Exam 5: Revenue Recognition and the Statement of Income

The Statement of Cash Flows provides a perspective of an organization's performance by highlighting the results in the net change in its cash position during the year.

Assume a company reported net income of $53,000, loss on the sale of equipment of $10,000, and gain on sale of investments of $21,000. If there were no other adjustments to reconcile net income to cash from operating activities, the cash inflow from operating activities must have been

If a company has made arrangements with a bank to borrow money in the months when they have a negative cash balance, this arrangement is a

Non-cash expenses will reduce the amount of cash a company is able to generate from its operations.

Obtaining resources for the corporation from investors or debt-holders and the return of resources to shareholders and debt-holders is considered part of which of these activities on the Statement of Cash Flows?

Which of the following would cause an inflow of cash?

Cash equivalents include investments that can be readily converted into cash; investment maturity dates are irrelevant.

Perth Company had reported the following items: If cash and cash equivalents at the beginning of the year were $18,500, the ending cash and cash equivalents are closest to

Use the following chart for questions 84-88. -Based on the chart above which company profile will be fit the cash flow pattern for scenario 1?

Which of the following would raise a red flag about the cash-to-cash cycle when reviewing the Statement of Cash Flows?

Use the following information to answer questions 69-70. Klaus' Ltd had the following activity during 2015: -What was the cash flow from investing activities?

Alder Corp. had the following activity during 2015: What was the cash flow from financing activities?

Use the following chart for questions 84-88. -Based on the chart above which company profile will be fit the cash flow pattern for scenario 2?

The Statement of Cash Flows and Statement of Income are both important measurements of long term profitability.

A positive cash flow from operating activities indicates that a company's financing activities are generating more cash than required for operations.

Under the indirect approach, adjustments must be made to net income in the operations section for all of the following items, EXCEPT

If a company is experiencing cash flow problems it can alleviate the problem by

A company can only analyze its operations properly provided it has all detailed financial statements.

All of the following statements are true, EXCEPT

Crump Ltd. reported the following for 2015: Using the indirect method, the net cash flow is