Question 1

A company had wage expense of $750,000 during a given period.Compute cash paid for wages during this period given the following data:

Accepted Answer

A) $750,000 
B) $675,500 
C) $824,500 
D) $74,500 
E) $125,500 
A) $750,000 
B) $675,500 
C) $824,500 
D) $74,500 
E) $125,500

Question 2

___________________ activities generally include those transactions and events that affect long-term assets.

Accepted Answer

The answer of ___________________ activities generally include those transactions and...

Question 3

The following selected account balances are taken from a merchandising company's records:
   (a) Calculate the cash payments made during 2013 for merchandise.Assume all of the company's accounts payable balances are a result from merchandise purchases.
(b) Calculate the cash receipts from customer sales during 2013.
(c) Calculate the cash payments for salaries during 2013.

Accepted Answer

(a) @#IMG-DLM&_TB6947_00_TB6947_00_TB694

Question 4

Martin,Inc.'s,income statement is shown below.Based on this income statement and the other information provided,calculate the net cash provided by operations using the indirect method.
   Additional information:

Accepted Answer

The answer of Martin,Inc.'s,income statement is shown below.Based on this...

Question 5

Use the following information to calculate cash paid for salaries:

Accepted Answer

A) $75,680 
B) $82,080 
C) $79,000 
D) $85,400 
E) $82,320 
A) $75,680 
B) $82,080 
C) $79,000 
D) $85,400 
E) $82,320

Question 6

The direct method of preparing the statement of cash flows is usually viewed as user friendly since it requires less accounting knowledge to understand it.

Accepted Answer

A) True 
 B)False

Question 7

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes is a(n):

Accepted Answer

A) Short-term marketable equity security. 
B) Operating activity. 
C) Common stock. 
D) Cash equivalent. 
E) Financing activity. 
A) Short-term marketable equity security. 
B) Operating activity. 
C) Common stock. 
D) Cash equivalent. 
E) Financing activity.

Question 8

Selected information from Jet Company's 2013 financial statements is shown below (in millions):
 
-What is the amount of cash paid for purchases by Jet during 2013?

Accepted Answer

A) $36.5 
B) $47.5 
C) $37.5 
D) $35.5 
E) $23.5 
A) $36.5 
B) $47.5 
C) $37.5 
D) $35.5 
E) $23.5

Question 9

The direct method for the preparation of the operating activities section of the statement of cash flows:

Accepted Answer

A) Separately lists each major item of operating cash receipts and cash payments. 
B) Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement. 
C) Reports an amount of cash flows from operations different from the amount determined using the indirect method. 
D) Is required if the company is a merchandiser. 
E) Is required by the FASB. 
A) Separately lists each major item of operating cash receipts and cash payments. 
B) Reports adjustments to reconcile net income to net cash provided or used by operating activities in the statement. 
C) Reports an amount of cash flows from operations different from the amount determined using the indirect method. 
D) Is required if the company is a merchandiser. 
E) Is required by the FASB.

Question 10

Information to prepare the statement of cash flows usually comes from three sources: (1) __________________________, (2) _______________________ and (3) ____________________.

Accepted Answer

comparative balance

Question 11

Use the following company information to prepare a schedule of significant noncash investing and financing activities:
(a) Sold a building with a book value of $125,000 for $195,000 cash and land with a book value of $32,000 for $65,000 cash.
(b) Issued 10,000 shares of $10 par value common stock in exchange for equipment with a market value of $135,000.
(c) Retired a $100,000,10% bond by issuing another $100,000,12% bond issue.
(d) Acquired land by issuing a 10-year,9%,$44,000 note payable.

Accepted Answer

Schedule of noncash

Question 12

A company had total assets of $1,760,000,total cash flows of $1,320,000,and cash flows from operations of $205,000.The cash flow on total assets ratio is equal to:

Accepted Answer

A) 1.33% 
B) 8.58% 
C) 11.65% 
D) 15.5% 
E) 75% 
A) 1.33% 
B) 8.58% 
C) 11.65% 
D) 15.5% 
E) 75%

Question 13

A cash-based measure that is used to help business decision makers estimate the amount and timing of cash flows is the cash flow on total assets ratio.

Accepted Answer

A) True 
 B)False

Question 14

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Accepted Answer

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

Question 15

Explain the purpose and format of the statement of cash flows.Also,describe its use to decision makers.

Accepted Answer

The purpose of the statement of cash flo

Question 16

Which of the following items is reported on the statement of cash flows under financing activities?

Accepted Answer

A) Declaration of a cash dividend. 
B) Payment of a cash dividend. 
C) Declaration of a stock dividend. 
D) Payment of a stock dividend. 
E) Stock split. 
A) Declaration of a cash dividend. 
B) Payment of a cash dividend. 
C) Declaration of a stock dividend. 
D) Payment of a stock dividend. 
E) Stock split.

Question 17

The statement of cash flows reports:

Accepted Answer

A) Assets,liabilities,and equity. 
B) Revenues,gains,expenses,and losses. 
C) Cash inflows and outflows for an accounting period. 
D) Equity,net income,and dividends. 
E) Changes in equity. 
A) Assets,liabilities,and equity. 
B) Revenues,gains,expenses,and losses. 
C) Cash inflows and outflows for an accounting period. 
D) Equity,net income,and dividends. 
E) Changes in equity.

Question 18

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 19

A main purpose of the statement of cash flows is to report all the major cash ________ and cash _______________.

Accepted Answer

receipts (

Question 20

Accounting standards:

Accepted Answer

A) Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset. 
B) Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities. 
C) Require that companies include a statement of cash flows in a complete set of financial statements. 
D) Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets. 
E) Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities. 
A) Allow companies to omit the statement of cash flows from a complete set of financial statements if cash is an insignificant asset. 
B) Require that companies omit the statement of cash flows from a complete set of financial statements if the company has no investing activities. 
C) Require that companies include a statement of cash flows in a complete set of financial statements. 
D) Allow companies to include the statement of cash flows in a complete set of financial statements if the cash balance makes up more than 50% of the current assets. 
E) Allow companies to omit the statement of cash flows from a complete set of financial statements if the company has no financing activities.

A company had wage expense of $750,000 during a given period.Compute cash paid for wages during this period given the following data:

___________________ activities generally include those transactions and events that affect long-term assets.

Martin,Inc.'s,income statement is shown below.Based on this income statement and the other information provided,calculate the net cash provided by operations using the indirect method. Additional information:

Use the following information to calculate cash paid for salaries:

The direct method of preparing the statement of cash flows is usually viewed as user friendly since it requires less accounting knowledge to understand it.

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes is a(n):

Selected information from Jet Company's 2013 financial statements is shown below (in millions): -What is the amount of cash paid for purchases by Jet during 2013?

The direct method for the preparation of the operating activities section of the statement of cash flows:

Information to prepare the statement of cash flows usually comes from three sources: (1) ______________, (2) _ and (3) __________.

A company had total assets of $1,760,000,total cash flows of $1,320,000,and cash flows from operations of $205,000.The cash flow on total assets ratio is equal to:

A cash-based measure that is used to help business decision makers estimate the amount and timing of cash flows is the cash flow on total assets ratio.

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Explain the purpose and format of the statement of cash flows.Also,describe its use to decision makers.

Which of the following items is reported on the statement of cash flows under financing activities?

The statement of cash flows reports:

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

A main purpose of the statement of cash flows is to report all the major cash and cash _______.

Accounting standards:

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

A company had wage expense of $750,000 during a given period.Compute cash paid for wages during this period given the following data:

___________________ activities generally include those transactions and events that affect long-term assets.

Martin,Inc.'s,income statement is shown below.Based on this income statement and the other information provided,calculate the net cash provided by operations using the indirect method. Additional information:

Use the following information to calculate cash paid for salaries:

The direct method of preparing the statement of cash flows is usually viewed as user friendly since it requires less accounting knowledge to understand it.

An investment that is readily convertible to a known amount of cash and that is sufficiently close to its maturity date so that its market value is relatively insensitive to interest rate changes is a(n):

Selected information from Jet Company's 2013 financial statements is shown below (in millions): -What is the amount of cash paid for purchases by Jet during 2013?

The direct method for the preparation of the operating activities section of the statement of cash flows:

Information to prepare the statement of cash flows usually comes from three sources: (1) __________________________, (2) _______________________ and (3) ____________________.

A company had total assets of $1,760,000,total cash flows of $1,320,000,and cash flows from operations of $205,000.The cash flow on total assets ratio is equal to:

A cash-based measure that is used to help business decision makers estimate the amount and timing of cash flows is the cash flow on total assets ratio.

The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is:

Explain the purpose and format of the statement of cash flows.Also,describe its use to decision makers.

Which of the following items is reported on the statement of cash flows under financing activities?

The statement of cash flows reports:

A spreadsheet can help organize the information needed to prepare a statement of cash flows.

A main purpose of the statement of cash flows is to report all the major cash ________ and cash _______________.

Accounting standards:

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

Information to prepare the statement of cash flows usually comes from three sources: (1) ______________, (2) _ and (3) __________.

A main purpose of the statement of cash flows is to report all the major cash and cash _______.