Question 1

Use the information provided to calculate the cash paid for insurance for the period

Accepted Answer

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

Question 2

The following information is available for the Aarons Corporation:
     Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 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 3

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)  $120,000. 
B)  $71,000. 
C)  $70,000. 
D)  $24,000. 
E)  $110,000. 
A)  $120,000. 
B)  $71,000. 
C)  $70,000. 
D)  $24,000. 
E)  $110,000.

Question 4

The statement of cash flows reports and proves the net change in cash for a reporting period.

Accepted Answer

A) True 
 B)False

Question 5

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Accepted Answer

A)  Separately lists each major item of operating cash receipts. 
B)  Separately lists each major item of operating cash payments. 
C)  Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
D)  Is required if the company is a merchandiser. 
E)  Must not be used in all circumstances. 
A)  Separately lists each major item of operating cash receipts. 
B)  Separately lists each major item of operating cash payments. 
C)  Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
D)  Is required if the company is a merchandiser. 
E)  Must not be used in all circumstances.

Question 6

All of the following statements related to preparation of the statement of cash flows are true except:

Accepted Answer

A)  A company may report cash flows from operating activities using either the direct or indirect method. 
B)  Interest expense may be reported under operating or financing based on which one results in better cash flows. 
C)  Cash dividends paid to shareholders are classified as a financing activity. 
D)  Purchase of an intangible asset is classified as an investing activity. 
E)  Repaying the principal of notes payable is classified as a financing activity. 
A)  A company may report cash flows from operating activities using either the direct or indirect method. 
B)  Interest expense may be reported under operating or financing based on which one results in better cash flows. 
C)  Cash dividends paid to shareholders are classified as a financing activity. 
D)  Purchase of an intangible asset is classified as an investing activity. 
E)  Repaying the principal of notes payable is classified as a financing activity.

Question 7

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the ________ method.

Accepted Answer

The answer of The use of a spreadsheet for analysis...

Question 8

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)  $120,000. 
B)  $71,000. 
C)  $70,000. 
D)  $24,000. 
E)  $110,000. 
A)  $120,000. 
B)  $71,000. 
C)  $70,000. 
D)  $24,000. 
E)  $110,000.

Question 9

Of the following, which one affects cash during a period?

Accepted Answer

A)  The declaration of a stock dividend. 
B)  Writing off an uncollectible account receivable. 
C)  The declaration of a cash dividend. 
D)  An adjusting entry recognizing the expiration of prepaid insurance. 
E)  The payment of interest expense accrued in a previous accounting period. 
A)  The declaration of a stock dividend. 
B)  Writing off an uncollectible account receivable. 
C)  The declaration of a cash dividend. 
D)  An adjusting entry recognizing the expiration of prepaid insurance. 
E)  The payment of interest expense accrued in a previous accounting period.

Question 10

The reporting of investing and financing activities is ________ under the direct and indirect methods of preparing the statement of cash flows.

Accepted Answer

The answer of The reporting of investing and financing activities...

Question 11

The purchase of equity securities is classified as a financing activity.

Accepted Answer

A) True 
 B)False

Question 12

When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added back to net income.

Accepted Answer

A) True 
 B)False

Question 13

The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

Accepted Answer

A) True 
 B)False

Question 14

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

Accepted Answer

A) True 
 B)False

Question 15

Cash flows from investing activities include each of the following except:

Accepted Answer

A)  Payments to purchase plant assets. 
B)  Proceeds from collecting accounts receivable that arise from customer sales. 
C)  Payments to buy intangible assets. 
D)  Payments to acquire long-term investments. 
E)  Proceeds from the sale of equipment. 
A)  Payments to purchase plant assets. 
B)  Proceeds from collecting accounts receivable that arise from customer sales. 
C)  Payments to buy intangible assets. 
D)  Payments to acquire long-term investments. 
E)  Proceeds from the sale of equipment.

Question 16

Use the following income statement and information about changes in noncash current assets and liabilities to (1) prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method and (2) compute the company's cash flow on total assets ratio for the year assuming that average total assets are $525,250.
   Changes in current asset and current liability accounts for the year that relate to operations follow.

Accepted Answer

(1)
 @#IMG-DLM& (2)

Question 17

The payment of cash dividends to shareholders is classified as a financing activity.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

The direct method for reporting cash flo

Question 19

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally are affected by:

Accepted Answer

A)  Net income, current assets, and current liabilities. 
B)  Noncurrent assets. 
C)  Noncurrent liability and equity accounts. 
D)  Both noncurrent assets and noncurrent liabilities. 
E)  Equity accounts only. 
A)  Net income, current assets, and current liabilities. 
B)  Noncurrent assets. 
C)  Noncurrent liability and equity accounts. 
D)  Both noncurrent assets and noncurrent liabilities. 
E)  Equity accounts only.

Question 20

When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is subtracted from net income.

Accepted Answer

A) True 
 B)False

Use the information provided to calculate the cash paid for insurance for the period

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:

The statement of cash flows reports and proves the net change in cash for a reporting period.

The indirect method for the preparation of the operating activities section of the statement of cash flows:

All of the following statements related to preparation of the statement of cash flows are true except:

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the ________ 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:

Of the following, which one affects cash during a period?

The reporting of investing and financing activities is ________ under the direct and indirect methods of preparing the statement of cash flows.

The purchase of equity securities is classified as a financing activity.

When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added back to net income.

The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

Cash flows from investing activities include each of the following except:

The payment of cash dividends to shareholders is classified as a financing activity.

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

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally are affected by:

When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is subtracted from net income.

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

Use the information provided to calculate the cash paid for insurance for the period

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:

The statement of cash flows reports and proves the net change in cash for a reporting period.

The indirect method for the preparation of the operating activities section of the statement of cash flows:

All of the following statements related to preparation of the statement of cash flows are true except:

The use of a spreadsheet for analysis is especially useful when preparing the statement of cash flows using the ________ 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:

Of the following, which one affects cash during a period?

The reporting of investing and financing activities is ________ under the direct and indirect methods of preparing the statement of cash flows.

The purchase of equity securities is classified as a financing activity.

When preparing the operating activities section of the statement of cash flows using the indirect method, an increase in income taxes payable is added back to net income.

The direct method for computing and reporting net cash flows from operating activities involves adjusting the net income figure to obtain net cash provided or used by operating activities.

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

Cash flows from investing activities include each of the following except:

The payment of cash dividends to shareholders is classified as a financing activity.

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

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally are affected by:

When preparing the operating activities section of the statement of cash flows using the indirect method, depreciation is subtracted from net income.

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