Question 1

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 5?

Accepted Answer

A)  Successful, but actively relocating using financing from operations with cash from creditors and shareholders. 
B)  Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation. 
C)  A start-up or struggling company that is able to attract new financing for growth or reorganization. 
D)  Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors. 
A)  Successful, but actively relocating using financing from operations with cash from creditors and shareholders. 
B)  Struggling, but using cash inflows from the sale of capital assets and new borrowings to remain in operation. 
C)  A start-up or struggling company that is able to attract new financing for growth or reorganization. 
D)  Struggling, but using existing cash balances to cover losses, purchase capital assets and repay creditors.

Question 2

All companies must present operating activities first on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Patricio Co. reported $10,000 cash used in the operating activities section of the Statement of Cash Flows and the following data: depreciation expense $10,000; an accounts payable increase of $12,000; a $3,000 decrease in accounts receivable; an increase in wages payable of $8,000; and a $15,000 gain on the sale of long-term investments. Patricio Co.'s net income/loss for the period was

Accepted Answer

A)  $8,000 income. 
B)  $28,000 loss. 
C)  $38,000 loss. 
D)  $2,000 income. 
A)  $8,000 income. 
B)  $28,000 loss. 
C)  $38,000 loss. 
D)  $2,000 income.

Question 4

Capitalization refers to the long term assets on the Statement of Financial Position.

Accepted Answer

A) True 
 B)False

Question 5

In the early part of the cash-to-cash cycle, net cash flows are normally inflows.

Accepted Answer

A) True 
 B)False

Question 6

The Statement of ___ is for shareholders to assess company profitability.

Accepted Answer

A)  Cash Flows 
B)  Shareholders' Equity 
C)  Financial Position 
D)  Income 
A)  Cash Flows 
B)  Shareholders' Equity 
C)  Financial Position 
D)  Income

Question 7

Use the following information to answer questions 72-73.
Kingsway Co. had the following activity during 2015:  
-What was the cash flow from financing activities?

Accepted Answer

A)  $300,000 
B)  $292,000 
C)  $325,000 
D)  $275,000 
A)  $300,000 
B)  $292,000 
C)  $325,000 
D)  $275,000

Question 8

Cash from operating activities will be the same using either the direct or indirect method to prepare the Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would be an example of an investing activity on the Statement of Cash Flows?

Accepted Answer

A)  purchase of capital assets 
B)  sale of preferred shares 
C)  repurchase of shares issued 
D)  dividends paid to shareholders 
A)  purchase of capital assets 
B)  sale of preferred shares 
C)  repurchase of shares issued 
D)  dividends paid to shareholders

Question 10

Cash position takes into consideration cash and cash equivalents.

Accepted Answer

A) True 
 B)False

Question 11

If a company has used a line of credit, then the amount of the borrowing can be considered "positive cash".

Accepted Answer

A) True 
 B)False

Question 12

Staffen Co. reported a cash position of $35,000 and as of December 31, after its first year of operations. Staffen also reported the following:   How much cash was provided through Staffen's financing activities?

Accepted Answer

A)  $100,000 
B)  $ 93,000 
C)  $ 90,000 
D)  $ 0 
A)  $100,000 
B)  $ 93,000 
C)  $ 90,000 
D)  $ 0

Question 13

Cash from operations is negatively impacted by all of the following, EXCEPT

Accepted Answer

A)  increasing inventory. 
B)  increasing accounts receivable. 
C)  decreasing accounts payable. 
D)  increasing accounts payable. 
A)  increasing inventory. 
B)  increasing accounts receivable. 
C)  decreasing accounts payable. 
D)  increasing accounts payable.

Question 14

On the Statement of Cash Flows, which of the following would equal cash paid for income taxes?

Accepted Answer

A)  income taxes payable plus change in cash 
B)  income taxes expense plus ending balance in income taxes payable 
C)  income taxes expense plus beginning balance in income taxes payable 
D)  income taxes expense plus change in income taxes payable 
A)  income taxes payable plus change in cash 
B)  income taxes expense plus ending balance in income taxes payable 
C)  income taxes expense plus beginning balance in income taxes payable 
D)  income taxes expense plus change in income taxes payable

Question 15

Folio Co. had the following activity during 2015:   What was the cash flow from investing activities?

Accepted Answer

A)  $157,000 
B)  $140,000 
C)  $164,000 
D)  $147,000 
A)  $157,000 
B)  $140,000 
C)  $164,000 
D)  $147,000

Question 16

Inadequate financing is the major reason new business start-ups experience cash shortages.

Accepted Answer

A) True 
 B)False

Question 17

Use the following information to answer questions 72-73.
Kingsway Co. had the following activity during 2015:  
-What was the cash flow from investing activities?

Accepted Answer

A)  $ 57,000 
B)  $ 75,000 
C)  $ 93,000 
D)  $ - 0 - 
A)  $ 57,000 
B)  $ 75,000 
C)  $ 93,000 
D)  $ - 0 -

Question 18

Babin Co. reported the following for 2015:   Using the indirect method, the net cash flow from operating activities was

Accepted Answer

A)  $365,000. 
B)  $300,000. 
C)  $235,000. 
D)  $240,000. 
A)  $365,000. 
B)  $300,000. 
C)  $235,000. 
D)  $240,000.

Question 19

The cash-to-cash cycle is the time between when a company pays out cash to purchase goods until those goods are ultimately paid for by the supplier.

Accepted Answer

A) True 
 B)False

Question 20

If a company had growing sales, which of the following would normally be expected on the Statement of Cash Flows?

Accepted Answer

A)  an increase in both accounts receivable and accounts payable 
B)  a decrease in both accounts receivable and accounts payable 
C)  a decrease in accounts receivable and an increase in accounts payable 
D)  an increase in accounts receivable and a decrease in accounts payable 
A)  an increase in both accounts receivable and accounts payable 
B)  a decrease in both accounts receivable and accounts payable 
C)  a decrease in accounts receivable and an increase in accounts payable 
D)  an increase in accounts receivable and a decrease in accounts payable

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 5?

All companies must present operating activities first on the statement of cash flows.

Capitalization refers to the long term assets on the Statement of Financial Position.

In the early part of the cash-to-cash cycle, net cash flows are normally inflows.

The Statement of ___ is for shareholders to assess company profitability.

Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: -What was the cash flow from financing activities?

Cash from operating activities will be the same using either the direct or indirect method to prepare the Statement of Cash Flows.

Which of the following would be an example of an investing activity on the Statement of Cash Flows?

Cash position takes into consideration cash and cash equivalents.

If a company has used a line of credit, then the amount of the borrowing can be considered "positive cash".

Staffen Co. reported a cash position of $35,000 and as of December 31, after its first year of operations. Staffen also reported the following: How much cash was provided through Staffen's financing activities?

Cash from operations is negatively impacted by all of the following, EXCEPT

On the Statement of Cash Flows, which of the following would equal cash paid for income taxes?

Folio Co. had the following activity during 2015: What was the cash flow from investing activities?

Inadequate financing is the major reason new business start-ups experience cash shortages.

Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: -What was the cash flow from investing activities?

Babin Co. reported the following for 2015: Using the indirect method, the net cash flow from operating activities was

The cash-to-cash cycle is the time between when a company pays out cash to purchase goods until those goods are ultimately paid for by the supplier.

If a company had growing sales, which of the following would normally be expected on the Statement of Cash Flows?

Overview of Corporate Financial Reporting

Nalyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

Revenue Recognition and the Statement of Incom

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

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Exam 5: Revenue Recognition and the Statement of Income

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 5?

All companies must present operating activities first on the statement of cash flows.

Capitalization refers to the long term assets on the Statement of Financial Position.

In the early part of the cash-to-cash cycle, net cash flows are normally inflows.

The Statement of ___ is for shareholders to assess company profitability.

Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: -What was the cash flow from financing activities?

Cash from operating activities will be the same using either the direct or indirect method to prepare the Statement of Cash Flows.

Which of the following would be an example of an investing activity on the Statement of Cash Flows?

Cash position takes into consideration cash and cash equivalents.

If a company has used a line of credit, then the amount of the borrowing can be considered "positive cash".

Staffen Co. reported a cash position of $35,000 and as of December 31, after its first year of operations. Staffen also reported the following: How much cash was provided through Staffen's financing activities?

Cash from operations is negatively impacted by all of the following, EXCEPT

On the Statement of Cash Flows, which of the following would equal cash paid for income taxes?

Folio Co. had the following activity during 2015: What was the cash flow from investing activities?

Inadequate financing is the major reason new business start-ups experience cash shortages.

Use the following information to answer questions 72-73. Kingsway Co. had the following activity during 2015: -What was the cash flow from investing activities?

Babin Co. reported the following for 2015: Using the indirect method, the net cash flow from operating activities was

The cash-to-cash cycle is the time between when a company pays out cash to purchase goods until those goods are ultimately paid for by the supplier.

If a company had growing sales, which of the following would normally be expected on the Statement of Cash Flows?

Overview of Corporate Financial Reporting

Nalyzing Transaction and Their Effect on Financial Statement

Double-Entry Accounting and the Accounting Cycle

Revenue Recognition and the Statement of Incom

The Statement of Cash Flows

Cash and Accounts

Inventory

Long-Term Assets

Long-Term Liabilities

Shareholders Equity

Financial Statement Analysis

Filters