Exam 5: Communicating and Interpreting Accounting Information

Lori Company sold an operational asset, a machine, for cash. It originally cost $20,000. The accumulated depreciation at the date of disposal was $15,000. A gain on the disposal of $2,000 was reported. What was the cash inflow from this transaction?

Collection of principal on a note receivable is a cash flow from investing activities.

The following information was available from the financial statements of C Co. Company for the years 2011 and 2012 in millions of dollars: A. Calculate the capital acquisitions ratio for C Co. for the two years: B. Comment on the sufficiency of the capital acquisitions ratio for the two years.

The financial statements of Juliet Company show the following: How much cash was collected from customers?

The category that is generally considered to be the best measure of a company's ability to continue as a going concern is

The information in statement of cash flows should help investors and creditors evaluate:

The cash flow statement will not report the

Investing activities include

Operating activities include the cash effects of transactions that create revenues and expenses.

A statement of cash flows indicates the sources and uses of cash during a specific period.

How should the statement of cash flows be dated?

Preferred shares issued in exchange for land would be reported on the statement of cash flows in

The 20B income statement of Dunn Company reported total sales revenue of $106,000 and total expenses of $108,000 . Expenses were: building depreciation, $10,000 and patent amortization, $5,000. There was an increase in inventory of $1,000. What was cash flow from operating activities during 20B (parentheses indicate outflow)?

Match each activity below with the proper classification by inserting the proper capital letter in the space to the left. Classification of Activity I. Investing F. Financing O. Operating

Which of the following statements about the quality of earnings ratio is true?

McIntire Company reported net earnings of $40,000 which included depreciation expense and depletion expense of $21,000 and $18,000, respectively. The following changes also occurred during 20C The amount of "cash flows from operating activities" was $ _.

The statement of cash flows and the statement of financial position both report on the causes of the changes in the cash of the business.

Nelson Company collected the following data in its accounting records in 20B: No new equipment was purchased during the year. What was the cash inflow from the sale of equipment in 20B?

Which of the following is a cash inflow from financing activities?

The statement of cash flows is dated exactly like the income statement but unlike the statement of financial position.