Question 1

Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.

Accepted Answer

A) True 
 B)False

Question 2

For each of the following separate 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 separate cases,...

Question 3

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

Accepted Answer

A)  $50,000. 
B)  $5,000. 
C)  $45,000. 
D)  $0. 
E)  $35,000. 
A)  $50,000. 
B)  $5,000. 
C)  $45,000. 
D)  $0. 
E)  $35,000.

Question 4

The following information is available for the Brookstone Company:

Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old machinery with an original cost of $45,060 was sold for $2,520 cash.
(3) New machinery was purchased for $81,060 cash.
(4) Cash dividends of $40,320 were paid.
(5) Additional shares of stock were issued for cash.
Prepare a complete statement of cash flows for Year 2 using the indirect method.

Accepted Answer

@#IMG-DLM& (a) Received from sales of lo

Question 5

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:

Accepted Answer

A)  $(3,000). 
B)  $(60,000). 
C)  $(57,000). 
D)  $7,000. 
E)  $(7,000). 
A)  $(3,000). 
B)  $(60,000). 
C)  $(57,000). 
D)  $7,000. 
E)  $(7,000).

Question 6

The statement of cash flows reports all but which of the following:

Accepted Answer

A)  Cash flows from operating activities. 
B)  Cash flows from financing activities. 
C)  Cash flows from investing activities. 
D)  Significant noncash financing and investing activities. 
E)  The financial position of the company at the end of the accounting period. 
A)  Cash flows from operating activities. 
B)  Cash flows from financing activities. 
C)  Cash flows from investing activities. 
D)  Significant noncash financing and investing activities. 
E)  The financial position of the company at the end of the accounting period.

Question 7

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

Accepted Answer

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

Question 8

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

Accepted Answer

Noncash investing and financing activiti

Question 9

When using a spreadsheet to prepare the statement of cash flows, a decrease 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 10

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating liabilities are added back to net income.

Accepted Answer

A) True 
 B)False

Question 11

For each of the following items, indicate whether it would be classified as either an (O) operating activity, an (I) investing activity, a (F) financial activity, or a significant (N) noncash financing and investing activity.
________ (1) Cash sales of merchandise.
________ (2) Sale of land for cash.
________ (3) Signed a note payable in exchange for cash.
________ (4) Purchased supplies for cash.
________ (5) Paid cash to settle an account payable.
________ (6) Purchased a warehouse in exchange for shares of its stock.
________ (7) Paid interest on a note payable.
________ (8) Reissued treasury stock.
________ (9) Purchased equipment for cash.
________ (10) Purchased equipment in exchange for a 6-month note payable.

Accepted Answer

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

Question 12

Use the following information to calculate cash paid for wages and salaries: $\begin{array}{lr}
\text { Salaries expense } & 168,000 \
\text { Salaries payable, January } 1 & 6,400 \
\text { Salaries payable, December } 31 & 10,600
\end{array}$

Accepted Answer

A)  $157,400. 
B)  $163,800. 
C)  $168,000. 
D)  $172,200. 
E)  $174,400. 
A)  $157,400. 
B)  $163,800. 
C)  $168,000. 
D)  $172,200. 
E)  $174,400.

Question 13

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are added back to net income.

Accepted Answer

A) True 
 B)False

Question 14

Citi 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)  $44,000. 
B)  $40,000. 
C)  $57,000. 
D)  $53,000. 
E)  $36,000. 
A)  $44,000. 
B)  $40,000. 
C)  $57,000. 
D)  $53,000. 
E)  $36,000.

Question 15

Sega Co. reported net cash provided by operating activities of $142.7 million and average total assets of $1,762.5 million at the end of the year. Calculate the cash flow on total assets ratio.

Accepted Answer

Cash Flow on Total Assets = Op

Question 16

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are subtracted from net income.

Accepted Answer

A) True 
 B)False

Question 17

Investing activities do not include the:

Accepted Answer

A)  Purchase of plant assets. 
B)  Loaning of money in exchange for notes receivable. 
C)  Issuance of common stock. 
D)  Sale of plant assets. 
E)  Sale of short-term investments other than cash equivalents. 
A)  Purchase of plant assets. 
B)  Loaning of money in exchange for notes receivable. 
C)  Issuance of common stock. 
D)  Sale of plant assets. 
E)  Sale of short-term investments other than cash equivalents.

Question 18

The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:   What is the ending balance for retained earnings?

Accepted Answer

A)  $264,000. 
B)  $13,000. 
C)  $243,000. 
D)  $197,000. 
E)  $105,000. 
A)  $264,000. 
B)  $13,000. 
C)  $243,000. 
D)  $197,000. 
E)  $105,000.

Question 19

Rowan, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method.
   Additional information:

Accepted Answer

The answer of Rowan, Inc.'s, income statement is shown below....

Question 20

Based on the following information provided about a company's operations, calculate its cost of goods purchased and its cash paid for merchandise.

Accepted Answer

The answer of Based on the following information provided about...

Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.

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

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:

The statement of cash flows reports all but which of the following:

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

When using a spreadsheet to prepare the statement of cash flows, a decrease 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.

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating liabilities are added back to net income.

Use the following information to calculate cash paid for wages and salaries: Salaries expense 168,000 Salaries payable, January 1 6,400 Salaries payable, December 31 10,600

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are added back to net income.

Citi 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:

Sega Co. reported net cash provided by operating activities of $142.7 million and average total assets of $1,762.5 million at the end of the year. Calculate the cash flow on total assets ratio.

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are subtracted from net income.

Investing activities do not include the:

The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: What is the ending balance for retained earnings?

Rowan, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method. Additional information:

Based on the following information provided about a company's operations, calculate its cost of goods purchased and its cash paid for merchandise.

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

Equipment costing $200,000 with accumulated depreciation of $160,000 is sold at a loss of $10,000. This implies that $30,000 cash was received from the sale.

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

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:

A company reported that its bonds with a par value of $50,000 and a carrying value of $57,000 are retired for $60,000 cash, resulting in a loss of $3,000. The amount to be reported under cash flows from financing activities is:

The statement of cash flows reports all but which of the following:

If a company borrows money from a bank, the interest paid on this loan should be reported on the statement of cash flows as a(n):

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

When using a spreadsheet to prepare the statement of cash flows, a decrease 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.

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating liabilities are added back to net income.

Use the following information to calculate cash paid for wages and salaries: Salaries expense 168,000 Salaries payable, January 1 6,400 Salaries payable, December 31 10,600

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are added back to net income.

Citi 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:

Sega Co. reported net cash provided by operating activities of $142.7 million and average total assets of $1,762.5 million at the end of the year. Calculate the cash flow on total assets ratio.

When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current assets are subtracted from net income.

Investing activities do not include the:

The accountant for TI Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: What is the ending balance for retained earnings?

Rowan, Inc.'s, income statement is shown below. Based on this income statement and the other information provided, calculate the net cash provided by operations using the indirect method. Additional information:

Based on the following information provided about a company's operations, calculate its cost of goods purchased and its cash paid for merchandise.

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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