Question 1

A main purpose of the statement of cash flows is to report all the major cash ________ and cash ________.

Accepted Answer

receipts (or inflows

Question 2

The statement of cash flows cannot help address questions such as:

Accepted Answer

A)  How is the increase in investments financed? 
B)  What is the source of cash for new plant assets? 
C)  How much cash is generated from or used in operations? 
D)  How much of the company's revenues have been retained as profit? 
E)  Why is cash flow from operations different from income? 
A)  How is the increase in investments financed? 
B)  What is the source of cash for new plant assets? 
C)  How much cash is generated from or used in operations? 
D)  How much of the company's revenues have been retained as profit? 
E)  Why is cash flow from operations different from income?

Question 3

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Accepted Answer

A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Schedule of noncash investing or financing activity. 
E)  This is not reported on the statement of cash flows. 
A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Schedule of noncash investing or financing activity. 
E)  This is not reported on the statement of cash flows.

Question 4

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:

Accepted Answer

A)  Financing activities. 
B)  Investing activities. 
C)  Operating activities. 
D)  Direct activities. 
E)  Indirect activities. 
A)  Financing activities. 
B)  Investing activities. 
C)  Operating activities. 
D)  Direct activities. 
E)  Indirect activities.

Question 5

For each of the following items, indicate whether it would be classified as an (O) operating activity, an (I) investing activity, a (F) financing activity, or a significant (N) noncash financing and investing activity.
________ (1) Received interest from investments in trading securities.
________ (2) Collected accounts receivable from customers.
________ (3) Issued bonds payable for cash.
________ (4) Paid wages to employees.
________ (5) Issued stock for cash.
________ (6) Sold equipment for cash.
________ (7) Purchased land in exchange for a note payable.
________ (8) Paid cash dividends.
________ (9) Received dividends from stock investments.
________ (10) Purchases of land for cash.

Accepted Answer

1. O; 2. O; 3. F; 4.

Question 6

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

Accepted Answer

A) True 
 B)False

Question 7

In preparing a company's statement of cash flows for the most recent year, Jeffers Corp. reported the following information:   Net cash flows from financing activities for the year were:

Accepted Answer

A)  $230,000 of net cash used. 
B)  $230,000 of net cash provided. 
C)  $108,000 of net cash used. 
D)  $138,000 of net cash used. 
E)  $138,000 of net cash provided. 
A)  $230,000 of net cash used. 
B)  $230,000 of net cash provided. 
C)  $108,000 of net cash used. 
D)  $138,000 of net cash used. 
E)  $138,000 of net cash provided.

Question 8

Explain the purpose and format of the statement of cash flows. Also describe its relevance to decision makers.

Accepted Answer

The purpose of the statement of cash flo

Question 9

Use the following information to calculate the net cash provided or used by financing activities for the Hulu Corporation:
(a) Net income, $10,000
(b) Sold common stock for $40,000 cash
(c) Paid cash dividend of $13,000
(d) Paid bond payable, $28,000
(e) Purchased equipment for $12,000 cash

Accepted Answer

The answer of Use the following information to calculate the...

Question 10

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Accepted Answer

A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Schedule of noncash investing or financing activity. 
E)  This is not reported on the statement of cash flows. 
A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Schedule of noncash investing or financing activity. 
E)  This is not reported on the statement of cash flows.

Question 11

When the operating activities section of the statement of cash flows is reported using the direct method:

Accepted Answer

A)  Net income is adjusted for changes in noncurrent assets and noncurrent liabilities. 
B)  Operating cash receipts minus operating cash payments equals net cash provided (used by) operating activities. 
C)  Footnotes to the financial statements disclose the difference between net income and the cash provided or used by financing activities. 
D)  The income statement is prepared under the cash basis of accounting. 
E)  Noncash investing and financing activities is included in the statement of cash flows. 
A)  Net income is adjusted for changes in noncurrent assets and noncurrent liabilities. 
B)  Operating cash receipts minus operating cash payments equals net cash provided (used by) operating activities. 
C)  Footnotes to the financial statements disclose the difference between net income and the cash provided or used by financing activities. 
D)  The income statement is prepared under the cash basis of accounting. 
E)  Noncash investing and financing activities is included in the statement of cash flows.

Question 12

In preparing a company's statement of cash flows using the indirect method, the following information is available:   Net cash provided by operating activities was:

Accepted Answer

A)  $34,000. 
B)  $60,000. 
C)  $70,000. 
D)  $80,000. 
E)  $52,000. 
A)  $34,000. 
B)  $60,000. 
C)  $70,000. 
D)  $80,000. 
E)  $52,000.

Question 13

In preparing a company's statement of cash flows for the year just ended, the following information is available:   Net cash flows from financing activities for the year were:

Accepted Answer

A)  $147,000 of net cash used. 
B)  $26,000 of net cash used. 
C)  $347,000 of net cash used. 
D)  $51,000 of net cash used. 
E)  $340,000 of net cash used. 
A)  $147,000 of net cash used. 
B)  $26,000 of net cash used. 
C)  $347,000 of net cash used. 
D)  $51,000 of net cash used. 
E)  $340,000 of net cash used.

Question 14

Use the following information to calculate cash received from dividends:

Accepted Answer

A)  $63,500. 
B)  $63,000. 
C)  $64,000. 
D)  $67,100. 
E)  $60,400. 
A)  $63,500. 
B)  $63,000. 
C)  $64,000. 
D)  $67,100. 
E)  $60,400.

Question 15

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

Accepted Answer

A) True 
 B)False

Question 16

Use the information provided to calculate the missing cash received for interest for the period.

Accepted Answer

The answer of Use the information provided to calculate the...

Question 17

The following transactions and events occurred during the year. Assuming that this company uses the indirect method to report cash provided by operating activities, indicate where each item would appear on its statement of cash flows by placing an x in the appropriate column.
Statement of Cash Flows (Indirect Method)

Accepted Answer

Statement

Question 18

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

Accepted Answer

The indirect method for preparing the op

Question 19

A company reported operating cash flows in Year 1 of $33,100 and $26,220 in Year 2. Its average total assets in Year 1 were $262,000 and $313,000 in Year 2. Calculate the cash flow on total assets ratio for both years. Comment on the results.

Accepted Answer

@#IMG-DLM& Comment: The company had a decrease in

Question 20

Use the information provided to calculate the missing cash paid for merchandise for the period.

Accepted Answer

The answer of Use the information provided to calculate the...

A main purpose of the statement of cash flows is to report all the major cash and cash .

The statement of cash flows cannot help address questions such as:

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

In preparing a company's statement of cash flows for the most recent year, Jeffers Corp. reported the following information: Net cash flows from financing activities for the year were:

Explain the purpose and format of the statement of cash flows. Also describe its relevance to decision makers.

Use the following information to calculate the net cash provided or used by financing activities for the Hulu Corporation: (a) Net income, $10,000 (b) Sold common stock for $40,000 cash (c) Paid cash dividend of $13,000 (d) Paid bond payable, $28,000 (e) Purchased equipment for $12,000 cash

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

When the operating activities section of the statement of cash flows is reported using the direct method:

In preparing a company's statement of cash flows using the indirect method, the following information is available: Net cash provided by operating activities was:

In preparing a company's statement of cash flows for the year just ended, the following information is available: Net cash flows from financing activities for the year were:

Use the following information to calculate cash received from dividends:

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

Use the information provided to calculate the missing cash received for interest for the period.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

A company reported operating cash flows in Year 1 of $33,100 and $26,220 in Year 2. Its average total assets in Year 1 were $262,000 and $313,000 in Year 2. Calculate the cash flow on total assets ratio for both years. Comment on the results.

Use the information provided to calculate the missing cash paid for merchandise for the period.

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

A main purpose of the statement of cash flows is to report all the major cash ________ and cash ________.

The statement of cash flows cannot help address questions such as:

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers, including expenditures related to administering the business, are classified as:

The cash flows from operating activities section of an indirect method of cash flows begins with net income or loss.

In preparing a company's statement of cash flows for the most recent year, Jeffers Corp. reported the following information: Net cash flows from financing activities for the year were:

Explain the purpose and format of the statement of cash flows. Also describe its relevance to decision makers.

Use the following information to calculate the net cash provided or used by financing activities for the Hulu Corporation: (a) Net income, $10,000 (b) Sold common stock for $40,000 cash (c) Paid cash dividend of $13,000 (d) Paid bond payable, $28,000 (e) Purchased equipment for $12,000 cash

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

When the operating activities section of the statement of cash flows is reported using the direct method:

In preparing a company's statement of cash flows using the indirect method, the following information is available: Net cash provided by operating activities was:

In preparing a company's statement of cash flows for the year just ended, the following information is available: Net cash flows from financing activities for the year were:

Use the following information to calculate cash received from dividends:

The cash flow on total assets ratio is computed by dividing average total assets by operating income.

Use the information provided to calculate the missing cash received for interest for the period.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

A company reported operating cash flows in Year 1 of $33,100 and $26,220 in Year 2. Its average total assets in Year 1 were $262,000 and $313,000 in Year 2. Calculate the cash flow on total assets ratio for both years. Comment on the results.

Use the information provided to calculate the missing cash paid for merchandise for the period.

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

A main purpose of the statement of cash flows is to report all the major cash and cash .