Exam 9: Preparing and Analyzing the Statement of Cash Flows

The only difference between the direct and indirect methods used for the preparation of the statement of cash flows is the way cash from operating activities is calculated.

(True/False)

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Question 61

Which of the following statements is true?

(Multiple Choice)

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Question 62

A cash budget ________.

(Multiple Choice)

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Question 63

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

(Multiple Choice)

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Question 64

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

(Multiple Choice)

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Question 65

Which of the following events is not a cash flow?

(Multiple Choice)

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Question 66

The following information is from Daffy Duct,Inc.'s December 31,2011 annual report: Net cash from operating activities on Daffy Duct's statement of cash flows equals ________.

(Multiple Choice)

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Question 67

The difference between the direct and indirect methods applies only to the ________ activities section(s)of the statement of cash flows.

(Multiple Choice)

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Question 68

At the end of the year,Krupt,Inc.added the payroll checks that were distributed to employees but had not yet cleared the bank back to its Cash account.Which sections of the statement of cash flows will be affected and how? Does this treatment seem ethical?

(Essay)

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Question 69

A truck cost $55,000 and had accumulated depreciation of $45,000 when it was sold for cash at a gain of $5,000.Proceeds from the sale of the truck are 1.$ and are 2.a(n) activity.

(Short Answer)

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Question 70

A source of cash from operating activities is ________.

(Multiple Choice)

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Question 71

A statement of cash flows based on the direct method is prepared by converting every number on the income statement to its cash amount.

(True/False)

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Question 72

Free cash flow is cash from operating activities minus dividends and minus capital expenditures.

(True/False)

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Question 73

A negative cash flow from operating activities indicates the company is expanding.

(True/False)

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Question 74

The statement of cash flows shows all of the income a company earned during a period and the dividends it has declared.

(True/False)

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Question 75

The direct method for the preparation of the statement of cash flows ________.

(Multiple Choice)

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Question 76

Cash used for investing activities includes cash ________.

(Multiple Choice)

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Question 77

Use the following information from Artizan,Inc.'s computerized accounting information system to prepare the investing activities section of the statement of cash flows for May.

(Essay)

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Question 78

Williston Skateboards had net cash from operating activities of $33,780.During the month,the firm paid no dividends and $435 in interest.Williston Skateboards also spent $12,740 on office equipment.Free cash flow for the month was ________.

(Multiple Choice)

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Question 79

During Clean Dirt,Inc.'s first year of business,salary expense was $60,000.At the end of its first year of business,Clean Dirt's first balance sheet showed $5,000 of salaries payable.How much did Clean Dirt pay in cash for salaries during its first year of business?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 277

The only difference between the direct and indirect methods used for the preparation of the statement of cash flows is the way cash from operating activities is calculated.

Which of the following statements is true?

A cash budget ________.

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

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

Which of the following events is not a cash flow?

The following information is from Daffy Duct,Inc.'s December 31,2011 annual report: Net cash from operating activities on Daffy Duct's statement of cash flows equals ________.

The difference between the direct and indirect methods applies only to the ________ activities section(s)of the statement of cash flows.

At the end of the year,Krupt,Inc.added the payroll checks that were distributed to employees but had not yet cleared the bank back to its Cash account.Which sections of the statement of cash flows will be affected and how? Does this treatment seem ethical?

A truck cost $55,000 and had accumulated depreciation of $45,000 when it was sold for cash at a gain of $5,000.Proceeds from the sale of the truck are 1.$ and are 2.a(n) activity.

A source of cash from operating activities is ________.

A statement of cash flows based on the direct method is prepared by converting every number on the income statement to its cash amount.

Free cash flow is cash from operating activities minus dividends and minus capital expenditures.

A negative cash flow from operating activities indicates the company is expanding.

The statement of cash flows shows all of the income a company earned during a period and the dividends it has declared.

The direct method for the preparation of the statement of cash flows ________.

Cash used for investing activities includes cash ________.

Use the following information from Artizan,Inc.'s computerized accounting information system to prepare the investing activities section of the statement of cash flows for May.

Williston Skateboards had net cash from operating activities of $33,780.During the month,the firm paid no dividends and $435 in interest.Williston Skateboards also spent $12,740 on office equipment.Free cash flow for the month was ________.

During Clean Dirt,Inc.'s first year of business,salary expense was $60,000.At the end of its first year of business,Clean Dirt's first balance sheet showed $5,000 of salaries payable.How much did Clean Dirt pay in cash for salaries during its first year of business?

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

The only difference between the direct and indirect methods used for the preparation of the statement of cash flows is the way cash from operating activities is calculated.

Which of the following statements is true?

A cash budget ________.

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

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

Which of the following events is not a cash flow?

The following information is from Daffy Duct,Inc.'s December 31,2011 annual report: Net cash from operating activities on Daffy Duct's statement of cash flows equals ________.

The difference between the direct and indirect methods applies only to the ________ activities section(s)of the statement of cash flows.

At the end of the year,Krupt,Inc.added the payroll checks that were distributed to employees but had not yet cleared the bank back to its Cash account.Which sections of the statement of cash flows will be affected and how? Does this treatment seem ethical?

A truck cost $55,000 and had accumulated depreciation of $45,000 when it was sold for cash at a gain of $5,000.Proceeds from the sale of the truck are 1.$________ and are 2.a(n)________ activity.

A source of cash from operating activities is ________.

A statement of cash flows based on the direct method is prepared by converting every number on the income statement to its cash amount.

Free cash flow is cash from operating activities minus dividends and minus capital expenditures.

A negative cash flow from operating activities indicates the company is expanding.

The statement of cash flows shows all of the income a company earned during a period and the dividends it has declared.

The direct method for the preparation of the statement of cash flows ________.

Cash used for investing activities includes cash ________.

Use the following information from Artizan,Inc.'s computerized accounting information system to prepare the investing activities section of the statement of cash flows for May.

Williston Skateboards had net cash from operating activities of $33,780.During the month,the firm paid no dividends and $435 in interest.Williston Skateboards also spent $12,740 on office equipment.Free cash flow for the month was ________.

During Clean Dirt,Inc.'s first year of business,salary expense was $60,000.At the end of its first year of business,Clean Dirt's first balance sheet showed $5,000 of salaries payable.How much did Clean Dirt pay in cash for salaries during its first year of business?

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 truck cost $55,000 and had accumulated depreciation of $45,000 when it was sold for cash at a gain of $5,000.Proceeds from the sale of the truck are 1.$ and are 2.a(n) activity.