Question 1

A source of cash from investing activities is ________.

Accepted Answer

A) proceeds from a loan 
B) collection of an account receivable 
C) cash received from the sale of used equipment 
D) cash received from the sale of treasury stock 
A) proceeds from a loan 
B) collection of an account receivable 
C) cash received from the sale of used equipment 
D) cash received from the sale of treasury stock

Question 2

Positive cash flow from financing 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 3

Explain the differences between operating,investing,and financing activities.

Accepted Answer

Operating activities are the activities

Question 4

Misclassifying cash from long-term borrowings as cash collected from customers will make the cash from investing activities higher than it should.

Accepted Answer

A) True 
 B)False

Question 5

Cash budgets are required by ________.

Accepted Answer

A) U)S.GAAP 
B) IFRS 
C) both U.S.GAAP and IFRS 
D) neither U.S.GAAP nor IFRS 
A) U)S.GAAP 
B) IFRS 
C) both U.S.GAAP and IFRS 
D) neither U.S.GAAP nor IFRS

Question 6

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

Accepted Answer

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

Question 7

A company that has a negative cash flow from operating activities and a positive cash flow from investing activities may be in poor financial health and having to sell its long-term assets to pays its current liabilities.

Accepted Answer

A) True 
 B)False

Question 8

The following information is from Cogs,Inc.'s December 31,2011 annual report:   Cash paid to vendors on Cogs,Inc.'s statement of cash flows equals ________.

Accepted Answer

A) $100,000 
B) $110,000 
C) $104,000 
D) $96,000 
A) $100,000 
B) $110,000 
C) $104,000 
D) $96,000

Question 9

The statement of cash flows shows all of the cash a company has received and all the cash a company has paid from operating,investing,and manufacturing during the accounting period.

Accepted Answer

A) True 
 B)False

Question 10

The statement of cash flows is required by ________.

Accepted Answer

A) U)S.GAAP only 
B) IFRS only 
C) both U.S.GAAP and IFRS 
D) neither U.S.GAAP nor IFRS 
A) U)S.GAAP only 
B) IFRS only 
C) both U.S.GAAP and IFRS 
D) neither U.S.GAAP nor IFRS

Question 11

The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.

Accepted Answer

A) net increase (or decrease)in total cash 
B) net cash inflows (or outflows)from operating activities 
C) net cash inflows (or outflows)from investing activities 
D) net increase (or decrease)in retained earnings 
A) net increase (or decrease)in total cash 
B) net cash inflows (or outflows)from operating activities 
C) net cash inflows (or outflows)from investing activities 
D) net increase (or decrease)in retained earnings

Question 12

The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.

Accepted Answer

A) net cash inflows (or outflows)from financing activities 
B) net cash inflows (or outflows)from free cash flows 
C) net cash inflows (or outflows)from operating activities 
D) net cash inflows (or outflows)from investing activities 
A) net cash inflows (or outflows)from financing activities 
B) net cash inflows (or outflows)from free cash flows 
C) net cash inflows (or outflows)from operating activities 
D) net cash inflows (or outflows)from investing activities

Question 13

The statement of cash flows is designed to ________.

Accepted Answer

A) reconcile the differences between the beginning and ending balances in the cash account 
B) reconcile the differences between net income and the ending cash balance 
C) explain the difference between the sources and uses of cash 
D) explain the changes in assets 
A) reconcile the differences between the beginning and ending balances in the cash account 
B) reconcile the differences between net income and the ending cash balance 
C) explain the difference between the sources and uses of cash 
D) explain the changes in assets

Question 14

The cash budget ________.

Accepted Answer

A) is one of the financial statements required by the SEC and FASB 
B) is used by management to anticipate any cash flow shortages 
C) has three sections: operating,investing,and financing 
D) all of these 
A) is one of the financial statements required by the SEC and FASB 
B) is used by management to anticipate any cash flow shortages 
C) has three sections: operating,investing,and financing 
D) all of these

Question 15

Free cash flows measures ________.

Accepted Answer

A) the ability of a company to raise money through the sale of stock 
B) the amount of cash available to pay dividends 
C) the amount of excess cash generated by operating activities 
D) a firm's ability to engage in long-term investment opportunities 
A) the ability of a company to raise money through the sale of stock 
B) the amount of cash available to pay dividends 
C) the amount of excess cash generated by operating activities 
D) a firm's ability to engage in long-term investment opportunities

Question 16

Indicate whether each of the following items is either a cash inflow or outflow and in which section of the statement of cash flows it would be reported.

Accepted Answer

The answer of Indicate whether each of the following items...

Question 17

Preparation of the cash budget starts ________.

Accepted Answer

A) with net income and makes adjustments for all the items that are not cash 
B) by converting every number on the income statement to its cash amount 
C) by estimating the sources of cash and the uses of cash 
D) with cash collected from customers 
A) with net income and makes adjustments for all the items that are not cash 
B) by converting every number on the income statement to its cash amount 
C) by estimating the sources of cash and the uses of cash 
D) with cash collected from customers

Question 18

Why is evaluating a company's cash flow important for analysts?

Accepted Answer

Adequate cash flow is necessary for a co

Question 19

If a company uses the indirect method of calculating cash from operating activities,its statement of cash flows begins with cash collected from customers.

Accepted Answer

A) True 
 B)False

Question 20

Regardless of whether the statement of cash flows was prepared using the direct method or the indirect method,Proceeds from the sale of land is reported as a line item under investing activities.

Accepted Answer

A) True 
 B)False

A source of cash from investing activities is ________.

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

Explain the differences between operating,investing,and financing activities.

Misclassifying cash from long-term borrowings as cash collected from customers will make the cash from investing activities higher than it should.

Cash budgets are required by ________.

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

A company that has a negative cash flow from operating activities and a positive cash flow from investing activities may be in poor financial health and having to sell its long-term assets to pays its current liabilities.

The following information is from Cogs,Inc.'s December 31,2011 annual report: Cash paid to vendors on Cogs,Inc.'s statement of cash flows equals ________.

The statement of cash flows shows all of the cash a company has received and all the cash a company has paid from operating,investing,and manufacturing during the accounting period.

The statement of cash flows is required by ________.

The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.

The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.

The statement of cash flows is designed to ________.

The cash budget ________.

Free cash flows measures ________.

Indicate whether each of the following items is either a cash inflow or outflow and in which section of the statement of cash flows it would be reported.

Preparation of the cash budget starts ________.

Why is evaluating a company's cash flow important for analysts?

If a company uses the indirect method of calculating cash from operating activities,its statement of cash flows begins with cash collected from customers.

Regardless of whether the statement of cash flows was prepared using the direct method or the indirect method,Proceeds from the sale of land is reported as a line item under investing activities.

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 source of cash from investing activities is ________.

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

Explain the differences between operating,investing,and financing activities.

Misclassifying cash from long-term borrowings as cash collected from customers will make the cash from investing activities higher than it should.

Cash budgets are required by ________.

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

A company that has a negative cash flow from operating activities and a positive cash flow from investing activities may be in poor financial health and having to sell its long-term assets to pays its current liabilities.

The following information is from Cogs,Inc.'s December 31,2011 annual report: Cash paid to vendors on Cogs,Inc.'s statement of cash flows equals ________.

The statement of cash flows shows all of the cash a company has received and all the cash a company has paid from operating,investing,and manufacturing during the accounting period.

The statement of cash flows is required by ________.

The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.

The preparation of the statement of cash flows includes the calculation of all of the following EXCEPT the ________.

The statement of cash flows is designed to ________.

The cash budget ________.

Free cash flows measures ________.

Indicate whether each of the following items is either a cash inflow or outflow and in which section of the statement of cash flows it would be reported.

Preparation of the cash budget starts ________.

Why is evaluating a company's cash flow important for analysts?

If a company uses the indirect method of calculating cash from operating activities,its statement of cash flows begins with cash collected from customers.

Regardless of whether the statement of cash flows was prepared using the direct method or the indirect method,Proceeds from the sale of land is reported as a line item under investing activities.

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