Question 1

Peak pricing charges:

Accepted Answer

A) A higher price when demand is high and a lower price when demand is low. 
B) A lower price when demand is high and a higher price when demand is low. 
C) A low price when demand is high and a lower price when demand is low. 
D) A high price when demand is high and a higher price when demand is low. 
A) A higher price when demand is high and a lower price when demand is low. 
B) A lower price when demand is high and a higher price when demand is low. 
C) A low price when demand is high and a lower price when demand is low. 
D) A high price when demand is high and a higher price when demand is low.

Question 2

Interest paid belongs in the operating activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Based solely on the data provided above,Hierarchy's net cash flow from investing activities for the current year is:

Accepted Answer

A) $264,000 net cash provided by investing activities. 
B) $264,000 net cash used by investing activities. 
C) $201,600 net cash provided by investing activities. 
D) $1,200,000 net cash provided by investing activities. 
A) $264,000 net cash provided by investing activities. 
B) $264,000 net cash used by investing activities. 
C) $201,600 net cash provided by investing activities. 
D) $1,200,000 net cash provided by investing activities.

Question 4

[The following information applies to the questions displayed below.]
An analysis of Kenny Corporation's Investment in Marketable Securities account during 2018 disclosed the following:
   Kenny's 2018 income statement included a $90,000 loss on sale of marketable securities and $65,000 dividend income from marketable securities.All payments and proceeds relating to marketable securities transactions were in cash.
-The amount of cash paid by Kenny Corporation in 2018 for the purchase of marketable securities was:

Accepted Answer

A) $445,000. 
B) $535,000. 
C) $355,000. 
D) $420,000. 
A) $445,000. 
B) $535,000. 
C) $355,000. 
D) $420,000.

Question 5

Based on the information provided below,complete the following worksheet to be used to prepare the statement of cash flows for the Gulp-it-Down Coffee Co.     Additional Information:
(1. )Net income for the year amounted to $60,000,and cash dividends were declared and paid in the amount of $20,000.
(2. )Gulp-it-Down Coffee Co.'s only noncash expense was depreciation that totaled $100,000.
(3. )The company purchased plant assets for $140,000.
(4. )Notes payable in the amount of $60,000 were issued during the year.

Accepted Answer

The answer of Based on the information provided below,complete the...

Question 6

[The following information applies to the questions displayed below.]
The financial statements of New World,Inc. ,provide the following information for the current year:
  
-New World's net cash flow from operating activities for the current year is:

Accepted Answer

A) $1,191,750 
B) $1,192,800 
C) $1,113,000 
D) $1,160,250 
A) $1,191,750 
B) $1,192,800 
C) $1,113,000 
D) $1,160,250

Question 7

Haven Corporation issued $700,000 of 10-year bonds payable at par in 2014.During 2018 Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par.These activities would be reported in Haven's statement of cash flows for 2018 as:

Accepted Answer

A) $283,333 net cash provided by financing activities. 
B) $283,333 net cash used in financing activities. 
C) $233,333 net cash used in financing activities,and $50,000 cash disbursed for operating activities. 
D) $466,667 net cash provided by financing activities,and $50,000 cash disbursed for operating activities. 
A) $283,333 net cash provided by financing activities. 
B) $283,333 net cash used in financing activities. 
C) $233,333 net cash used in financing activities,and $50,000 cash disbursed for operating activities. 
D) $466,667 net cash provided by financing activities,and $50,000 cash disbursed for operating activities.

Question 8

When using the indirect method,depreciation expense:

Accepted Answer

A) Increases net cash flow from operations. 
B) Decreases net cash flow from operations. 
C) Does not affect net income. 
D) Does not affect net cash flow from operations. 
A) Increases net cash flow from operations. 
B) Decreases net cash flow from operations. 
C) Does not affect net income. 
D) Does not affect net cash flow from operations.

Question 9

[The following information applies to the questions displayed below.]
An analysis of changes in selected balance sheet accounts of Johnson Corporation shows the following for the current year:
   Johnson's income statement for the current year includes a $14,000 loss on disposal of plant assets.All payments and proceeds relating to purchase or sale of plant assets were in cash.
-Total cash proceeds received by Johnson from sales of plant assets during the current year amounted to:

Accepted Answer

A) $ 13,000. 
B) $ 104,000. 
C) $195,000. 
D) $ 41,000. 
A) $ 13,000. 
B) $ 104,000. 
C) $195,000. 
D) $ 41,000.

Question 10

Which of the following indicates a cash receipt?

Accepted Answer

A) A decrease in accrued expenses,such as wages payable. 
B) A decrease in accounts receivable. 
C) An increase in inventory. 
D) A decrease in accounts payable. 
A) A decrease in accrued expenses,such as wages payable. 
B) A decrease in accounts receivable. 
C) An increase in inventory. 
D) A decrease in accounts payable.

Question 11

[The following information applies to the questions displayed below.]
The financial statements of Seldin,Inc. ,provide the following information for the current year:
  
-Compute the amount of cash received from customers during the current year.

Accepted Answer

A) $265,000 
B) $255,000 
C) $260,000 
D) $ 40,000 
A) $265,000 
B) $255,000 
C) $260,000 
D) $ 40,000

Question 12

Which of the following indicates cash receipts?

Accepted Answer

A) Debit entries in the Notes Receivable account. 
B) Credit entries in the Marketable Securities account. 
C) Debit entries in the Notes Payable account. 
D) Credit entries in the Accumulated Depreciation account. 
A) Debit entries in the Notes Receivable account. 
B) Credit entries in the Marketable Securities account. 
C) Debit entries in the Notes Payable account. 
D) Credit entries in the Accumulated Depreciation account.

Question 13

In a statement of cash flows,payments of dividends are classified as:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Costs and Expenses. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Costs and Expenses.

Question 14

When preparing a statement of cash flows,money held in cash equivalents is considered the same as cash.

Accepted Answer

A) True 
 B)False

Question 15

Dividends paid belong in the operating activities section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 16

Large cash flows from operations are more important to financial statement analysts over the long term than cash flows from financing or investing.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Cash proceeds from selling investments. 
B) Cash proceeds from collections on loans. 
C) Cash advanced to borrowers. 
D) Cash proceeds from borrowing. 
A) Cash proceeds from selling investments. 
B) Cash proceeds from collections on loans. 
C) Cash advanced to borrowers. 
D) Cash proceeds from borrowing.

Question 18

Hamilton Company reported an increase of $370,000 in its accounts receivable during the year 2018.The company's statement of cash flows for 2018 reported $1 million of cash received from customers.What amount of net sales must Hamilton have recorded in 2018?

Accepted Answer

A) $ 630,000 
B) $1,370,000 
C) $1,000,000 
D) $ 370,000 
A) $ 630,000 
B) $1,370,000 
C) $1,000,000 
D) $ 370,000

Question 19

When applying the direct method in a statement of cash flows,the amount of depreciation is added to net income.

Accepted Answer

A) True 
 B)False

Question 20

Which statement is true as to the FASB's position on the presentation of the statement of cash flows?

Accepted Answer

A) The FASB recommends the use of the indirect method,but most companies use the direct method. 
B) The FASB recommends the use of the direct method,but most companies use the indirect method. 
C) The FASB recommends the use of the direct method,and most companies use the direct method. 
D) The FASB recommends the use of the indirect method,and most companies use the indirect method. 
A) The FASB recommends the use of the indirect method,but most companies use the direct method. 
B) The FASB recommends the use of the direct method,but most companies use the indirect method. 
C) The FASB recommends the use of the direct method,and most companies use the direct method. 
D) The FASB recommends the use of the indirect method,and most companies use the indirect method.

Exam 13: Statement of Cash Flows

Peak pricing charges:

Interest paid belongs in the operating activities section of the statement of cash flows.

Based solely on the data provided above,Hierarchy's net cash flow from investing activities for the current year is:

[The following information applies to the questions displayed below.] The financial statements of New World,Inc. ,provide the following information for the current year: -New World's net cash flow from operating activities for the current year is:

Haven Corporation issued $700,000 of 10-year bonds payable at par in 2014.During 2018 Haven paid $50,000 interest and an additional $233,333 to retire one-third of the bonds at par.These activities would be reported in Haven's statement of cash flows for 2018 as:

When using the indirect method,depreciation expense:

Which of the following indicates a cash receipt?

[The following information applies to the questions displayed below.] The financial statements of Seldin,Inc. ,provide the following information for the current year: -Compute the amount of cash received from customers during the current year.

Which of the following indicates cash receipts?

In a statement of cash flows,payments of dividends are classified as:

When preparing a statement of cash flows,money held in cash equivalents is considered the same as cash.

Dividends paid belong in the operating activities section of the statement of cash flows.

Large cash flows from operations are more important to financial statement analysts over the long term than cash flows from financing or investing.

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

Hamilton Company reported an increase of $370,000 in its accounts receivable during the year 2018.The company's statement of cash flows for 2018 reported $1 million of cash received from customers.What amount of net sales must Hamilton have recorded in 2018?

When applying the direct method in a statement of cash flows,the amount of depreciation is added to net income.

Which statement is true as to the FASB's position on the presentation of the statement of cash flows?

Accounting: Information for Decision Making

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters