Question 1

The cash paid for dividends is included in the ________ section of the statement of cash flows.

Accepted Answer

A) operating 
B) financing 
C) investing 
D) noncash 
A) operating 
B) financing 
C) investing 
D) noncash

Question 2

The cash received from the sale of common stock is included in the ________ section of the statement of cash flows.

Accepted Answer

A) operating 
B) financing 
C) investing 
D) noncash 
A) operating 
B) financing 
C) investing 
D) noncash

Question 3

Treasury stock is shown on the balance sheets as a deduction from ________.

Accepted Answer

A) total assets 
B) total liabilities 
C) total current assets 
D) total stockholders' equity 
A) total assets 
B) total liabilities 
C) total current assets 
D) total stockholders' equity

Question 4

For the year ended December 31,2015,the following information is available for the Lakers Company:
     Required:
Prepare the operating activities section of the statement of cash flows for the year ending December 31,2015.Use the indirect method.

Accepted Answer

The answer of For the year ended December 31,2015,the following...

Question 5

When calculating the net cash provided by operating activities,which procedure should NOT be carried out? Assume the indirect method is used.

Accepted Answer

A) add depreciation expense 
B) subtract a decrease in accounts payable 
C) subtract a decrease in prepaid expenses 
D) add a decrease in inventories 
A) add depreciation expense 
B) subtract a decrease in accounts payable 
C) subtract a decrease in prepaid expenses 
D) add a decrease in inventories

Question 6

The limited liability of stockholders in a corporation means that ________.

Accepted Answer

A) the company's creditors cannot seek payment from the stockholders as individuals if the corporation cannot pay its debt 
B) the company's creditors cannot receive more than the face value of their debt 
C) the short-term creditors have to be paid before the long-term creditors 
D) the long-term creditors have to be paid before the short-term creditors 
A) the company's creditors cannot seek payment from the stockholders as individuals if the corporation cannot pay its debt 
B) the company's creditors cannot receive more than the face value of their debt 
C) the short-term creditors have to be paid before the long-term creditors 
D) the long-term creditors have to be paid before the short-term creditors

Question 7

Which of the following is NOT an intangible asset?

Accepted Answer

A) trademark 
B) copyright 
C) goodwill 
D) leasehold improvements 
A) trademark 
B) copyright 
C) goodwill 
D) leasehold improvements

Question 8

An example of a financing activity on the statement of cash flows is the conversion of debt to common stock.

Accepted Answer

A) True 
 B)False

Question 9

If a company's sales were all for cash and it paid all expenses in cash as incurred,then the net cash flow from operating activities would equal net income.

Accepted Answer

A) True 
 B)False

Question 10

The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Treasury stock is ________.

Accepted Answer

A) unissued shares of stock 
B) shares of stock held by the board of directors 
C) shares of stock held in other companies for investment purposes 
D) shares of stock already issued that are later repurchased by the corporation that originally issued them 
A) unissued shares of stock 
B) shares of stock held by the board of directors 
C) shares of stock held in other companies for investment purposes 
D) shares of stock already issued that are later repurchased by the corporation that originally issued them

Question 12

A gain on the sale of a fixed asset is reported on the statement of cash flows ________.

Accepted Answer

A) as a deduction to net income under operating activities for the indirect method 
B) as a deduction to the cash proceeds received from the sale of fixed assets under investing activities 
C) as a noncash transaction 
D) as a cash inflow under investing activities 
A) as a deduction to net income under operating activities for the indirect method 
B) as a deduction to the cash proceeds received from the sale of fixed assets under investing activities 
C) as a noncash transaction 
D) as a cash inflow under investing activities

Question 13

Land is not depreciated.

Accepted Answer

A) True 
 B)False

Question 14

Fabulous Company had the following information for the year ended December 31,2015 and December 31,2016.
   Depreciation expense for the year ended December 31,2016 was $18,000.Equipment that cost $20,000 was sold at a $3,000 loss.The equipment had accumulated depreciation of $10,000.
Required:
Prepare the investing section of the statement of cash flows for the year ended December 31,2016.Use the direct method.

Accepted Answer

Cash flows

Question 15

The inventory method a company uses does not affect its income statement.

Accepted Answer

A) True 
 B)False

Question 16

A nonoperating item on a multiple-step income statement that reflects financial decisions is ________.

Accepted Answer

A) gain from sale of inventory 
B) interest income 
C) cost of sales 
D) net profit 
A) gain from sale of inventory 
B) interest income 
C) cost of sales 
D) net profit

Question 17

What is an example of an intangible asset?

Accepted Answer

A) leasehold improvements 
B) installation costs for equipment 
C) Construction-in-progressbuilding 
D) franchise 
A) leasehold improvements 
B) installation costs for equipment 
C) Construction-in-progressbuilding 
D) franchise

Question 18

Bob Company reported sales of $200,000,an increase in accounts receivable of $15,000,and a decrease in cash of $20,000.How much cash was collected from customers?

Accepted Answer

A) $185,000 
B) $195,000 
C) $200,000 
D) $220,000 
A) $185,000 
B) $195,000 
C) $200,000 
D) $220,000

Question 19

Working capital is equal to current assets plus current liabilities.

Accepted Answer

A) True 
 B)False

Question 20

Preferred stockholders receive cash dividends before common stockholders.

Accepted Answer

A) True 
 B)False

The cash paid for dividends is included in the ________ section of the statement of cash flows.

The cash received from the sale of common stock is included in the ________ section of the statement of cash flows.

Treasury stock is shown on the balance sheets as a deduction from ________.

For the year ended December 31,2015,the following information is available for the Lakers Company: Required: Prepare the operating activities section of the statement of cash flows for the year ending December 31,2015.Use the indirect method.

When calculating the net cash provided by operating activities,which procedure should NOT be carried out? Assume the indirect method is used.

The limited liability of stockholders in a corporation means that ________.

Which of the following is NOT an intangible asset?

An example of a financing activity on the statement of cash flows is the conversion of debt to common stock.

If a company's sales were all for cash and it paid all expenses in cash as incurred,then the net cash flow from operating activities would equal net income.

The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.

Treasury stock is ________.

A gain on the sale of a fixed asset is reported on the statement of cash flows ________.

Land is not depreciated.

The inventory method a company uses does not affect its income statement.

A nonoperating item on a multiple-step income statement that reflects financial decisions is ________.

What is an example of an intangible asset?

Bob Company reported sales of $200,000,an increase in accounts receivable of $15,000,and a decrease in cash of $20,000.How much cash was collected from customers?

Working capital is equal to current assets plus current liabilities.

Preferred stockholders receive cash dividends before common stockholders.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

The cash paid for dividends is included in the ________ section of the statement of cash flows.

The cash received from the sale of common stock is included in the ________ section of the statement of cash flows.

Treasury stock is shown on the balance sheets as a deduction from ________.

For the year ended December 31,2015,the following information is available for the Lakers Company: Required: Prepare the operating activities section of the statement of cash flows for the year ending December 31,2015.Use the indirect method.

When calculating the net cash provided by operating activities,which procedure should NOT be carried out? Assume the indirect method is used.

The limited liability of stockholders in a corporation means that ________.

Which of the following is NOT an intangible asset?

An example of a financing activity on the statement of cash flows is the conversion of debt to common stock.

If a company's sales were all for cash and it paid all expenses in cash as incurred,then the net cash flow from operating activities would equal net income.

The Allowance for Bad Debts account is added to the Accounts Receivable account on the balance sheet.

Treasury stock is ________.

A gain on the sale of a fixed asset is reported on the statement of cash flows ________.

Land is not depreciated.

The inventory method a company uses does not affect its income statement.

A nonoperating item on a multiple-step income statement that reflects financial decisions is ________.

What is an example of an intangible asset?

Bob Company reported sales of $200,000,an increase in accounts receivable of $15,000,and a decrease in cash of $20,000.How much cash was collected from customers?

Working capital is equal to current assets plus current liabilities.

Preferred stockholders receive cash dividends before common stockholders.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

Filters