Match between columns Premises: Paid wages to employees. Received interest from investments in trading securities. Purchases of land for cash. Issued bonds payable for cash. Paid cash dividends. Sold equipment for cash. Collected accounts receivable from customers. Issued stock for cash. Purchased land in exchange for a note payable. Received cash dividends from investments in trading securities.

The Answer of financial activity, or a significant and noncash is...

Use the following information to calculate cash paid for income taxes: $\begin{array}{ll}\text { Income tax expense }&\$50,000\\ \text { Income tax payable, January } 1 & 9,000 \\ \text { Income tax payable, December 31 } & 7,000 \end{array}$ A) $ \$ 57,000 $. B) $ \$ 50,000 $. C) $ \$ 59,000 $. D) $ \$ 52,000 $. E) $ \$ 48,000 $.

The answer of Use the following information to calculate cash...

Use the following information to calculate cash paid for salaries: $\begin{array}{l|r} \text { Salaries expense } & \$ 175,000 \\ \hline \text { Salaries payable, January } 1 & 20,000 \\ \hline \text { Salaries payable, December } 31 & 12,000 \end{array}$

A) $183,000. B) $175,000. C) $143,000. D) $167,000. E) $155,000. A) $183,000. B) $175,000. C) $143,000. D) $167,000. E) $155,000.

Exam 16: Reporting the Statement of Cash Flows

For each of the following items, indicate whether it would be classified as an operating activity, an investing activity, a financing activity, or a significant noncash financing and investing activity.

Paid wages to employees.

financial activity, or a significant

Received interest from investments in trading securities.

noncash financing and investing activity

Purchases of land for cash.

investing activity

Correct Answer:

Verified

Paid wages to employees.

Received interest from investments in trading securities.

Purchases of land for cash.

Issued bonds payable for cash.

(Matching)

4.8/5

(28)

Question 161

A company's income statement showed the following: net income, $124,000 and depreciation expense, $30,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; and accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

(Multiple Choice)

4.9/5

(35)

Question 162

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

(Multiple Choice)

4.8/5

(35)

Question 163

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

(Multiple Choice)

4.9/5

(35)

Question 164

An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?

(Multiple Choice)

4.8/5

(37)

Question 165

Internal users of the statement of cash flows often use cash flow information to plan day-to-day operating activities and make long-term investment and financing decisions.

(True/False)

5.0/5

(34)

Question 166

Use the following information to calculate cash paid for income taxes: Income tax expense \5 0,000 Income tax payable, January 1 9,000 Income tax payable, December 31 7,000 A) $\$ 57,000$ . B) $\$ 50,000$ . C) $\$ 59,000$ . D) $\$ 52,000$ . E) $\$ 48,000$ .

(Short Answer)

4.8/5

(36)

Question 167

Use the following information to calculate cash paid for salaries: Salaries expense \ 175,000 Salaries payable, January 1 20,000 Salaries payable, December 31 12,000

(Multiple Choice)

4.9/5

(38)

Question 168

The purchase of stock in another company is classified as an investing activity.

(True/False)

4.8/5

(24)

Question 169

The indirect method separately lists each major item of operating cash receipts and cash payments.

(True/False)

4.9/5

(36)

Question 170

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.

(True/False)

4.7/5

(40)

Question 171

When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

(True/False)

4.8/5

(39)

Question 172

A cash coverage of growth ratio of less than 1 indicates cash inadequacy to meet asset growth.

(True/False)

4.7/5

(31)

Question 173

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

(Essay)

4.9/5

(35)

Question 174

All of the following statements related to preparation of the statement of cash flows under U.S. GAAP and IFRS are true except:

(Multiple Choice)

4.8/5

(36)

Question 175

The cash flow on total assets ratio is calculated by:

(Multiple Choice)

4.8/5

(36)

Question 176

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

(Essay)

4.7/5

(29)

Question 177

The statement of cash flows reports and proves the net change in cash for a reporting period.

(True/False)

4.8/5

(41)

Question 178

The cash flow on total assets ratio:

(Multiple Choice)

4.9/5

(42)

Question 179

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

(True/False)

4.9/5

(30)

Question 180

Showing 161 - 180 of 186

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

An example of a transaction that must be disclosed as a noncash investing and financing activity includes all but which of the following?

Internal users of the statement of cash flows often use cash flow information to plan day-to-day operating activities and make long-term investment and financing decisions.

Use the following information to calculate cash paid for income taxes: Income tax expense \5 0,000 Income tax payable, January 1 9,000 Income tax payable, December 31 7,000 A) $\$ 57,000$ . B) $\$ 50,000$ . C) $\$ 59,000$ . D) $\$ 52,000$ . E) $\$ 48,000$ .

Use the following information to calculate cash paid for salaries: Salaries expense \ 175,000 Salaries payable, January 1 20,000 Salaries payable, December 31 12,000

The purchase of stock in another company is classified as an investing activity.

The indirect method separately lists each major item of operating cash receipts and cash payments.

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.

When using a spreadsheet to prepare the statement of cash flows, an increase in accounts payable is entered in the Analysis of Changes columns with a debit in the statement of cash flows section and a credit in the balance sheet section.

A cash coverage of growth ratio of less than 1 indicates cash inadequacy to meet asset growth.

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

All of the following statements related to preparation of the statement of cash flows under U.S. GAAP and IFRS are true except:

The cash flow on total assets ratio is calculated by:

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

The statement of cash flows reports and proves the net change in cash for a reporting period.

The cash flow on total assets ratio:

A purchase of land in exchange for a long-term note payable must be disclosed as a noncash investing and financing activity.

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