Exam 12: Reporting and Interpreting the Statement of Cash Flows

B. Darin Company loaned $3,000,000 at 7% interest to S. Dee Company. B. Darin Company would report this as an investing activity on the statement of cash flows. TRUE

When a company uses the direct method to determine the net cash flows from operating activities, cash flows from operating activities will:

Your company owned equipment with a book value of $120,000 that was sold during this accounting period for $30,500 in cash, and purchased new equipment for cash of $148,000. Your company would record:

Which of the following are used to determine cash flows from financing activities?

A toy store with a calendar year-end is likely to have:

Use the information provided above to calculate the company's: a. net income for 2011. b. net cash flow from operating activities in 2011 using the indirect method.

When using the spreadsheet approach for preparing a Statement of Cash Flows using the indirect method, one half of the spreadsheet reflects changes in balance sheet accounts and the other half is used to demonstrate their effect on cash flows.

When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from net income.

Consider the following information: The company would report a net cash inflow from operating activities of:

Which of the following statements regarding the calculation of cash flows from operating activities under the direct method is true?

Cash flows from investing activities include cash:

Brighton, Inc., uses the indirect method to determine its net cash flows from operating activities. During the course of the year, the company's accounts receivable increased by $10,000 and its accounts payable decreased by $5,000. As a result of these two items, the calculation to determine cash flows from operating activities will be:

The direct exchange of debt for equipment would be shown:

If accounts receivable are increasing faster than net income, other things being equal, net cash flows from operating activities will:

What is the first step in calculating cash flows from operations when the indirect method is used?

Which of the following statements regarding calculation of cash flows from operating activities under the indirect method is true?

Treasury stock purchases made with cash are cash outflows in the financing activities section of the statement of cash flows.

If net cash flow from operating activities is unchanged, but net income is increasing, the quality of income ratio will:

Major investing and financing activities that do not involve cash do not have to be reported on the statement of cash flows.

A company loaned $1,000,0000 with interest at 7% to another company. The interest revenue from this loan would be reported on the statement of cash flows as