Exam 16: Statement of Cash Flows: Another Look

The effect of patent amortization on cash flow is conceptually identical to that of

In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve ____ debit changes in operating working capital accounts.

In determining cash flows from operations, which method starts with net income, then add noncash expenses and subtracts noncash revenues?

The product life-cycle concept from microeconomics and marketing provides useful insights into the relations between cash flows from operating, investing, and financing activities.When a product matures,

In preparing a T-account work sheet, a master T-account for cash appears at the top of the work sheet.This master T-account has three sections, labeled

In theprocedure for preparing the statement of cash flows using a T-account work sheet, a master T-account for _____ appears at the top of the work sheet.

Zanies Corporation reports its income from investments under the equity method and recognized income of $15,000 from its investment in Travis Company during the current year.Travis declared no dividends during the current year.On Daniels' statement of cash flows the $15,000 would

Which method of preparing the statement of cash flows starts with the total for net income and removes the effects of gains and losses from nonoperating transactions, and then adds or subtracts balance sheet changes involving operating accounts?

In determining cash flows from operations under the indirect method, the adjustments to convert net income to cash flow from operations generally involve ____ credit changes in operating working capital accounts, such as accounts receivable, inventories, or accounts payable.

What method starts with the components of income, the individual revenues and expenses, but not gains and losses, then adds or subtracts the same balance sheet changes involving the same operating accounts? Take an income statement line, then list next to it, horizontally, additions and subtractions.

The cash flow from operations section shows an addition for the increase in the current asset accounts in an amount equal to the firm's expenditure to acquire a derivative.

Net income for a particular period will likely differ from cash flow from operations for the same period.

Firms engage in transactions involving derivatives.For the most part, the complex parts of these transactions occur _____, but those transactions do _____ until, possibly, their settlement.

The balance sheet portrays the effects of a firm's investing and financing decisions.In analyzing these decisions, what two principles guide financing decisions?

The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations Firms that grow or diversify by acquiring minority ownership positions in other businesses will often show

In U.S.GAAP, which of the following accurately describes the effects of transactions involving investments on the statement of cash flows using the fair value method for securities available for sale and cash flow hedges?

During Year 3, investors in bonds of Kline Corporation exercised their option to convert their debt securities into shares of common stock.The entry made in the accounting records to record the conversion is as follows: Bonds Payable ...................................3,000 Common Stock ....................................1,000 Additional Paid-in Capital ............................2,000 The transaction requires

The product life-cycle concept from microeconomics and marketing provides useful insights into the relations among cash flows from operating, investing, and financing activities.

The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations depends on the nature of its operations. Firms that grow or diversify by acquiring minority ownership positions in other businesses will often show a

The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations under the indirect method depends on the nature of its operations.Service firms will likely show a small amount of