Question 1

A use of cash for investing activities is ________.

Accepted Answer

A) payment of an account payable 
B) payment of dividends 
C) cash used to buy equipment 
D) cash used to purchase treasury stock 
A) payment of an account payable 
B) payment of dividends 
C) cash used to buy equipment 
D) cash used to purchase treasury stock C

Question 2

The following information is from X,Inc.'s December 31,2011 annual report:   Note: X,Inc.does not sell to its customers on account; it collects cash from its customers in advance.
Cash paid for insurance on X,Inc.'s statement of cash flows equals ________.

Accepted Answer

A) $30,000 
B) $29,000 
C) $33,000 
D) $31,000 
A) $30,000 
B) $29,000 
C) $33,000 
D) $31,000 B

Question 3

Team Shirts,Inc.sold a piece of equipment for $13,400.The book value of the equipment was $14,000.The original cost of the equipment was $19,000.A loss on the sale of $600 was reported.The amount of cash reported on the statement of cash flows was ________.

Accepted Answer

A) $600 net inflow 
B) $17,600 net inflow 
C) $13,400 net inflow 
D) $5,600 net outflow 
A) $600 net inflow 
B) $17,600 net inflow 
C) $13,400 net inflow 
D) $5,600 net outflow C

Question 4

Repayment of a loan is a(n)________ activity on the statement of cash flows.

Accepted Answer

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

Question 5

Team Shirts,Inc.borrowed $10,000 from First Bank of England.During the year,Team Shirts paid $800 in interest to First Bank of England.How is the accounting information for these transactions reported on the statement of cash flows?

Accepted Answer

The $10,000 loan proceeds would be repor

Question 6

Team Shirts,Inc.recognized $48,000 in salaries and wages expense for the quarter.At the beginning of the quarter,the balance in Salaries payable was $6,000.At the end of the quarter,the balance was $10,000.How is the accounting information for these items reported on the statement of cash flows using the direct method?

Accepted Answer

The net increase of $4,000 is

Question 7

Team Instructions: Divide the class into teams of three or four people.Each team member should work the following problem separately outside of class.Then give the students time in class to compare answers with their teammates and put together a final correct copy of the problem.Each team should turn in only one copy of the problem for grading,along with a copy of the annual report that it used.All team members will receive the same grade.
Provide students with copies of real merchandising companies' annual reports,or give students the Web addresses of real merchandising companies and ask them to print out and submit the annual reports.All team members should work with the same company's annual report.
Answer the following questions using the annual report assigned to your team:

Accepted Answer

The answer of Team Instructions: Divide the class into teams...

Question 8

Team Shirts,Inc.recognized $13,880 in salaries and wages expense for the quarter.At the beginning of the quarter,the balance in Salaries Payable was $2,300.At the end of the quarter,the balance was $3,425.How is the accounting information for these items reported on the statement of cash flows using the indirect method?

Accepted Answer

The net increase of

Question 9

The following information is available for two different retailers,both of whom began business this year:   Which company would you expect to have high interest expense?

Accepted Answer

A) Gnu Co. 
B) Lube Co. 
C) Both Gnu Co.and Lube Co. 
D) Neither Gnu Co.nor Lube Co. 
A) Gnu Co. 
B) Lube Co. 
C) Both Gnu Co.and Lube Co. 
D) Neither Gnu Co.nor Lube Co.

Question 10

The direct method of preparing the operating activities section of the statement of cash flows ________.

Accepted Answer

A) lists each important item of cash inflows from operating activities 
B) lists each important item of cash outflows from investing activities 
C) adjusts accrual-basis income 
D) adjusts cash-basis income 
A) lists each important item of cash inflows from operating activities 
B) lists each important item of cash outflows from investing activities 
C) adjusts accrual-basis income 
D) adjusts cash-basis income

Question 11

Use the following information from The Mane Event,Inc.,to prepare the financing activities section of the statement of cash flows for the year ended December 31,2011.

Accepted Answer

The answer of Use the following information from The Mane...

Question 12

Match between columns
                        Premises: sale of used equipment
cash sales
purchase of store supplies
payment of a cash dividend
collection of accounts receivable
repayment of loan principal
purchase of inventory
amortization of a patent
sale of land in exchange for a note payable
payment of interest

Accepted Answer

The Answer of cash inflow from financing and cash outflow is...

Question 13

Match between columns
                        Premises: sale of treasury stock
payment of rent
purchase of inventory on account
declaration of a stock dividend
payment of accounts payable

Accepted Answer

The Answer of not on the statement of cash flows is...

Question 14

Team Shirts,Inc.paid $300 worth of cash dividends to shareholders.How is this amount reported on the statement of cash flows?

Accepted Answer

The $300 would be reported as

Question 15

The preparation of the statement of cash flows using the indirect method involves the conversion from the accrual basis to the cash basis.

Accepted Answer

A) True 
 B)False

Question 16

Negative cash flow from investing activities on the statement of cash flows means that a company has ________.

Accepted Answer

A) paid a large cash dividend to shareholders 
B) paid more for operating expenses than it collected from customers 
C) sold additional shares of common stock 
D) bought additional property,plant and equipment 
A) paid a large cash dividend to shareholders 
B) paid more for operating expenses than it collected from customers 
C) sold additional shares of common stock 
D) bought additional property,plant and equipment

Question 17

Only companies seeking loans from a bank need to prepare a cash budget.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following events is not a source of cash?

Accepted Answer

A) amortization of a copyright 
B) receipt of loan proceeds 
C) sale of treasury stock 
D) collection of an account receivable 
A) amortization of a copyright 
B) receipt of loan proceeds 
C) sale of treasury stock 
D) collection of an account receivable

Question 19

Match between columns
                        Premises: section of the statement of cash flows,which includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business
managers use this information internally to anticipate any cash shortages
cash from operating activities minus dividends and capital expenditures
section of the statement of cash flows,which includes all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners
method of preparing the operating activities section of the statement of cash flows,which shows every cash inflow and every cash outflow
managers use this information internally to anticipate any cash shortages
section of the statement of cash flows,which includes all cash receipts and all cash disbursements for long-term business assets

Accepted Answer

The Answer of direct method and indirect method and cash is...

Question 20

Clean Dirt,Inc.had $8,000 of salaries payable at December 31,2010.During 2011,Clean Dirt's salary expense was $60,000.At December 31,2011,Clean Dirt's statement of cash flows showed cash paid for salaries of $(63,000).How much was Clean Dirt's salaries payable balance on its December 31,2011 balance sheet?

Accepted Answer

A) $5,000 
B) $11,000 
C) $13,000 
D) $3,000 
A) $5,000 
B) $11,000 
C) $13,000 
D) $3,000

A use of cash for investing activities is ________.

The following information is from X,Inc.'s December 31,2011 annual report: Note: X,Inc.does not sell to its customers on account; it collects cash from its customers in advance. Cash paid for insurance on X,Inc.'s statement of cash flows equals ________.

Team Shirts,Inc.sold a piece of equipment for $13,400.The book value of the equipment was $14,000.The original cost of the equipment was $19,000.A loss on the sale of $600 was reported.The amount of cash reported on the statement of cash flows was ________.

Repayment of a loan is a(n)________ activity on the statement of cash flows.

Team Shirts,Inc.borrowed $10,000 from First Bank of England.During the year,Team Shirts paid $800 in interest to First Bank of England.How is the accounting information for these transactions reported on the statement of cash flows?

The following information is available for two different retailers,both of whom began business this year: Which company would you expect to have high interest expense?

The direct method of preparing the operating activities section of the statement of cash flows ________.

Use the following information from The Mane Event,Inc.,to prepare the financing activities section of the statement of cash flows for the year ended December 31,2011.

Team Shirts,Inc.paid $300 worth of cash dividends to shareholders.How is this amount reported on the statement of cash flows?

The preparation of the statement of cash flows using the indirect method involves the conversion from the accrual basis to the cash basis.

Negative cash flow from investing activities on the statement of cash flows means that a company has ________.

Only companies seeking loans from a bank need to prepare a cash budget.

Which of the following events is not a source of cash?

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters

Exam 9: Preparing and Analyzing the Statement of Cash Flows

A use of cash for investing activities is ________.

The following information is from X,Inc.'s December 31,2011 annual report: Note: X,Inc.does not sell to its customers on account; it collects cash from its customers in advance. Cash paid for insurance on X,Inc.'s statement of cash flows equals ________.

Team Shirts,Inc.sold a piece of equipment for $13,400.The book value of the equipment was $14,000.The original cost of the equipment was $19,000.A loss on the sale of $600 was reported.The amount of cash reported on the statement of cash flows was ________.

Repayment of a loan is a(n)________ activity on the statement of cash flows.

Team Shirts,Inc.borrowed $10,000 from First Bank of England.During the year,Team Shirts paid $800 in interest to First Bank of England.How is the accounting information for these transactions reported on the statement of cash flows?

The following information is available for two different retailers,both of whom began business this year: Which company would you expect to have high interest expense?

The direct method of preparing the operating activities section of the statement of cash flows ________.

Use the following information from The Mane Event,Inc.,to prepare the financing activities section of the statement of cash flows for the year ended December 31,2011.

Team Shirts,Inc.paid $300 worth of cash dividends to shareholders.How is this amount reported on the statement of cash flows?

The preparation of the statement of cash flows using the indirect method involves the conversion from the accrual basis to the cash basis.

Negative cash flow from investing activities on the statement of cash flows means that a company has ________.

Only companies seeking loans from a bank need to prepare a cash budget.

Which of the following events is not a source of cash?

Business: Whats It All About

Qualities of Accounting Information

Accruals and Deferrals: Timing Is Everything in Accounting

Payment for Goods and Services: Cash and Accounts Receivable

The Purchase and Sale of Inventory

Acquisition and Use of Long-Term Assets

Accounting for Liabilities

Accounting for Shareholders Equity

Using Financial Statement Analysis to Evaluate Firm Performance

Quality of Earnings, corporate Governance, and Ifrs

Filters