Question 1

Use the following information to calculate cash received from dividends:

Accepted Answer

A) $26,400. 
B) $29,000. 
C) $29,800. 
D) $30,600. 
E) $32,400. 
A) $26,400. 
B) $29,000. 
C) $29,800. 
D) $30,600. 
E) $32,400.

Question 2

Tate Company's 20X2 income statement and changes in selected balance sheet accounts are given below.Calculate the company's net cash provided or used by operating activities using the direct method.
   The company also experienced the following during 20X2:

Accepted Answer

The answer of Tate Company's 20X2 income statement and changes...

Question 3

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the direct method is used (which can be reported in the notes).

Accepted Answer

A) True 
 B)False

Question 4

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

Accepted Answer

A) True 
 B)False

Question 5

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:

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 6

________ activities generally include those transactions and events that affect long-term assets.

Accepted Answer

The answer of ________ activities generally include those transactions and...

Question 7

A machine with a cost of $130,000,current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash.The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

Accepted Answer

A) $17,000. 
B) $4,000. 
C) $57,000. 
D) $21,000. 
E) $22,000. 
A) $17,000. 
B) $4,000. 
C) $57,000. 
D) $21,000. 
E) $22,000.

Question 8

To be classified as a cash equivalent,the only criterion an item must meet is that it must be readily convertible to a known amount of cash.

Accepted Answer

A) True 
 B)False

Question 9

Fernwood 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) $52,000. 
B) $60,000. 
C) $58,000. 
D) $50,000. 
E) $42,000. 
A) $52,000. 
B) $60,000. 
C) $58,000. 
D) $50,000. 
E) $42,000.

Question 10

A cash equivalent must be readily convertible to a known amount of cash,and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Accepted Answer

A) True 
 B)False

Question 11

Most managers stress the importance of understanding and predicting cash flows for business decisions.

Accepted Answer

A) True 
 B)False

Question 12

Northington,Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information,determine the amount of cash flows from investing activities:

Accepted Answer

A) ($107,700). 
B) $107,700. 
C) ($200,000). 
D) ($139,700). 
E) ($207,700). 
A) ($107,700). 
B) $107,700. 
C) ($200,000). 
D) ($139,700). 
E) ($207,700).

Question 13

Alvez Company reports net income of $305,000 for the year ended December 31.It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment.Its comparative balance sheet reveals a $40,200 increase in accounts receivable,a $10,200 decrease in prepaid expenses,a $15,200 increase in accounts payable,a $12,500 decrease in wages payable,and a $100,000 decrease in notes payable.Calculate the cash provided (used)in operating activities using the indirect method.

Accepted Answer

A) $461,800. 
B) $371,400. 
C) $381,400. 
D) $351,000. 
E) $361,000. 
A) $461,800. 
B) $371,400. 
C) $381,400. 
D) $351,000. 
E) $361,000.

Question 14

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 15

Faster Freight 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 for Faster Freight.

Accepted Answer

Cash Flow on Total Assets = Op

Question 16

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 17

The cash flow on total assets ratio:

Accepted Answer

A) Is the same as return on assets. 
B) Is the same as profit margin. 
C) Can be an indicator of earnings quality. 
D) Is highly affected by accounting principles of income recognition and measurement. 
E) Is average net assets divided by cash flows from operations. 
A) Is the same as return on assets. 
B) Is the same as profit margin. 
C) Can be an indicator of earnings quality. 
D) Is highly affected by accounting principles of income recognition and measurement. 
E) Is average net assets divided by cash flows from operations.

Question 18

Financing activities include receiving cash dividends from investments in other companies' stocks.

Accepted Answer

A) True 
 B)False

Question 19

A company's income statement showed the following: net income,$134,000; depreciation expense,$30,000; and gain on sale of plant assets,$4,000.An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses increased $6,200; accounts payable increased $3,400.Calculate the net cash provided or used by operating activities.

Accepted Answer

A) $156,600. 
B) $141,000. 
C) $96,600. 
D) $148,600. 
E) $88,600. 
A) $156,600. 
B) $141,000. 
C) $96,600. 
D) $148,600. 
E) $88,600.

Question 20

Analysis reveals that a company had a net increase in cash of $20,000 for the current year.Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000.If the year-end cash balance is $24,000,the beginning cash balance was:

Accepted Answer

A) $4,000. 
B) $16,000. 
C) $44,000. 
D) $40,000. 
E) $39,000. 
A) $4,000. 
B) $16,000. 
C) $44,000. 
D) $40,000. 
E) $39,000.

Use the following information to calculate cash received from dividends:

Tate Company's 20X2 income statement and changes in selected balance sheet accounts are given below.Calculate the company's net cash provided or used by operating activities using the direct method. The company also experienced the following during 20X2:

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the direct method is used (which can be reported in the notes).

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:

________ activities generally include those transactions and events that affect long-term assets.

A machine with a cost of $130,000,current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash.The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

To be classified as a cash equivalent,the only criterion an item must meet is that it must be readily convertible to a known amount of cash.

Fernwood 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:

A cash equivalent must be readily convertible to a known amount of cash,and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Most managers stress the importance of understanding and predicting cash flows for business decisions.

Northington,Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information,determine the amount of cash flows from investing activities:

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.

Faster Freight 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 for Faster Freight.

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

The cash flow on total assets ratio:

Financing activities include receiving cash dividends from investments in other companies' stocks.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters

Exam 12: Reporting and Analyzing Cash Flows

Use the following information to calculate cash received from dividends:

Tate Company's 20X2 income statement and changes in selected balance sheet accounts are given below.Calculate the company's net cash provided or used by operating activities using the direct method. The company also experienced the following during 20X2:

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the direct method is used (which can be reported in the notes).

Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from financing activities generally affect:

________ activities generally include those transactions and events that affect long-term assets.

A machine with a cost of $130,000,current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash.The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

To be classified as a cash equivalent,the only criterion an item must meet is that it must be readily convertible to a known amount of cash.

Fernwood 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:

A cash equivalent must be readily convertible to a known amount of cash,and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

Most managers stress the importance of understanding and predicting cash flows for business decisions.

Northington,Inc.is preparing the company's statement of cash flows for the fiscal year just ended.Using the following information,determine the amount of cash flows from investing activities:

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.

Faster Freight 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 for Faster Freight.

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

The cash flow on total assets ratio:

Financing activities include receiving cash dividends from investments in other companies' stocks.

Introducing Financial Statements

Financial Statements and the Accounting System

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash,fraud,and Internal Control

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments

International Operations

Filters