Question 1

Cash flows from financing activities include

Accepted Answer

A)  proceeds received from sale of equipment. 
B)  proceeds received from sale of the company's shares. 
C)  purchase of land. 
D)  proceeds from the sale of shares of another company. 
A)  proceeds received from sale of equipment. 
B)  proceeds received from sale of the company's shares. 
C)  purchase of land. 
D)  proceeds from the sale of shares of another company.

Question 2

The components of a Statement of Cash Flows are investing, financing, and operating activities.

Accepted Answer

A) True 
 B)False

Question 3

The cash flows to total liabilities ratio measures

Accepted Answer

A)  the percentage of a company's current liabilities that could be met with one year's investing cash flows. 
B)  the percentage of a company's long term liabilities that could be met with one year's operating cash flows. 
C)  the percentage of a company's total liabilities that could be met with one year's operating cash flows. 
D)  the percentage of a company's current liabilities that could be met with one year's financing cash flows. 
A)  the percentage of a company's current liabilities that could be met with one year's investing cash flows. 
B)  the percentage of a company's long term liabilities that could be met with one year's operating cash flows. 
C)  the percentage of a company's total liabilities that could be met with one year's operating cash flows. 
D)  the percentage of a company's current liabilities that could be met with one year's financing cash flows.

Question 4

Which of the following is NOT normally disclosed as supplementary information on the Statement of Cash Flows?

Accepted Answer

A)  cash paid for dividends during the year 
B)  depreciation expense for the year 
C)  income taxes paid during the year 
D)  cash paid for interest during the year 
A)  cash paid for dividends during the year 
B)  depreciation expense for the year 
C)  income taxes paid during the year 
D)  cash paid for interest during the year

Question 5

Which of the following is a deduction from net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows?

Accepted Answer

A)  increase in accounts payable 
B)  decrease in prepaid expenses 
C)  loss on sale of investments 
D)  depreciation expense 
A)  increase in accounts payable 
B)  decrease in prepaid expenses 
C)  loss on sale of investments 
D)  depreciation expense

Question 6

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

Accepted Answer

A)  issuance of bonds payable 
B)  purchase of bonds payable 
C)  sale of common shares 
D)  receipt of dividend income from investments 
A)  issuance of bonds payable 
B)  purchase of bonds payable 
C)  sale of common shares 
D)  receipt of dividend income from investments

Question 7

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

Accepted Answer

A)  $135,000 
B)  $168,000 
C)  $169,000 
D)  $152,000 
A)  $135,000 
B)  $168,000 
C)  $169,000 
D)  $152,000

Question 8

Accounting standard setters have established three acceptable methods for preparing a Statement of Cash Flows.

Accepted Answer

A) True 
 B)False

Question 9

Paltrow Co. reported $26,000 of cash from operating activities and the following data:   Paltrow's net income/loss for the period was

Accepted Answer

A)  $10,000 income. 
B)  $54,000 loss. 
C)  $28,000 loss. 
D)  $8,000 loss. 
A)  $10,000 income. 
B)  $54,000 loss. 
C)  $28,000 loss. 
D)  $8,000 loss.

Question 10

Companies can raise an unlimited amount of cash from financing activities as long as they are willing to pay higher interest rates.

Accepted Answer

A) True 
 B)False

Question 11

Cash equivalents includes everything, EXCEPT

Accepted Answer

A)  demand deposits. 
B)  money market funds. 
C)  short term bank loan. 
D)  lines of credit. 
A)  demand deposits. 
B)  money market funds. 
C)  short term bank loan. 
D)  lines of credit.

Question 12

The following items are reported on a company's Statement of Income. Which of them is most likely equal to its cash flow impact?

Accepted Answer

A)  Depreciation expense 
B)  Gain on sale of capital assets 
C)  Loss on sale of investment 
D)  Interest expense 
A)  Depreciation expense 
B)  Gain on sale of capital assets 
C)  Loss on sale of investment 
D)  Interest expense

Question 13

The Statement of Income reflects the lead/lag relationships in cash flows.

Accepted Answer

A) True 
 B)False

Cash flows from financing activities include

The components of a Statement of Cash Flows are investing, financing, and operating activities.

The cash flows to total liabilities ratio measures

Which of the following is NOT normally disclosed as supplementary information on the Statement of Cash Flows?

Which of the following is a deduction from net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows?

Which of the following would be an example of an investing activity on 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 financing activities?

Accounting standard setters have established three acceptable methods for preparing a Statement of Cash Flows.

Paltrow Co. reported $26,000 of cash from operating activities and the following data: Paltrow's net income/loss for the period was

Companies can raise an unlimited amount of cash from financing activities as long as they are willing to pay higher interest rates.

Cash equivalents includes everything, EXCEPT

The following items are reported on a company's Statement of Income. Which of them is most likely equal to its cash flow impact?

The Statement of Income reflects the lead/lag relationships in 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

Cash flows from financing activities include

The components of a Statement of Cash Flows are investing, financing, and operating activities.

The cash flows to total liabilities ratio measures

Which of the following is NOT normally disclosed as supplementary information on the Statement of Cash Flows?

Which of the following is a deduction from net income when using the indirect approach to prepare the cash from operating activities of the Statement of Cash Flows?

Which of the following would be an example of an investing activity on 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 financing activities?

Accounting standard setters have established three acceptable methods for preparing a Statement of Cash Flows.

Paltrow Co. reported $26,000 of cash from operating activities and the following data: Paltrow's net income/loss for the period was

Companies can raise an unlimited amount of cash from financing activities as long as they are willing to pay higher interest rates.

Cash equivalents includes everything, EXCEPT

The following items are reported on a company's Statement of Income. Which of them is most likely equal to its cash flow impact?

The Statement of Income reflects the lead/lag relationships in 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