Question 1

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Accepted Answer

A) Separately lists each major item of operating cash payments. 
B) Is required if the company is a merchandiser. 
C) Must not be used in all circumstances. 
D) Separately lists each major item of operating cash receipts. 
E) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
A) Separately lists each major item of operating cash payments. 
B) Is required if the company is a merchandiser. 
C) Must not be used in all circumstances. 
D) Separately lists each major item of operating cash receipts. 
E) Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities.

Question 2

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Accepted Answer

A) True 
 B)False

Question 4

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 5

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Accepted Answer

A) Investing activities. 
B) Schedule of noncash investing or financing activity. 
C) Financing activities. 
D) Operating activities. 
E) This is not reported on the statement of cash flows. 
A) Investing activities. 
B) Schedule of noncash investing or financing activity. 
C) Financing activities. 
D) Operating activities. 
E) This is not reported on the statement of cash flows.

Question 6

Which of the following items is reported on the statement of cash flows under financing activities?

Accepted Answer

A) Declaration of a stock dividend. 
B) Stock split. 
C) Payment of a cash dividend. 
D) Payment of a stock dividend. 
E) Declaration of a cash dividend. 
A) Declaration of a stock dividend. 
B) Stock split. 
C) Payment of a cash dividend. 
D) Payment of a stock dividend. 
E) Declaration of a cash dividend.

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Which of the following items is reported on the statement of cash flows under financing activities?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Analysis of Financial Statements

Filters

Exam 16: Reporting the Statement of Cash Flows

The indirect method for the preparation of the operating activities section of the statement of cash flows:

Conversion of preferred stock to common stock is disclosed in the financing section of the statement of cash flows.

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

A purchase of land in exchange for a long-term note payable is reported in the investing section of the statement of cash flows.

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

Which of the following items is reported on the statement of cash flows under financing activities?

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resoures, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Analysis of Financial Statements

Filters