Question 1

Managers use a cash budget to anticipate any future cash shortages.

Accepted Answer

A) True 
 B)False

Question 2

A long-term asset purchased by issuing a note is disclosed in a note on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 3

Depreciation expense,using the indirect method of preparing the statement of cash flows,is ________.

Accepted Answer

A) added to net income 
B) subtracted from net income 
C) subtracted from investing activities 
D) added to investing activities 
A) added to net income 
B) subtracted from net income 
C) subtracted from investing activities 
D) added to investing activities

Question 4

Use the following information from The Mane Event,Inc.,to prepare the investing 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 5

The sale of a long-term asset is reported on the statement of cash flows as an increase to cash from investing activities.The increase is equal to the cost of the asset.

Accepted Answer

A) True 
 B)False

Question 6

A positive cash flow from operating activities indicates the company is healthy.

Accepted Answer

A) True 
 B)False

Question 7

Match between columns
                        Premises: cash received from a loan
cash paid to employees
cash received from customers for sales
cash paid to vendors
cash paid for new equipment

Accepted Answer

The Answer of cash from investing activities and cash from is...

Question 8

A statement NOT required by FASB to comply with GAAP is ________.

Accepted Answer

A) a balance sheet 
B) an income statement 
C) a statement of cash flows 
D) a cash budget 
A) a balance sheet 
B) an income statement 
C) a statement of cash flows 
D) a cash budget

Question 9

The statement of cash flows is one of the four financial statements a company must prepare as part of GAAP.

Accepted Answer

A) True 
 B)False

Question 10

For each section of the statement of cash flows shown below,indicate an unhealthy company that has to pay its current liabilities by selling some of its long-term assets and borrowing from the bank.Use a plus for net cash inflow and minus for net cash outflow:

Accepted Answer

The answer of For each section of the statement of...

Question 11

Cash paid for interest payments is characterized as an ________ activities.

Accepted Answer

A) inflow from investing 
B) outflow for financing 
C) inflow from operating 
D) outflow for operating 
A) inflow from investing 
B) outflow for financing 
C) inflow from operating 
D) outflow for operating

Question 12

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

Accepted Answer

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

Question 13

To prepare the statement of cash flows using the indirect method,interest income is ________.

Accepted Answer

A) added to net income 
B) subtracted from net income 
C) already included in net income 
D) included as an item in the financing section 
A) added to net income 
B) subtracted from net income 
C) already included in net income 
D) included as an item in the financing section

Question 14

If a company were to manipulate the statement of cash flows to please analysts,it would most likely report cash paid ________.

Accepted Answer

A) for operating expenses as capital expenditures 
B) for capital expenditures as operating expenses 
C) for repayment of loans as capital expenditures 
D) for repayment of loans as operating expenses 
A) for operating expenses as capital expenditures 
B) for capital expenditures as operating expenses 
C) for repayment of loans as capital expenditures 
D) for repayment of loans as operating expenses

Question 15

Cash dividends paid to shareholders 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 16

Match between columns
                        Premises: purchase of a building in exchange for stock
payment of interest
recognition of amortization expense
purchase of office supplies
issuance of stock

Accepted Answer

The Answer of investing activities and operating activities and financing is...

Question 17

A statement of cash flows is a detailed plan of a company's estimated cash receipts and estimated cash payments.

Accepted Answer

A) True 
 B)False

Question 18

Use the following information from Artizan,Inc.to prepare the statement of cash flows for May using the indirect method.

Accepted Answer

The answer of Use the following information from Artizan,Inc.to prepare...

Question 19

Match each of the following line items with the type of activity.

-sale of a used delivery van

Accepted Answer

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

Question 20

A continued trend of ________ may indicate a company is in poor financial health.

Accepted Answer

A) positive cash flow from financing activities 
B) positive cash flow from operating activities 
C) negative cash flow from operating activities 
D) negative cash flow from investing activities 
A) positive cash flow from financing activities 
B) positive cash flow from operating activities 
C) negative cash flow from operating activities 
D) negative cash flow from investing activities

Managers use a cash budget to anticipate any future cash shortages.

A long-term asset purchased by issuing a note is disclosed in a note on the statement of cash flows.

Depreciation expense,using the indirect method of preparing the statement of cash flows,is ________.

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

The sale of a long-term asset is reported on the statement of cash flows as an increase to cash from investing activities.The increase is equal to the cost of the asset.

A positive cash flow from operating activities indicates the company is healthy.

A statement NOT required by FASB to comply with GAAP is ________.

The statement of cash flows is one of the four financial statements a company must prepare as part of GAAP.

For each section of the statement of cash flows shown below,indicate an unhealthy company that has to pay its current liabilities by selling some of its long-term assets and borrowing from the bank.Use a plus for net cash inflow and minus for net cash outflow:

Cash paid for interest payments is characterized as an ________ activities.

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

To prepare the statement of cash flows using the indirect method,interest income is ________.

If a company were to manipulate the statement of cash flows to please analysts,it would most likely report cash paid ________.

Cash dividends paid to shareholders is a(n)________ activity on the statement of cash flows.

A statement of cash flows is a detailed plan of a company's estimated cash receipts and estimated cash payments.

Use the following information from Artizan,Inc.to prepare the statement of cash flows for May using the indirect method.

Match each of the following line items with the type of activity. -sale of a used delivery van

A continued trend of ________ may indicate a company is in poor financial health.

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

Managers use a cash budget to anticipate any future cash shortages.

A long-term asset purchased by issuing a note is disclosed in a note on the statement of cash flows.

Depreciation expense,using the indirect method of preparing the statement of cash flows,is ________.

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

The sale of a long-term asset is reported on the statement of cash flows as an increase to cash from investing activities.The increase is equal to the cost of the asset.

A positive cash flow from operating activities indicates the company is healthy.

A statement NOT required by FASB to comply with GAAP is ________.

The statement of cash flows is one of the four financial statements a company must prepare as part of GAAP.

For each section of the statement of cash flows shown below,indicate an unhealthy company that has to pay its current liabilities by selling some of its long-term assets and borrowing from the bank.Use a plus for net cash inflow and minus for net cash outflow:

Cash paid for interest payments is characterized as an ________ activities.

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

To prepare the statement of cash flows using the indirect method,interest income is ________.

If a company were to manipulate the statement of cash flows to please analysts,it would most likely report cash paid ________.

Cash dividends paid to shareholders is a(n)________ activity on the statement of cash flows.

A statement of cash flows is a detailed plan of a company's estimated cash receipts and estimated cash payments.

Use the following information from Artizan,Inc.to prepare the statement of cash flows for May using the indirect method.

Match each of the following line items with the type of activity. -sale of a used delivery van

A continued trend of ________ may indicate a company is in poor financial health.

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