Use the following information to calculate cash received from dividends: \[\begin{array} { l l } \text { Dividends revenue } & \$ 63,500 \\ \text { Dividends receivable, January 1 } & 3,600 \\ \text { Dividends receivable, December } 31 & 3,100 \end{array}\]

A) $64,000. B) $63,500. C) $60,400. D) $67,100. E) $63,000. A) $64,000. B) $63,500. C) $60,400. D) $67,100. E) $63,000.

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. $\begin{array} { l } \text {Cost of goods sold. } &\$226,000\\ \text {Merchandise inventory, January 1. } &54,800\\ \text {Merchandise inventory, December 31 } &57,400\\ \text {Accounts payable, January 1. } &54,400\\ \text {Accounts payable, December 31. } &59,800\\ \end{array}$

A) $234,000. B) $220,000. C) $223,200. D) $218,000. E) $228,800. A) $234,000. B) $220,000. C) $223,200. D) $218,000. E) $228,800.

Exam 16: Reporting the Statement of Cash Flows

Use the following information to calculate cash received from dividends: Dividends revenue \ 63,500 Dividends receivable, January 1 3,600 Dividends receivable, December 31 3,100

(Multiple Choice)

4.8/5

(43)

Question 101

When preparing the operating activities section of the statement of cash flows using the direct method, non-operating gains are added to net income.

(True/False)

4.8/5

(29)

Question 102

All of the following statements related to reporting cash flows from operating activities under U.S. GAAP and IFRS are true except:

(Multiple Choice)

4.7/5

(41)

Question 103

A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

(Multiple Choice)

4.8/5

(33)

Question 104

A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

(Multiple Choice)

4.8/5

(27)

Question 105

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

(True/False)

4.7/5

(40)

Question 106

Of the following, which one affects cash during a period?

(Multiple Choice)

4.8/5

(36)

Question 107

Preparation of the statement of cash flows does not involve:

(Multiple Choice)

4.8/5

(34)

Question 108

Alvez reports net income of $305,000 for the year ended December 31. It also reports $93,700 depreciation expense and a $10,000 loss on the sale of equipment. Its comparative balance sheet reveals a $40,200 increase in accounts receivable, a $10,200 decrease in prepaid expenses, a $15,200 increase in accounts payable, a $12,500 decrease in wages payable, a $75,000 increase in equipment, and a $100,000 decrease in notes payable. Calculate the net increase in cash for the year.

(Multiple Choice)

4.8/5

(32)

Question 109

Use the following information about the current year's operations of a company to calculate the cash paid for merchandise. Cost of goods sold. \2 26,000 Merchandise inventory, January 1. 54,800 Merchandise inventory, December 31 57,400 Accounts payable, January 1. 54,400 Accounts payable, December 31. 59,800

(Multiple Choice)

4.8/5

(37)

Question 110

Which one of the following is representative of typical cash flows from operating activities?

(Multiple Choice)

4.9/5

(37)

Question 111

Which of the following is included in the cash flows from financing activities section of the statement of cash flows?

(Multiple Choice)

4.9/5

(32)

Question 112

When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating losses are added to net income.

(True/False)

4.8/5

(28)

Question 113

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

(Multiple Choice)

4.7/5

(33)

Question 114

Match each of the appropriate definitions with items.

A financial statement that reports the cash inflows and cash outflows for an accounting period, and classifies those cash flows as operating, investing, or financing activities.

Statement of cash flows

Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed, and obtaining cash from or distributing cash to owners.

Financing activities

Transactions that include making and collecting notes receivable or purchasing and selling plant assets, or investments in other than cash equivalents and trading securities.

Investing activities

Correct Answer:

Verified

A financial statement that reports the cash inflows and cash outflows for an accounting period, and classifies those cash flows as operating, investing, or financing activities.

Transactions with a company's owners and creditors that include obtaining cash from issuing debt and repaying the amounts borrowed, and obtaining cash from or distributing cash to owners.

Transactions that include making and collecting notes receivable or purchasing and selling plant assets, or investments in other than cash equivalents and trading securities.

Activities that involve the production or purchase of merchandise and the sale of goods or services to customers, including expenditures related to administering the business.

A method of computing and reporting the net cash provided (used)by operating activities that lists the major items of operating cash receipts, and then subtracts the major items of operating cash payments.

A method of computing and reporting that involves adjusting the net income amount by adding and subtracting items that are necessary to yield net cash provided (used)by operating activities.

(Matching)

4.8/5

(38)

Question 115

Explain the value of separating cash flows into operating activities, investing activities, and financing activities to financial statement users in analyzing cash flows and the company's financial performance and condition.

(Essay)

4.8/5

(39)

Question 116

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

(True/False)

4.9/5

(40)

Question 117

Receipts of cash dividends and interest earned on loans are classified as investing activities.

(True/False)

4.8/5

(37)

Question 118

A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

(True/False)

4.8/5

(35)

Question 119

Mercury Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $150,000 was sold for its book value in Year 2. There were no other equipment purchases or sales during the year. The following selected information is available for Mercury Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31 Y ear 2 Y ear 1 Equipment \ 600,000 \ 750,000 Accumulated Depreciation-Equipment 428,000 500,000

(Multiple Choice)

4.9/5

(43)

Question 120

Showing 101 - 120 of 186

Use the following information to calculate cash received from dividends: Dividends revenue \ 63,500 Dividends receivable, January 1 3,600 Dividends receivable, December 31 3,100

When preparing the operating activities section of the statement of cash flows using the direct method, non-operating gains are added to net income.

All of the following statements related to reporting cash flows from operating activities under U.S. GAAP and IFRS are true except:

A machine with a cost of $130,000, accumulated depreciation of $85,000, and current year depreciation expense of $17,000 is sold for $40,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

A machine with a cost of $130,000, current year depreciation expense of $17,000 and accumulated depreciation of $85,000 is sold for $40,000 cash. The total amount that should be reported in the operating section of the statement of cash flow as per indirect method is:

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

Of the following, which one affects cash during a period?

Preparation of the statement of cash flows does not involve:

Which one of the following is representative of typical cash flows from operating activities?

Which of the following is included in the cash flows from financing activities section of the statement of cash flows?

When preparing the operating activities section of the statement of cash flows using the indirect method, non-operating losses are added to net income.

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Explain the value of separating cash flows into operating activities, investing activities, and financing activities to financial statement users in analyzing cash flows and the company's financial performance and condition.

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

Receipts of cash dividends and interest earned on loans are classified as investing activities.

A cash equivalent must be readily convertible to a known amount of cash, and must be sufficiently close to its maturity so its market value is unaffected by interest rate changes.

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