Exam 12: Reporting and Interpreting the Statement of Cash Flows

A company has positive cash flow from investing and financing activities,but negative cash flow from operating activities.The likely result is:

(Multiple Choice)

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Question 161

Assume a company uses the direct method to prepare its statement of cash flows.If the company's Accounts Receivable increase during the accounting period,the change in Accounts Receivable is:

(Multiple Choice)

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Question 162

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

(True/False)

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Question 163

Which of the following statements is correct?

(Multiple Choice)

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Question 164

A corporation prepared its statement of cash flows for the year.The following information is taken from that statement: What is the cash balance at the beginning of the year?

(Multiple Choice)

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Question 165

During the current year,a company paid $4,500 which it owed from its prior year income tax liability and $30,000 for its current year tax liability.The company still owes $6,000 at the end of the current year.How much should the company report as cash paid for income taxes on its statement of cash flows for the current year?

(Multiple Choice)

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Question 166

The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets).

(True/False)

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Question 167

Which of the following items is considered to be a cash equivalent?

(Multiple Choice)

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Question 168

Which of the following variations of the accounting equation describes the preparation of the statement of cash flows?

(Multiple Choice)

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Question 169

When preparing the operating activities section of the statement of cash flows using the indirect method,an increase in Income Taxes Payable is added to net income.

(True/False)

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Question 170

ABC Company issued 30,000 shares of common stock in January.In August,the company repurchased 5,000 shares for the treasury.When reporting these transactions in the statement of cash flows,ABC Company combine them into one transaction in the activities section.

(Multiple Choice)

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Question 171

When the direct method is used to determine the cash flows from operating activities,which of the following adjustments must be made to interest expense to determine total interest payments?

(Multiple Choice)

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Question 172

Investing activities include receiving cash from the sale of land and also the resulting gain or loss on the sale.

(True/False)

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Question 173

Assume a company uses the indirect method to prepare its statement of cash flows.If Inventory decreases and Unearned Revenue increases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

(Multiple Choice)

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Question 174

Which of the following statements is correct?

(Multiple Choice)

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Question 175

Using the T-account approach:

(Multiple Choice)

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Question 176

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Why is a decrease in Accounts Receivable decrease added to sales revenue when computing cash collected from customers?

(Multiple Choice)

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Question 177

A piece of equipment 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 cash inflow from investing activities is:

(Multiple Choice)

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Question 178

Treasury stock purchases made with cash are classified as cash outflows from financing activities on the statement of cash flows.

(True/False)

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Question 179

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Which related balance sheet account will explain the difference between revenues on the income statement and cash collected from customers?

(Multiple Choice)

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Question 180

Showing 161 - 180 of 208

A company has positive cash flow from investing and financing activities,but negative cash flow from operating activities.The likely result is:

Assume a company uses the direct method to prepare its statement of cash flows.If the company's Accounts Receivable increase during the accounting period,the change in Accounts Receivable is:

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

Which of the following statements is correct?

A corporation prepared its statement of cash flows for the year.The following information is taken from that statement: What is the cash balance at the beginning of the year?

The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets).

Which of the following items is considered to be a cash equivalent?

Which of the following variations of the accounting equation describes the preparation of the statement of cash flows?

When preparing the operating activities section of the statement of cash flows using the indirect method,an increase in Income Taxes Payable is added to net income.

ABC Company issued 30,000 shares of common stock in January.In August,the company repurchased 5,000 shares for the treasury.When reporting these transactions in the statement of cash flows,ABC Company combine them into one transaction in the activities section.

When the direct method is used to determine the cash flows from operating activities,which of the following adjustments must be made to interest expense to determine total interest payments?

Investing activities include receiving cash from the sale of land and also the resulting gain or loss on the sale.

Assume a company uses the indirect method to prepare its statement of cash flows.If Inventory decreases and Unearned Revenue increases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

Which of the following statements is correct?

Using the T-account approach:

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Why is a decrease in Accounts Receivable decrease added to sales revenue when computing cash collected from customers?

A piece of equipment 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 cash inflow from investing activities is:

Treasury stock purchases made with cash are classified as cash outflows from financing activities on the statement of cash flows.

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Which related balance sheet account will explain the difference between revenues on the income statement and cash collected from customers?

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Measuring and Evaluating Financial Performance

Filters

Exam 12: Reporting and Interpreting the Statement of Cash Flows

A company has positive cash flow from investing and financing activities,but negative cash flow from operating activities.The likely result is:

Assume a company uses the direct method to prepare its statement of cash flows.If the company's Accounts Receivable increase during the accounting period,the change in Accounts Receivable is:

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

Which of the following statements is correct?

A corporation prepared its statement of cash flows for the year.The following information is taken from that statement: What is the cash balance at the beginning of the year?

The approach to preparing the cash flow statement relies on the following rearrangement of the balance sheet equation: Change in cash = Change in (Liabilities + Stockholders' Equity + Noncash Assets).

Which of the following items is considered to be a cash equivalent?

Which of the following variations of the accounting equation describes the preparation of the statement of cash flows?

When preparing the operating activities section of the statement of cash flows using the indirect method,an increase in Income Taxes Payable is added to net income.

ABC Company issued 30,000 shares of common stock in January.In August,the company repurchased 5,000 shares for the treasury.When reporting these transactions in the statement of cash flows,ABC Company ______ combine them into one transaction in the ______ activities section.

When the direct method is used to determine the cash flows from operating activities,which of the following adjustments must be made to interest expense to determine total interest payments?

Investing activities include receiving cash from the sale of land and also the resulting gain or loss on the sale.

Assume a company uses the indirect method to prepare its statement of cash flows.If Inventory decreases and Unearned Revenue increases during an accounting period,what does the company do with the changes in these accounts to calculate cash flows from operating activities?

Which of the following statements is correct?

Using the T-account approach:

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Why is a decrease in Accounts Receivable decrease added to sales revenue when computing cash collected from customers?

A piece of equipment 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 cash inflow from investing activities is:

Treasury stock purchases made with cash are classified as cash outflows from financing activities on the statement of cash flows.

Assume that the direct method is used to prepare the operating activities section of the statement of cash flows.Which related balance sheet account will explain the difference between revenues on the income statement and cash collected from customers?

Business Decisions and Financial Accounting

Reporting Investing and Financing Results on the Balance Sheet

Reporting Operating Results on the Income Statement

Adjustments,financial Statements,and Financial Results

Fraud, Internal Control, and Cash

Internal Control and Financial Reporting for Cash and Merchandising Operations

Reporting and Interpreting Inventories and Cost of Goods Sold

Reporting and Interpreting Receivables,bad Debt Expense,and Interest Revenue

Reporting and Interpreting Long-Lived Tangible and Intangible Assets

Reporting and Interpreting Liabilities

Reporting and Interpreting Stockholders Equity

Measuring and Evaluating Financial Performance

Filters

ABC Company issued 30,000 shares of common stock in January.In August,the company repurchased 5,000 shares for the treasury.When reporting these transactions in the statement of cash flows,ABC Company combine them into one transaction in the activities section.