Exam 9: Preparing and Analyzing the Statement of Cash Flows

Team Shirts,Inc.had $12,000 of insurance expense and $1,000 of prepaid insurance at the end of the year.The cash paid for insurance was $12,800.Calculate the amount of prepaid insurance at the beginning of the year.

(Short Answer)

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Question 41

Cash paid for salaries will be less than the salary expense for the same period if the salary payable balance increases.

(True/False)

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Question 42

The indirect method of preparing the statement of cash flows ________.

(Multiple Choice)

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Question 43

Match each of the following line items with the type of activity. -purchase of land in exchange for stock

(Multiple Choice)

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Question 44

On January 1,2011,Company X had accounts receivable of $20,000.During the year,Company X sold $100,000 of merchandise to credit customers.At December 31,2011,Company X had accounts receivable of $50,000.How much cash did the company collect from credit customers during the year?

(Multiple Choice)

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Question 45

Team Shirts,Inc.paid $3,250 for advertising.This is an ________ activities.

(Multiple Choice)

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Question 46

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.All team members will receive the same grade. Answer the following questions using the Statement of Cash Flows for Fixzit,Inc.below:

(Essay)

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Question 47

Negative cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

(Multiple Choice)

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Question 48

The statement of cash flows shows all the cash a company has received and all the cash a company has paid during the accounting period.

(True/False)

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Question 49

Analysts use the statement of cash flows to measure ________.

(Multiple Choice)

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Question 50

To prepare the statement of cash flows using the indirect method,dividends paid are ________.

(Multiple Choice)

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Question 51

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

(Multiple Choice)

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Question 52

The following information is from Avatar,Inc.'s December 31,2011 annual report: Note: Avatar always collects cash from its customers in advance. Cash paid for insurance on Avatar,Inc.'s statement of cash flows equals ________.

(Multiple Choice)

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Question 53

A positive cash flow from investing activities indicates the company is expanding.

(True/False)

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Question 54

A source of cash from financing activities is ________.

(Multiple Choice)

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Question 55

A building cost $550,000 and had accumulated depreciation of $450,000 when it was sold for cash at a loss of $30,000.Proceeds from the sale of the building are: 1.$ and are 2.a(n) activity.

(Short Answer)

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Question 56

To prepare the statement of cash flows using the indirect method,depreciation expense is ________.

(Multiple Choice)

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Question 57

The following information is available for two different retailers,both of whom began business this year: Which company appears to be purchasing long-term assets?

(Multiple Choice)

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Question 58

Positive cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

(Multiple Choice)

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Question 59

purchase of land in exchange for stock

(Multiple Choice)

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(41)

Question 60

Showing 41 - 60 of 277

Team Shirts,Inc.had $12,000 of insurance expense and $1,000 of prepaid insurance at the end of the year.The cash paid for insurance was $12,800.Calculate the amount of prepaid insurance at the beginning of the year.

Cash paid for salaries will be less than the salary expense for the same period if the salary payable balance increases.

The indirect method of preparing the statement of cash flows ________.

Match each of the following line items with the type of activity. -purchase of land in exchange for stock

On January 1,2011,Company X had accounts receivable of $20,000.During the year,Company X sold $100,000 of merchandise to credit customers.At December 31,2011,Company X had accounts receivable of $50,000.How much cash did the company collect from credit customers during the year?

Team Shirts,Inc.paid $3,250 for advertising.This is an ________ activities.

Negative cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

The statement of cash flows shows all the cash a company has received and all the cash a company has paid during the accounting period.

Analysts use the statement of cash flows to measure ________.

To prepare the statement of cash flows using the indirect method,dividends paid are ________.

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

The following information is from Avatar,Inc.'s December 31,2011 annual report: Note: Avatar always collects cash from its customers in advance. Cash paid for insurance on Avatar,Inc.'s statement of cash flows equals ________.

A positive cash flow from investing activities indicates the company is expanding.

A source of cash from financing activities is ________.

A building cost $550,000 and had accumulated depreciation of $450,000 when it was sold for cash at a loss of $30,000.Proceeds from the sale of the building are: 1.$ and are 2.a(n) activity.

To prepare the statement of cash flows using the indirect method,depreciation expense is ________.

The following information is available for two different retailers,both of whom began business this year: Which company appears to be purchasing long-term assets?

Positive cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

purchase of land in exchange for stock

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

Team Shirts,Inc.had $12,000 of insurance expense and $1,000 of prepaid insurance at the end of the year.The cash paid for insurance was $12,800.Calculate the amount of prepaid insurance at the beginning of the year.

Cash paid for salaries will be less than the salary expense for the same period if the salary payable balance increases.

The indirect method of preparing the statement of cash flows ________.

Match each of the following line items with the type of activity. -purchase of land in exchange for stock

On January 1,2011,Company X had accounts receivable of $20,000.During the year,Company X sold $100,000 of merchandise to credit customers.At December 31,2011,Company X had accounts receivable of $50,000.How much cash did the company collect from credit customers during the year?

Team Shirts,Inc.paid $3,250 for advertising.This is an ________ activities.

Negative cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

The statement of cash flows shows all the cash a company has received and all the cash a company has paid during the accounting period.

Analysts use the statement of cash flows to measure ________.

To prepare the statement of cash flows using the indirect method,dividends paid are ________.

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

The following information is from Avatar,Inc.'s December 31,2011 annual report: Note: Avatar always collects cash from its customers in advance. Cash paid for insurance on Avatar,Inc.'s statement of cash flows equals ________.

A positive cash flow from investing activities indicates the company is expanding.

A source of cash from financing activities is ________.

A building cost $550,000 and had accumulated depreciation of $450,000 when it was sold for cash at a loss of $30,000.Proceeds from the sale of the building are: 1.$________ and are 2.a(n)________ activity.

To prepare the statement of cash flows using the indirect method,depreciation expense is ________.

The following information is available for two different retailers,both of whom began business this year: Which company appears to be purchasing long-term assets?

Positive cash flow from financing activities on the statement of cash flows most likely indicates a company is ________.

purchase of land in exchange for stock

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

A building cost $550,000 and had accumulated depreciation of $450,000 when it was sold for cash at a loss of $30,000.Proceeds from the sale of the building are: 1.$ and are 2.a(n) activity.