Question 1

The statement of cash flows is:

Accepted Answer

A) The only financial statement that reports the cash balance of a company. 
B) A financial statement that presents information about changes in equity during a period. 
C) A financial statement that reports the cash inflows and outflows for an accounting period and that classifies those cash flows as operating activities,investing activities,or financing activities. 
D) A financial statement that lists the types and amounts of assets,liabilities,and equity of a business on a specific date. 
E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period. 
A) The only financial statement that reports the cash balance of a company. 
B) A financial statement that presents information about changes in equity during a period. 
C) A financial statement that reports the cash inflows and outflows for an accounting period and that classifies those cash flows as operating activities,investing activities,or financing activities. 
D) A financial statement that lists the types and amounts of assets,liabilities,and equity of a business on a specific date. 
E) A financial statement that lists the types and amounts of the revenues and expenses of a business for an accounting period.

Question 2

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

Accepted Answer

The spreadsheet provides an analytical f

Question 3

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow:
(a)
   (b)
   (c)

Accepted Answer

(a) @#IMG-DLM&_TB6947_00_TB6947_00_TB694

Question 4

The primary purpose of the statement of cash flows is to report all major cash receipts (inflows) and cash payments (outflows) during a period.

Accepted Answer

A) True 
 B)False

Question 5

Both cash dividends received and interest received are considered to be investing inflows.

Accepted Answer

A) True 
 B)False

Question 6

The accounting records of Miller Company provided the data below ($ in 000s).  
What is the net cash provided (used) by operating activities?

Accepted Answer

A) $20,600 
B) $27,600 
C) $3,800 
D) ($27,600) 
E) $41,800 
A) $20,600 
B) $27,600 
C) $3,800 
D) ($27,600) 
E) $41,800

Question 7

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

Accepted Answer

@#IMG-DLM&_TB6947_00

Question 8

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

Accepted Answer

A) Cash. 
B) Cash received from customers. 
C) Increase (decrease) in accounts receivable. 
D) Net income. 
E) Adjustments to net income. 
A) Cash. 
B) Cash received from customers. 
C) Increase (decrease) in accounts receivable. 
D) Net income. 
E) Adjustments to net income.

Question 9

The reporting of investing and financing activities is _________________ under the direct and indirect methods of preparing the statement of cash flows.

Accepted Answer

The answer of The reporting of investing and financing activities...

Question 10

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business,are classified as:

Accepted Answer

A) Financing activities 
B) Investing activities 
C) Operating activities 
D) Direct activities 
E) Indirect activities 
A) Financing activities 
B) Investing activities 
C) Operating activities 
D) Direct activities 
E) Indirect activities

Question 11

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash financing and investing activities. 
E) None of these as this is not reported on the statement of cash flows. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Schedule of noncash financing and investing activities. 
E) None of these as this is not reported on the statement of cash flows.

Question 12

Northwest Corporation's salaries expense was $18.0 million.What is the amount of cash that the company paid for salaries if the Salaries Payable account increased by $4.0 million?

Accepted Answer

The answer of Northwest Corporation's salaries expense was $18.0 million.What...

Question 13

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

Accepted Answer

Noncash investing and financing activiti

Question 14

The purchase of stock in another company is considered to be a financing activity.

Accepted Answer

A) True 
 B)False

Question 15

The cash flow on total assets ratio is defined as average total assets divided by operating income.

Accepted Answer

A) True 
 B)False

Question 16

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from operating activities generally affect:

Accepted Answer

A) Net income,current assets,and current liabilities. 
B) Noncurrent assets. 
C) Noncurrent liability and the equity accounts. 
D) Both noncurrent assets and noncurrent liabilities. 
E) Equity accounts only. 
A) Net income,current assets,and current liabilities. 
B) Noncurrent assets. 
C) Noncurrent liability and the equity accounts. 
D) Both noncurrent assets and noncurrent liabilities. 
E) Equity accounts only.

Question 17

For each of the following independent cases,use the information provided to calculate the missing cash inflow or cash outflow:
(a.)
   (b.)
   (c.)
   (d.)

Accepted Answer

(a.) @#IMG-DLM&_TB6947_00_TB6947_00_TB69

Question 18

Financing activities include the purchase and sale of long-term assets.

Accepted Answer

A) True 
 B)False

Question 19

A company's income statement showed the following: net income,$124,000; depreciation expense,$30,000,and gain on sale of plant assets,$14,000.An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400.Calculate the net cash provided or used by operating activities.

Accepted Answer

A) $139,000 
B) $141,000 
C) $145,800 
D) $155,000 
E) $167,000 
A) $139,000 
B) $141,000 
C) $145,800 
D) $155,000 
E) $167,000

Question 20

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts,such as receipts from customers,and subtracts the major items of operating cash disbursements,such as cash paid for merchandise,is referred to as the:

Accepted Answer

A) Direct method of reporting net cash provided or used by operating activities. 
B) Cash basis of accounting. 
C) Classified statement of cash flows. 
D) Indirect method of reporting net cash provided or used by operating activities. 
E) Net method of reporting cash flows from operating activities. 
A) Direct method of reporting net cash provided or used by operating activities. 
B) Cash basis of accounting. 
C) Classified statement of cash flows. 
D) Indirect method of reporting net cash provided or used by operating activities. 
E) Net method of reporting cash flows from operating activities.

The statement of cash flows is:

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow: (a) (b) (c)

The primary purpose of the statement of cash flows is to report all major cash receipts (inflows) and cash payments (outflows) during a period.

Both cash dividends received and interest received are considered to be investing inflows.

The accounting records of Miller Company provided the data below ($ in 000s). What is the net cash provided (used) by operating activities?

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

The reporting of investing and financing activities is _________________ under the direct and indirect methods of preparing the statement of cash flows.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business,are classified as:

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Northwest Corporation's salaries expense was $18.0 million.What is the amount of cash that the company paid for salaries if the Salaries Payable account increased by $4.0 million?

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

The purchase of stock in another company is considered to be a financing activity.

The cash flow on total assets ratio is defined as average total assets divided by operating income.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from operating activities generally affect:

For each of the following independent cases,use the information provided to calculate the missing cash inflow or cash outflow: (a.) (b.) (c.) (d.)

Financing activities include the purchase and sale of long-term assets.

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts,such as receipts from customers,and subtracts the major items of operating cash disbursements,such as cash paid for merchandise,is referred to as the:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters

Exam 12: Reporting and Analyzing Cash Flows

The statement of cash flows is:

Explain the use of a spreadsheet in the preparation of the statement of cash flows.

For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow: (a) (b) (c)

The primary purpose of the statement of cash flows is to report all major cash receipts (inflows) and cash payments (outflows) during a period.

Both cash dividends received and interest received are considered to be investing inflows.

The accounting records of Miller Company provided the data below ($ in 000s). What is the net cash provided (used) by operating activities?

A corporation reported average total assets of $397,350 in 2012 and $440,800 in 2013.Its net operating cash flow was $35,667 for 2012 and $35,790 for 2013.Calculate the cash flow on total assets ratio for both years.Comment on the results.

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

The reporting of investing and financing activities is _________________ under the direct and indirect methods of preparing the statement of cash flows.

Activities that involve the production or purchase of merchandise and the sale of goods and services to customers,including expenditures related to administering the business,are classified as:

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Northwest Corporation's salaries expense was $18.0 million.What is the amount of cash that the company paid for salaries if the Salaries Payable account increased by $4.0 million?

Define and explain significant noncash investing and financing activities and the method of reporting them on the statement of cash flows.

The purchase of stock in another company is considered to be a financing activity.

The cash flow on total assets ratio is defined as average total assets divided by operating income.

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from operating activities generally affect:

For each of the following independent cases,use the information provided to calculate the missing cash inflow or cash outflow: (a.) (b.) (c.) (d.)

Financing activities include the purchase and sale of long-term assets.

The reporting of net cash provided or used by operating activities that lists the major items of operating cash receipts,such as receipts from customers,and subtracts the major items of operating cash disbursements,such as cash paid for merchandise,is referred to as the:

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Accounting for Partnerships

Accounting With Special Journals

Filters