Question 1

Financing activities include receiving cash from issuing debt and paying cash dividends to shareholders.

Accepted Answer

A) True 
 B)False

Question 2

________ activities include the cash effects of transactions and events that determine net income.

Accepted Answer

The answer of ________ activities include the cash effects of...

Question 3

Which of the following items is reported on the statement of cash flows under financing activities?

Accepted Answer

A)  Purchase of equipment for cash. 
B)  Payment of a cash dividend. 
C)  Payment for merchandise. 
D)  Payment of a stock dividend. 
E)  Stock split. 
A)  Purchase of equipment for cash. 
B)  Payment of a cash dividend. 
C)  Payment for merchandise. 
D)  Payment of a stock dividend. 
E)  Stock split.

Question 4

The statement of cash flows reports:

Accepted Answer

A)  Assets, liabilities, and equity. 
B)  Revenues, gains, expenses, and losses. 
C)  Cash inflows and cash outflows for an accounting period. 
D)  Equity, net income, and dividends. 
E)  Changes in equity. 
A)  Assets, liabilities, and equity. 
B)  Revenues, gains, expenses, and losses. 
C)  Cash inflows and cash outflows for an accounting period. 
D)  Equity, net income, and dividends. 
E)  Changes in equity.

Question 5

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ________ section.

Accepted Answer

operating

Question 6

When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

Accepted Answer

A) True 
 B)False

Question 7

Which one of the following is an example of cash flows from operating activities?

Accepted Answer

A)  Proceeds from collecting the principal amounts of loans. 
B)  Repayment of principals on loans. 
C)  Proceeds from the issuance of bonds and notes payable. 
D)  Payments to acquire equity securities of other companies. 
E)  Receipts of cash from sales. 
A)  Proceeds from collecting the principal amounts of loans. 
B)  Repayment of principals on loans. 
C)  Proceeds from the issuance of bonds and notes payable. 
D)  Payments to acquire equity securities of other companies. 
E)  Receipts of cash from sales.

Question 8

Companies can use either the direct or indirect method to prepare the operating section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 9

Cash flows are essentially the same as net income because they are both measured using accrual accounting principles.

Accepted Answer

A) True 
 B)False

Question 10

Use the information provided below to calculate the cash paid for interest for the period.

Accepted Answer

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

Question 11

Use the following financial statements and additional information to (1) prepare a statement of cash flows for the year ended December 31, Year 2 using the indirect method, and (2) compute the company's cash flow on total assets ratio for Year 2.

Additional Information
a. A $20,000 note payable is retired at its carrying value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $120,000 cash.
d. Received cash for the sale of equipment that had cost $85,000, yielding a gain of $4,700.
e. Prepaid expenses relate to Other Expenses on the income statement.
f. All purchases and sales of merchandise inventory are on credit.

Accepted Answer

(1)
 @#IMG-DLM& * Accumulated depreciation of equi

Question 12

Victoria reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of the current year. Net cash flows from operations were $2,204 million. Calculate the cash flow on total assets ratio.

Accepted Answer

Cash Flow on Total Assets = Ca

Question 13

The direct method separately lists each major item of operating cash receipts and cash payments.

Accepted Answer

A) True 
 B)False

Question 14

When preparing the operating activities section of the statement of cash flows using the direct method, revenues and gains with no cash inflows are added back to net income.

Accepted Answer

A) True 
 B)False

Question 15

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

Accepted Answer

A) True 
 B)False

Question 16

When preparing a statement of cash flows using the indirect method, which of the following is correct?

Accepted Answer

A)  Proceeds from the sale of equipment should be added to net income in the operating activities section. 
B)  A loss on the sale of land should be added to net income in the operating activities section. 
C)  The declaration of a cash dividend should be a use of cash in the financing activities section. 
D)  The issuance of a stock dividend should be a use of cash in the financing activities section. 
E)  The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section. 
A)  Proceeds from the sale of equipment should be added to net income in the operating activities section. 
B)  A loss on the sale of land should be added to net income in the operating activities section. 
C)  The declaration of a cash dividend should be a use of cash in the financing activities section. 
D)  The issuance of a stock dividend should be a use of cash in the financing activities section. 
E)  The purchase of land and a building by issuing a long-term note payable should be a source of cash in the financing activities section.

Question 17

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

Accepted Answer

A)  $69,900. 
B)  $108,900. 
C)  $93,900. 
D)  $85,700. 
E)  $81,600. 
A)  $69,900. 
B)  $108,900. 
C)  $93,900. 
D)  $85,700. 
E)  $81,600.

Question 18

When preparing the operating section of the statement of cash flows using the indirect method, noncash expenses are ________ net income.

Accepted Answer

The answer of When preparing the operating section of the...

Question 19

Managers review the statement of cash flows before making business decisions.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

Financing activities include receiving cash from issuing debt and paying cash dividends to shareholders.

________ activities include the cash effects of transactions and events that determine net income.

Which of the following items is reported on the statement of cash flows under financing activities?

The statement of cash flows reports:

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ________ section.

When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

Which one of the following is an example of cash flows from operating activities?

Companies can use either the direct or indirect method to prepare the operating section of the statement of cash flows.

Cash flows are essentially the same as net income because they are both measured using accrual accounting principles.

Use the information provided below to calculate the cash paid for interest for the period.

Victoria reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of the current year. Net cash flows from operations were $2,204 million. Calculate the cash flow on total assets ratio.

The direct method separately lists each major item of operating cash receipts and cash payments.

When preparing the operating activities section of the statement of cash flows using the direct method, revenues and gains with no cash inflows are added back to net income.

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

When preparing a statement of cash flows using the indirect method, which of the following is correct?

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

When preparing the operating section of the statement of cash flows using the indirect method, noncash expenses are ________ net income.

Managers review the statement of cash flows before making business decisions.

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

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

Exam 12: Reporting Cash Flows

Financing activities include receiving cash from issuing debt and paying cash dividends to shareholders.

________ activities include the cash effects of transactions and events that determine net income.

Which of the following items is reported on the statement of cash flows under financing activities?

The statement of cash flows reports:

Probably the most important section of the statement of cash flows in analyzing the financial performance of a company's ongoing business is the ________ section.

When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

Which one of the following is an example of cash flows from operating activities?

Companies can use either the direct or indirect method to prepare the operating section of the statement of cash flows.

Cash flows are essentially the same as net income because they are both measured using accrual accounting principles.

Use the information provided below to calculate the cash paid for interest for the period.

Victoria reported assets of $13,362 million at January 1 and $13,369 million as of December 31 of the current year. Net cash flows from operations were $2,204 million. Calculate the cash flow on total assets ratio.

The direct method separately lists each major item of operating cash receipts and cash payments.

When preparing the operating activities section of the statement of cash flows using the direct method, revenues and gains with no cash inflows are added back to net income.

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

When preparing a statement of cash flows using the indirect method, which of the following is correct?

Use the following information and the indirect method to calculate the net cash provided or used by operating activities:

When preparing the operating section of the statement of cash flows using the indirect method, noncash expenses are ________ net income.

Managers review the statement of cash flows before making business decisions.

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

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