Question 1

Cash receipts and cash payments are classified as operating, investing, or financing activities on the statement of cash flows.

Accepted Answer

A) True 
 B)False  True

Question 2

A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Accepted Answer

A) True 
 B)False  True

Question 3

Stormer Company reports the following amounts on its statement of cash flow: Net cash provided by operating activities was $28,000; net cash used in investing activities was $10,000 and net cash used in financing activities was $12,000. If the beginning cash balance is $5,000, what is the ending cash balance?

Accepted Answer

A)  $55,000. 
B)  $45,000. 
C)  $31,000. 
D)  $6,000. 
E)  $11,000. 
A)  $55,000. 
B)  $45,000. 
C)  $31,000. 
D)  $6,000. 
E)  $11,000. E

Question 4

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

Accepted Answer

A) True 
 B)False

Question 5

A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

Accepted Answer

A)  4.8%. 
B)  5.0%. 
C)  20.0%. 
D)  20.8%. 
E)  24.0%. 
A)  4.8%. 
B)  5.0%. 
C)  20.0%. 
D)  20.8%. 
E)  24.0%.

Question 6

Cash flow statements help users decide whether a company has enough cash to pay its debts.

Accepted Answer

A) True 
 B)False

Question 7

The cash flow on total assets ratio:

Accepted Answer

A)  Is the same as return on assets. 
B)  Is the same as profit margin. 
C)  Can measure a company's ability to meet its obligations. 
D)  Is highly affected by accounting principles of income recognition and measurement. 
E)  Is average net assets divided by cash flows from operations. 
A)  Is the same as return on assets. 
B)  Is the same as profit margin. 
C)  Can measure a company's ability to meet its obligations. 
D)  Is highly affected by accounting principles of income recognition and measurement. 
E)  Is average net assets divided by cash flows from operations.

Question 8

Barclays Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:   The amount of cash paid for dividends was:

Accepted Answer

A)  $52,000. 
B)  $60,000. 
C)  $58,000. 
D)  $50,000. 
E)  $42,000. 
A)  $52,000. 
B)  $60,000. 
C)  $58,000. 
D)  $50,000. 
E)  $42,000.

Question 9

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

Accepted Answer

The answer of For each of the following independent cases,...

Question 10

On a spreadsheet used to prepare the operating activities section of the statement of cash flows, depreciation expense does not require an entry in the Analysis of Changes columns because it is a noncash item.

Accepted Answer

A) True 
 B)False

Question 11

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 12

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

Accepted Answer

A)  $17,000. 
B)  $4,000. 
C)  $57,000. 
D)  $21,000. 
E)  $5,000. 
A)  $17,000. 
B)  $4,000. 
C)  $57,000. 
D)  $21,000. 
E)  $5,000.

Question 13

Match between columns
                        Premises: A method of computing and reporting that involves adjusting net income by adding and subtracting items that that do not affect cash provided (used. by operating activities.
Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed, and distributing cash to owners.
Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business.
Transactions that include purchasing and selling plant assets and investments in debt and equity securities.
A financial statement that reports the cash inflows and cash outflows for an accounting period, and classifies those cash flows as operating, investing, or financing activities.
A method of computing and reporting the net cash provided (used. by operating activities that lists the major items of operating cash receipts, and then subtracts the major items of operating cash payments.

Accepted Answer

The Answer of Financing activities and Indirect method and Statement is...

Question 14

Investing activities include: (a) the purchase and sale of long-term assets, (b) loaning money in return for notes receivable, and (c) the purchase and sale of short-term investments.

Accepted Answer

A) True 
 B)False

Question 15

The reporting of financing activities in the statement of cash flows is identical under the direct method and indirect method.

Accepted Answer

A) True 
 B)False

Question 16

In preparing a company's statement of cash flows for the most recent year, the following information is available:   Net cash flows from investing activities for the year were:

Accepted Answer

A)  $234,000 of net cash used. 
B)  $120,000 of net cash provided. 
C)  $340,000 of net cash used. 
D)  $259,000 of net cash used. 
E)  $280,000 of net cash provided. 
A)  $234,000 of net cash used. 
B)  $120,000 of net cash provided. 
C)  $340,000 of net cash used. 
D)  $259,000 of net cash used. 
E)  $280,000 of net cash provided.

Question 17

Use the following information to calculate cash received from dividends:

Accepted Answer

A)  $26,400. 
B)  $29,000. 
C)  $29,800. 
D)  $30,600. 
E)  $32,400. 
A)  $26,400. 
B)  $29,000. 
C)  $29,800. 
D)  $30,600. 
E)  $32,400.

Question 18

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Accepted Answer

A)  $585,000. 
B)  $520,000. 
C)  $480,000. 
D)  $508,000. 
E)  $512,000. 
A)  $585,000. 
B)  $520,000. 
C)  $480,000. 
D)  $508,000. 
E)  $512,000.

Question 19

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

Accepted Answer

A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Noncash activities. 
E)  This is not reported in the statement of cash flows. 
A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Noncash activities. 
E)  This is not reported in the statement of cash flows.

Question 20

The payment of cash dividends never changes the balance of retained earnings.

Accepted Answer

A) True 
 B)False

Cash receipts and cash payments are classified as operating, investing, or financing activities on the statement of cash flows.

A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

Cash flow statements help users decide whether a company has enough cash to pay its debts.

The cash flow on total assets ratio:

Barclays Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: The amount of cash paid for dividends was:

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

On a spreadsheet used to prepare the operating activities section of the statement of cash flows, depreciation expense does not require an entry in the Analysis of Changes columns because it is a noncash item.

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

Investing activities include: (a) the purchase and sale of long-term assets, (b) loaning money in return for notes receivable, and (c) the purchase and sale of short-term investments.

The reporting of financing activities in the statement of cash flows is identical under the direct method and indirect method.

In preparing a company's statement of cash flows for the most recent year, the following information is available: Net cash flows from investing activities for the year were:

Use the following information to calculate cash received from dividends:

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The payment of cash dividends never changes the balance of retained earnings.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

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Exam 12: Reporting Cash Flows

Cash receipts and cash payments are classified as operating, investing, or financing activities on the statement of cash flows.

A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Depreciation expense is not reported on a statement of cash flows prepared under the direct method.

A company had net cash flows from operations of $120,000, cash flows from financing of $330,000, total cash flows of $500,000, and average total assets of $2,500,000. The cash flow on total assets ratio equals:

Cash flow statements help users decide whether a company has enough cash to pay its debts.

The cash flow on total assets ratio:

Barclays Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: The amount of cash paid for dividends was:

For each of the following independent cases, use the information provided to calculate the missing cash inflow or cash outflow using the direct method.

On a spreadsheet used to prepare the operating activities section of the statement of cash flows, depreciation expense does not require an entry in the Analysis of Changes columns because it is a noncash item.

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

Investing activities include: (a) the purchase and sale of long-term assets, (b) loaning money in return for notes receivable, and (c) the purchase and sale of short-term investments.

The reporting of financing activities in the statement of cash flows is identical under the direct method and indirect method.

In preparing a company's statement of cash flows for the most recent year, the following information is available: Net cash flows from investing activities for the year were:

Use the following information to calculate cash received from dividends:

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise.

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The payment of cash dividends never changes the balance of retained earnings.

Managerial Accounting Concepts and Principles

Job Order Costing and Analysis

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

Filters