Exam 6: Statements of Financial Position and Cash Flows and the Annual Report

The report format of the balance sheet lists assets on the left side and liabilities and stockholders' equity on the right side of the statement.

Cash flows from financing activities are ________.

Which of the following is considered an investing activity when preparing the statement of cash flows?

A firm that responds quickly to unexpected circumstances exhibits a high level of financial flexibility.

Danielsen,Inc had salaries payable of $50,000 as of January 1 and $30,000 as of December 31.During the year,Danielsen showed $750,000 in salaries expense on the income statement.Cash outflows for salaries for the year were ________.

The formula for working capital is ________.

Which of the following is classified as an investing activity on a statement of cash flows?

Which of the following items are not required to be presented in management's report on internal control?

The statement of cash flows summarizes a firm's cash inflows and outflows at a specific point in time.

The formula for interest coverage ratio includes all of the following except ________.

Hackett Company's prepaid rent was $12,000 at December 31 Year 1 and $15,000 at December 31,Year 2.Hackett reported rent expense of $45,000 on its Year 2 income statement.What would be reported as cash paid for rent on the statement of cash flows?

Classify the following accounts as assets (A),liabilities (L),or shareholders' equity (SE)and whether they are current (C),non-current (NC),or not applicable (N/A).

When preparing the operating activities section of the statement of cash flows under the indirect method,losses on sales of equipment are omitted.

List three areas in which the balance sheet provides important information to financial statement users.

The current ratio for Teague Industries is ________.

The indirect method of reporting cash flows from operating activities begins with net income from the income statement.

When using the direct method of reporting cash flows from operating activities,increases in accounts receivable are subtracted from revenues to arrive at cash receipts from customers.

When preparing the the operating section using the direct method,which of the following statements is true?

Solvency measures a company's ability to meet its long-term obligations as they become due.

If there is concern that a company might not continue in existence,but the auditor has concluded that the financial statements are fairly presented,the opinion that will be issued is a(n)________.