Question 1

Negative 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 2

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 collected from customers on ABC,Inc.'s statement of cash flows equals ________.

Accepted Answer

A) $800,000 
B) $802,000 
C) $798,000 
D) $810,000 
A) $800,000 
B) $802,000 
C) $798,000 
D) $810,000

Question 3

Cash from operating activities includes cash ________.

Accepted Answer

A) collected from customers 
B) paid for land 
C) received from loans 
D) paid for dividends 
A) collected from customers 
B) paid for land 
C) received from loans 
D) paid for dividends

Question 4

On January 1,2011,Company Z had accounts receivable of $5,000.During the year,Company Z sold $100,000 of merchandise to credit customers.At December 31,2011,Company Z had accounts receivable of $4,000.How much cash did the company collect from credit customers during the year?

Accepted Answer

A) $105,000 
B) $101,000 
C) $99,000 
D) $95,000 
A) $105,000 
B) $101,000 
C) $99,000 
D) $95,000

Question 5

Cash from investing activities includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business.

Accepted Answer

A) True 
 B)False

Question 6

Cash from financing activities includes all cash receipts and all cash disbursements for loan principal,as well as contributions from,and distributions to,owners.

Accepted Answer

A) True 
 B)False

Question 7

Team Shirts,Inc.purchased a stamping machine for $21,000 from a German company.Depreciation for the machine was $4,200 for the year.How is the accounting information for the stamping machine reported on the statement of cash flows prepared using the indirect method?

Accepted Answer

The $4,200 would be added to net income

Question 8

Why would a company cut its cash dividends? Is it ethical to cut the dividends?

Accepted Answer

A company would cut its cash dividends i

Question 9

To prepare the statement of cash flows using the indirect method ________ net income.

Accepted Answer

A) a decrease in inventory is subtracted from 
B) a purchase of a machine is subtracted from 
C) cash paid for dividends is added to 
D) a decrease in accounts payable is subtracted from 
A) a decrease in inventory is subtracted from 
B) a purchase of a machine is subtracted from 
C) cash paid for dividends is added to 
D) a decrease in accounts payable is subtracted from

Question 10

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

Accepted Answer

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

Question 11

Janna Bronson is trying to decide whether or not to prepare the statement of cash flows using the direct method.Explain to Janna the advantages and disadvantages of using this method.

Accepted Answer

The direct method is the method preferre

Question 12

Team Shirts,Inc.purchased $10,000 worth of treasury stock,paid $5,000 of its accounts payable,and paid $500 in dividends.The amount of net cash from (or used)for FINANCING activities is ________.

Accepted Answer

A) $(10,500) 
B) $(13,500) 
C) $10,500 
D) $13,500 
A) $(10,500) 
B) $(13,500) 
C) $10,500 
D) $13,500

Question 13

Cash from operating activities includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business.

Accepted Answer

A) True 
 B)False

Question 14

The following information is from Cashew,Inc.'s December 31,2011 annual report:   Cash paid for salaries on Cashew,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

Question 15

Team Shirts,Inc.sold a piece of equipment for $16,000.The carrying value of the equipment was $17,000.The original cost of the equipment was $25,000.A loss on the sale of $1,000 was reported.The amount of net cash from (or used)for INVESTING activities is ________.

Accepted Answer

A) $16,000 
B) $17,000 
C) $(1,000) 
D) $(25,000) 
A) $16,000 
B) $17,000 
C) $(1,000) 
D) $(25,000)

Question 16

To prepare the statement of cash flows using the indirect method ________.

Accepted Answer

A) an increase in inventory is subtracted from net income 
B) a purchase of a machine is added to net income 
C) cash paid for dividends is subtracted from net income 
D) an increase in accounts payable is subtracted from net income 
A) an increase in inventory is subtracted from net income 
B) a purchase of a machine is added to net income 
C) cash paid for dividends is subtracted from net income 
D) an increase in accounts payable is subtracted from net income

Question 17

The FASB requires that a company using the indirect method must provide a reconciliation between net income and cash from operating activities.

Accepted Answer

A) True 
 B)False

Question 18

Analysts use the statement of cash flows to measure ________.

Accepted Answer

A) the profitability of a company 
B) the amount of the company's obligations 
C) the amount of excess cash generated by operating activities 
D) all of these 
A) the profitability of a company 
B) the amount of the company's obligations 
C) the amount of excess cash generated by operating activities 
D) all of these

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Match between columns
                        Premises: purchase of a stamping machine
collection of accounts receivable
purchase of equipment by issuing a long-term note payable
issuance of stock

Accepted Answer

The Answer of operating activities and noncash item and investing is...

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

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 collected from customers on ABC,Inc.'s statement of cash flows equals ________.

Cash from operating activities includes cash ________.

On January 1,2011,Company Z had accounts receivable of $5,000.During the year,Company Z sold $100,000 of merchandise to credit customers.At December 31,2011,Company Z had accounts receivable of $4,000.How much cash did the company collect from credit customers during the year?

Cash from investing activities includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business.

Cash from financing activities includes all cash receipts and all cash disbursements for loan principal,as well as contributions from,and distributions to,owners.

Team Shirts,Inc.purchased a stamping machine for $21,000 from a German company.Depreciation for the machine was $4,200 for the year.How is the accounting information for the stamping machine reported on the statement of cash flows prepared using the indirect method?

Why would a company cut its cash dividends? Is it ethical to cut the dividends?

To prepare the statement of cash flows using the indirect method ________ net income.

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

Janna Bronson is trying to decide whether or not to prepare the statement of cash flows using the direct method.Explain to Janna the advantages and disadvantages of using this method.

Team Shirts,Inc.purchased $10,000 worth of treasury stock,paid $5,000 of its accounts payable,and paid $500 in dividends.The amount of net cash from (or used)for FINANCING activities is ________.

Cash from operating activities includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business.

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

Team Shirts,Inc.sold a piece of equipment for $16,000.The carrying value of the equipment was $17,000.The original cost of the equipment was $25,000.A loss on the sale of $1,000 was reported.The amount of net cash from (or used)for INVESTING activities is ________.

To prepare the statement of cash flows using the indirect method ________.

The FASB requires that a company using the indirect method must provide a reconciliation between net income and cash from operating activities.

Analysts use the statement of cash flows to measure ________.

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

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

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

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 collected from customers on ABC,Inc.'s statement of cash flows equals ________.

Cash from operating activities includes cash ________.

On January 1,2011,Company Z had accounts receivable of $5,000.During the year,Company Z sold $100,000 of merchandise to credit customers.At December 31,2011,Company Z had accounts receivable of $4,000.How much cash did the company collect from credit customers during the year?

Cash from investing activities includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business.

Cash from financing activities includes all cash receipts and all cash disbursements for loan principal,as well as contributions from,and distributions to,owners.

Team Shirts,Inc.purchased a stamping machine for $21,000 from a German company.Depreciation for the machine was $4,200 for the year.How is the accounting information for the stamping machine reported on the statement of cash flows prepared using the indirect method?

Why would a company cut its cash dividends? Is it ethical to cut the dividends?

To prepare the statement of cash flows using the indirect method ________ net income.

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

Janna Bronson is trying to decide whether or not to prepare the statement of cash flows using the direct method.Explain to Janna the advantages and disadvantages of using this method.

Team Shirts,Inc.purchased $10,000 worth of treasury stock,paid $5,000 of its accounts payable,and paid $500 in dividends.The amount of net cash from (or used)for FINANCING activities is ________.

Cash from operating activities includes all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business.

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

Team Shirts,Inc.sold a piece of equipment for $16,000.The carrying value of the equipment was $17,000.The original cost of the equipment was $25,000.A loss on the sale of $1,000 was reported.The amount of net cash from (or used)for INVESTING activities is ________.

To prepare the statement of cash flows using the indirect method ________.

The FASB requires that a company using the indirect method must provide a reconciliation between net income and cash from operating activities.

Analysts use the statement of cash flows to measure ________.

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

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