Exam 5: Balance Sheet and Statement of Cash Flows

An asset which is expected to be converted into cash, sold, or consumed within one year of the balance sheet date is always reported as a current asset.

Which of the following is a contra account?

Free cash flow is calculated as net cash provided by operating activities less

Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.

In preparing a statement of cash flows, sale of treasury stock at an amount greater than cost would be classified as a(n)

Preparing the statement of cash flows involves all of the following except determining the

A measure of a company's financial flexibility is the

Quince Holman Corporation reports: Cash provided by operating activities \ 250,000 Cash used by investing activities 110,000 Cash provided by financing activities 140,000 Beqinning cash balance 70,000 What is Holman's ending cash balance?

The amount of time that is expected to elapse until an asset is realized or otherwise converted into cash is referred to as

Significant accounting policies may not be

A general description of the depreciation methods applicable to major classes of depreci-able assets

Which of the following is a limitation of the balance sheet?

Which of the following should not be considered as a current asset in the balance sheet?

An example of an item which is not an element of working capital is

Gordman Corporation reports: Cash provided by operating activities \ 200,000 Cash used by investing activities 110,000 Cash provided by financing activities 140,000 Beqinning cash balance 70,000 What is Gordman's ending cash balance?

Morgan Corporation reports the following information: Net cash provided by operating activities \ 255,000 Average current liabilities 150,000 Average long-term liabilities 100,000 Dividends paid 60,000 Capital expenditures 110,000 Pavments of debt 35,000 Morgan's free cash flow is

Sam Hurd Company has the following items: common stock, $720,000; treasury stock, $85,000; deferred taxes, $100,000 and retained earnings, $313,000.What total amount should Sam Hurd Company report as stockholders' equity?

Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies? Depreciation Method Composition a. No Yes b. Yes Yes c. Yes No d. No No

The basis for classifying assets as current or noncurrent is conversion to cash within

The accounting profession has recommended that companies use the word reserve only to describe amounts deducted from assets.