Exam 11: The Statement Of Cash Flows

In terms of the statement of cash flows, cash includes actual cash items minus certain cash equivalents such as commercial paper, money market funds, and treasury bills.

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.) -Issued stock to buy a building.

Operating activities involve the acquiring and selling of goods and services for cash or on account.

The statement of cash flows summarizes the operating, investing, and financing activities of a business for a period of time.

A company reported the following information: How much cash was paid for salaries during 2020?

A company completed the following transactions involving investments during the current year.

Cash flows from acquiring and selling products are classified as

Mustard Seed Gifts had the following results for December 31, 2020 and 2019, respectively: What was the amount of cash flows from investing activities for 2020?

A(n) ____________________ occurs when the cash received from selling an item of property, plant, and equipment is greater than the book value of the asset sold. It is also shown in the operating activities section of the statement of cash flows prepared using the indirect method.

Merry Maids Company Merry Maids Company began 2019 with a cash and cash equivalents balance of $7,670. Consolidated statements of cash flows for the years ended December 31, 2020 and 2019, are presented below: -Refer to Merry Maids Company. At the end of each year, the company's cash balance was approximately $5 to $7 million. What does this indicate about its cash management techniques?

Mary Kay Cosmetics Selected data and additional information from the company's records are presented below: Additional information: -Refer to Mary Kay Cosmetics. What amount was declared and paid for dividends during 2020?

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.) -Issued long-term bonds.

The purchase of inventory is an important ____________________ activity for a retailer.

Which of the following operating activities results in a cash outflow?

Maritime Marine Services Selected data from the financial statements for the years ended December 31, 2020 and 2019, are presented below: The following additional information was obtained from the company's records: -Refer to Maritime Marine Services. Assuming that the book value of the property, plant and equipment disposed of during 2020 was $90, what were the cash proceeds from the disposal?

The information in a statement of cash flows helps investors, creditors and others judge a company's ability to meet its obligations and pay ____________________.

Which of the following activities is most likely to have a cash flow effect?

Use the following codes to indicate how the cash flow effect, if any, of each transaction or event would be reported on a statement of cash flows if the operating activities section is prepared using the indirect method. (Choices may be used more than once.) -Increase in the inventory balance.

A company acquired land by issuing its common stock. How should this transaction be disclosed when a statement of cash flows is prepared?

When using the direct method to determine operating cash flows, how is the purchase of equipment for cash shown on the Statement of Cash Flows?