Question 1

Which of the following statements is true?

Accepted Answer

A) Purchase of equipment is a cash outflow for investing activities. 
B) Amortization expense is added to cash from financing activities. 
C) Cash received from accounts receivable is a cash inflow from financing. 
D) Purchase of treasury stock is a cash outflow for operating activities. 
A) Purchase of equipment is a cash outflow for investing activities. 
B) Amortization expense is added to cash from financing activities. 
C) Cash received from accounts receivable is a cash inflow from financing. 
D) Purchase of treasury stock is a cash outflow for operating activities.

Question 2

Which of the following supplementary disclosures are required by GAAP to be reported on the statement of cash flows or as a note to the financial statements?

Accepted Answer

A) interest and taxes paid 
B) free cash flow 
C) earnings per share 
D) operating activities plus dividends plus capital expenditures 
A) interest and taxes paid 
B) free cash flow 
C) earnings per share 
D) operating activities plus dividends plus capital expenditures

Question 3

College TV,Inc.had supplies of $20,000 on hand at December 31,2010 and $25,000 on hand at December 31,2011.Supplies used during 2011 were $50,000.No supplies were purchased on account.For each item,first select the column of the 2011 financial statement where the line item appears,and then fill in the correct amount:

Accepted Answer

The answer of College TV,Inc.had supplies of $20,000 on hand...

Question 4

The beginning balance in accounts payable was $4,365.The ending balance was $2,995.How is the accounting information for these items reported on the statement of cash flows using the indirect method?

Accepted Answer

The $1,370 net decrease will b

Question 5

Cash from financing activities includes ________.

Accepted Answer

A) all cash receipts and all cash disbursements for long-term business assets 
B) all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners 
C) all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business 
D) detailed estimates of the sources of cash and uses of cash 
A) all cash receipts and all cash disbursements for long-term business assets 
B) all cash receipts and all cash disbursements for loans,contributions from owners,and distributions to owners 
C) all cash receipts and cash disbursements for routine sales and purchases made in the course of doing business 
D) detailed estimates of the sources of cash and uses of cash

Question 6

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

Accepted Answer

A) $90,000 
B) $98,000 
C) $88,000 
D) $92,000 
A) $90,000 
B) $98,000 
C) $88,000 
D) $92,000

Question 7

Team Shirts, Inc. bought a screen-printing machine for $50,000, received $15,000 for the sale of its machine, and repaid a loan of $20,000. The amount of net cash from (or used for) INVESTING activities is ________.

Accepted Answer

A) $(35,000) 
B) $15,000 
C) $(5,000) 
D) $20,000 
A) $(35,000) 
B) $15,000 
C) $(5,000) 
D) $20,000

Question 8

A use of cash for operating activities is ________.

Accepted Answer

A) payment of an account payable 
B) payment of dividends 
C) cash used to buy equipment 
D) cash used to purchase treasury stock 
A) payment of an account payable 
B) payment of dividends 
C) cash used to buy equipment 
D) cash used to purchase treasury stock

Question 9

Cash collected from customers will be greater than the revenue for the same period if the accounts receivable balance increases.

Accepted Answer

A) True 
 B)False

Question 10

Team Shirts,Inc.bought a computer system for $100,000 and received $10,000 for the sale of its used computers.It also received $10,000 from the sale of its inventory.The amount of net cash from INVESTING activities is ________.

Accepted Answer

A) $(100,000) 
B) $(90,000) 
C) $(80,000) 
D) $80,000 
A) $(100,000) 
B) $(90,000) 
C) $(80,000) 
D) $80,000

Question 11

Team Shirts,Inc.recognized $4,690 of insurance expense for the year.At the beginning of the year,the balance in Prepaid insurance was $775.At the end of the year,the balance was $400.How is the accounting information for these items reported on the statement of cash flows using the INDIRECT method?

Accepted Answer

The net decrease in Prepaid insurance of

Question 12

Krupt, Inc., an international company, classified cash transferred to Krupt from its subsidiaries in foreign countries as cash collected from customers on its statement of cash flows.  The subsidiaries classified the same cash transferred to Krupt, Inc., the parent company, as payment of long-term debt on their statements of cash flows.  Which sections of the consolidated statement of cash flows (both the parent and its subsidiaries combined) will be affected and how? Does this classification of cash seem ethical?

Accepted Answer

The operating activities secti

Question 13

Which method of preparing the statement of cash flows would show increases in accounts receivable being subtracted from net income?

Accepted Answer

A) the direct method 
B) the indirect method 
C) accrual basis method 
D) No method shows increases in accounts receivable being subtracted from net income. 
A) the direct method 
B) the indirect method 
C) accrual basis method 
D) No method shows increases in accounts receivable being subtracted from net income.

Question 14

The statement of cash flows ________.

Accepted Answer

A) reports all of the cash a company has received and all of the cash a company has disbursed during an accounting period 
B) reports all of the income,expenses,and profit or losses a company has earned or incurred during an accounting period 
C) reports the amount of assets,liabilities,and shareholders' equity of a business 
D) reports all of the income,dividends,and retained earnings of a business 
A) reports all of the cash a company has received and all of the cash a company has disbursed during an accounting period 
B) reports all of the income,expenses,and profit or losses a company has earned or incurred during an accounting period 
C) reports the amount of assets,liabilities,and shareholders' equity of a business 
D) reports all of the income,dividends,and retained earnings of a business

Question 15

The preparation of cash budgets includes ________.

Accepted Answer

A) estimating in detail the amount and the timing of cash receipts and disbursements 
B) categorizing cash inflows and outflows by operating,financing,and investing activities 
C) securing a line of credit from a bank 
D) all of these 
A) estimating in detail the amount and the timing of cash receipts and disbursements 
B) categorizing cash inflows and outflows by operating,financing,and investing activities 
C) securing a line of credit from a bank 
D) all of these

Question 16

The statement of cash flows shows all of ________ the period.

Accepted Answer

A) the cash a company has collected and paid during 
B) the revenues earned and expenses incurred during 
C) assets,liabilities and shareholders' equity at the end of 
D) the changes in shareholders' equity during 
A) the cash a company has collected and paid during 
B) the revenues earned and expenses incurred during 
C) assets,liabilities and shareholders' equity at the end of 
D) the changes in shareholders' equity during

Question 17

How is the statement of cash flows prepared when using the direct method?

Accepted Answer

The direct method for the statement of c

Question 18

In applying the direct method,depreciation expense is ________.

Accepted Answer

A) added to net income because purchases of the depreciable long-term assets are investing activities 
B) subtracted from net income because it is a non-cash expense 
C) subtracted from cash from operating activities because it is a non-cash expense 
D) not shown on the statement of cash flows prepared using the direct method 
A) added to net income because purchases of the depreciable long-term assets are investing activities 
B) subtracted from net income because it is a non-cash expense 
C) subtracted from cash from operating activities because it is a non-cash expense 
D) not shown on the statement of cash flows prepared using the direct method

Question 19

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

Accepted Answer

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

Question 20

Team Shirts,Inc.issued $100,000 in common stock,borrowed $20,000,and paid $5,000 in dividends.The amount of net cash from (or used for)FINANCING activities is ________.

Accepted Answer

A) $80,000 
B) $75,000 
C) $115,000 
D) $(125,000) 
A) $80,000 
B) $75,000 
C) $115,000 
D) $(125,000)

Which of the following statements is true?

Which of the following supplementary disclosures are required by GAAP to be reported on the statement of cash flows or as a note to the financial statements?

The beginning balance in accounts payable was $4,365.The ending balance was $2,995.How is the accounting information for these items reported on the statement of cash flows using the indirect method?

Cash from financing activities includes ________.

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

Team Shirts, Inc. bought a screen-printing machine for $50,000, received $15,000 for the sale of its machine, and repaid a loan of $20,000. The amount of net cash from (or used for) INVESTING activities is ________.

A use of cash for operating activities is ________.

Cash collected from customers will be greater than the revenue for the same period if the accounts receivable balance increases.

Team Shirts,Inc.bought a computer system for $100,000 and received $10,000 for the sale of its used computers.It also received $10,000 from the sale of its inventory.The amount of net cash from INVESTING activities is ________.

Team Shirts,Inc.recognized $4,690 of insurance expense for the year.At the beginning of the year,the balance in Prepaid insurance was $775.At the end of the year,the balance was $400.How is the accounting information for these items reported on the statement of cash flows using the INDIRECT method?

Which method of preparing the statement of cash flows would show increases in accounts receivable being subtracted from net income?

The statement of cash flows ________.

The preparation of cash budgets includes ________.

The statement of cash flows shows all of ________ the period.

How is the statement of cash flows prepared when using the direct method?

In applying the direct method,depreciation expense is ________.

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

Team Shirts,Inc.issued $100,000 in common stock,borrowed $20,000,and paid $5,000 in dividends.The amount of net cash from (or used for)FINANCING activities is ________.

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

Which of the following statements is true?

Which of the following supplementary disclosures are required by GAAP to be reported on the statement of cash flows or as a note to the financial statements?

The beginning balance in accounts payable was $4,365.The ending balance was $2,995.How is the accounting information for these items reported on the statement of cash flows using the indirect method?

Cash from financing activities includes ________.

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

Team Shirts, Inc. bought a screen-printing machine for $50,000, received $15,000 for the sale of its machine, and repaid a loan of $20,000. The amount of net cash from (or used for) INVESTING activities is ________.

A use of cash for operating activities is ________.

Cash collected from customers will be greater than the revenue for the same period if the accounts receivable balance increases.

Team Shirts,Inc.bought a computer system for $100,000 and received $10,000 for the sale of its used computers.It also received $10,000 from the sale of its inventory.The amount of net cash from INVESTING activities is ________.

Team Shirts,Inc.recognized $4,690 of insurance expense for the year.At the beginning of the year,the balance in Prepaid insurance was $775.At the end of the year,the balance was $400.How is the accounting information for these items reported on the statement of cash flows using the INDIRECT method?

Which method of preparing the statement of cash flows would show increases in accounts receivable being subtracted from net income?

The statement of cash flows ________.

The preparation of cash budgets includes ________.

The statement of cash flows shows all of ________ the period.

How is the statement of cash flows prepared when using the direct method?

In applying the direct method,depreciation expense is ________.

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

Team Shirts,Inc.issued $100,000 in common stock,borrowed $20,000,and paid $5,000 in dividends.The amount of net cash from (or used for)FINANCING activities is ________.

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