Value of Money: Future Amounts and Present Values

Filters