Question 1

Companies may report interest received and dividends received as investing activities using:

Accepted Answer

A) U.S.GAAP. 
B) IFRS. 
C) Both U.S.GAAP and IFRS. 
D) Neither U.S.GAAP nor IFRS. 
A) U.S.GAAP. 
B) IFRS. 
C) Both U.S.GAAP and IFRS. 
D) Neither U.S.GAAP nor IFRS. B

Question 2

When treasury stock is sold at an amount less than its cost, the sale is classified as:

Accepted Answer

A) A financing activity. 
B) An operating activity. 
C) A financing activity and an operating activity. 
D) An investing activity. 
A) A financing activity. 
B) An operating activity. 
C) A financing activity and an operating activity. 
D) An investing activity. A

Question 3

What was most responsible for the negative cash flow from financing activities during 2011? What amount was paid?

Accepted Answer

Principal payments on long-term debt and lease agreements were $485 million.

Question 4

Which of the following would be added to net income when determining cash flows from operating activities under the indirect method?

Accepted Answer

A) A gain on the sale of land. 
B) An increase in prepaid expenses. 
C) A decrease in accounts payable. 
D) A decrease in accounts receivable. 
A) A gain on the sale of land. 
B) An increase in prepaid expenses. 
C) A decrease in accounts payable. 
D) A decrease in accounts receivable.

Question 5

Hogan Company had the following account balances for 2013:   Hogan reported net income of $300,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?

Accepted Answer

A) $291,000. 
B) $290,000. 
C) $281,000. 
D) $301,000. 
A) $291,000. 
B) $290,000. 
C) $281,000. 
D) $301,000.

Question 6

S Company reported net income for 2013 in the amount of $400,000. The company's financial statements also included the following:   What is net cash provided by operating activities under the indirect method?

Accepted Answer

A) $432,000. 
B) $536,000. 
C) $580,000. 
D) $832,000. 
A) $432,000. 
B) $536,000. 
C) $580,000. 
D) $832,000.

Question 7

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Accepted Answer

Cash flows from financing acti

Question 8

Interest payments to creditors are reported in a statement of cash flows as:

Accepted Answer

A) An investing activity. 
B) A borrowing activity. 
C) A financing activity. 
D) An operating activity. 
A) An investing activity. 
B) A borrowing activity. 
C) A financing activity. 
D) An operating activity.

Question 9

Which of the following is reported as an investing activity in the statement of cash flows?

Accepted Answer

A) Sale of a subsidiary. 
B) Issuance of a long-term promissory note. 
C) Sale of treasury stock. 
D) Purchase of highly liquid, short-term investments with excess cash. 
A) Sale of a subsidiary. 
B) Issuance of a long-term promissory note. 
C) Sale of treasury stock. 
D) Purchase of highly liquid, short-term investments with excess cash.

Question 10

Which of the following is reported as a financing activity in the statement of cash flows?

Accepted Answer

A) The sale of securities classified as available for sale. 
B) The acquisition of stock for the purpose of retiring it. 
C) The payment of interest on bonds payable. 
D) The receipt of dividend revenue. 
A) The sale of securities classified as available for sale. 
B) The acquisition of stock for the purpose of retiring it. 
C) The payment of interest on bonds payable. 
D) The receipt of dividend revenue.

Question 11

Property dividends distributed are reported in connection with a statement of cash flows as:

Accepted Answer

A) A financing activity. 
B) An investing activity. 
C) A noncash activity. 
D) Not reported in the statement of cash flows. 
A) A financing activity. 
B) An investing activity. 
C) A noncash activity. 
D) Not reported in the statement of cash flows.

Question 12

In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their fair value should be reported as:

Accepted Answer

A) A deduction from net income in determining cash flows from operating activities. 
B) An addition to net income in determining cash flows from operating activities. 
C) An investing activity. 
D) Not reporteD.The unrealized gain increased other comprehensive income, not net income, and is not a cash flow. 
A) A deduction from net income in determining cash flows from operating activities. 
B) An addition to net income in determining cash flows from operating activities. 
C) An investing activity. 
D) Not reporteD.The unrealized gain increased other comprehensive income, not net income, and is not a cash flow.

Question 13

Selected information from Peridot Corporation's accounting records and financial statements for 2013 is as follows ($ in millions):   In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

Accepted Answer

A) $26 million. 
B) $46 million. 
C) $72 million. 
D) $78 million. 
A) $26 million. 
B) $46 million. 
C) $72 million. 
D) $78 million.

Question 14

When one enters a $50,000 credit entry to the Land account in a spreadsheet for the statement of cash flows, it represents a negative change in that account and probably is due to selling such assets.

Accepted Answer

A) True 
 B)False

Question 15

What are the general guidelines for an investment to be considered a cash equivalent?

Accepted Answer

To be classified as a cash equivalent, a

Question 16

Partial balance sheets and additional information are listed below for Monaco Company.   Additional information for 2013:
Net income was $270,000.
Depreciation expense was $30,000.
Sales totaled $800,000.
Cost of goods sold totaled $305,000.
Required:
Calculate the amount of cash paid to merchandise suppliers during 2013.

Accepted Answer

The answer of Partial balance sheets and additional information are...

Question 17

Alpha Company had the following account balances for 2013:   Alpha reported net income of $210,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?

Accepted Answer

A) $224,000. 
B) $206,000. 
C) $214,000. 
D) $196,000. 
A) $224,000. 
B) $206,000. 
C) $214,000. 
D) $196,000.

Question 18

A company reported interest expense of $540,000 for the year. Interest payable was $35,000 and $75,000 at the beginning and the end of the year, respectively. What was the amount of interest paid?

Accepted Answer

A) $580,000. 
B) $615,000. 
C) $500,000. 
D) $575,000. 
A) $580,000. 
B) $615,000. 
C) $500,000. 
D) $575,000.

Question 19

A firm reported salary expense of $239,000 for the current year. The beginning and ending balances in salaries payable were $40,000 and $15,000, respectively. What was the amount of cash paid for salaries?

Accepted Answer

A) $214,000. 
B) $289,000. 
C) $264,000. 
D) $239,000. 
A) $214,000. 
B) $289,000. 
C) $264,000. 
D) $239,000.

Question 20

When preparing a statement of cash flows using the direct method, accrual of payroll expense is:

Accepted Answer

A) Reported as an operating activity. 
B) Reported as an investing activity. 
C) Reported as a financing activity. 
D) None of the above is correct. 
A) Reported as an operating activity. 
B) Reported as an investing activity. 
C) Reported as a financing activity. 
D) None of the above is correct.

Companies may report interest received and dividends received as investing activities using:

When treasury stock is sold at an amount less than its cost, the sale is classified as:

What was most responsible for the negative cash flow from financing activities during 2011? What amount was paid?

Which of the following would be added to net income when determining cash flows from operating activities under the indirect method?

Hogan Company had the following account balances for 2013: Hogan reported net income of $300,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?

S Company reported net income for 2013 in the amount of $400,000. The company's financial statements also included the following: What is net cash provided by operating activities under the indirect method?

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Interest payments to creditors are reported in a statement of cash flows as:

Which of the following is reported as an investing activity in the statement of cash flows?

Which of the following is reported as a financing activity in the statement of cash flows?

Property dividends distributed are reported in connection with a statement of cash flows as:

In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their fair value should be reported as:

Selected information from Peridot Corporation's accounting records and financial statements for 2013 is as follows ($ in millions): In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

When one enters a $50,000 credit entry to the Land account in a spreadsheet for the statement of cash flows, it represents a negative change in that account and probably is due to selling such assets.

What are the general guidelines for an investment to be considered a cash equivalent?

Alpha Company had the following account balances for 2013: Alpha reported net income of $210,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?

A company reported interest expense of $540,000 for the year. Interest payable was $35,000 and $75,000 at the beginning and the end of the year, respectively. What was the amount of interest paid?

A firm reported salary expense of $239,000 for the current year. The beginning and ending balances in salaries payable were $40,000 and $15,000, respectively. What was the amount of cash paid for salaries?

When preparing a statement of cash flows using the direct method, accrual of payroll expense is:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Income Measurement and Profitability Analysis

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Property, Plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, Plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, Plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity Key

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

Filters

Exam 21: The Statement of Cash Flows Revisited

Companies may report interest received and dividends received as investing activities using:

When treasury stock is sold at an amount less than its cost, the sale is classified as:

What was most responsible for the negative cash flow from financing activities during 2011? What amount was paid?

Which of the following would be added to net income when determining cash flows from operating activities under the indirect method?

Hogan Company had the following account balances for 2013: Hogan reported net income of $300,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?

S Company reported net income for 2013 in the amount of $400,000. The company's financial statements also included the following: What is net cash provided by operating activities under the indirect method?

What activities are included in the statement of cash flows under the section titled "Cash flows from financing activities"?

Interest payments to creditors are reported in a statement of cash flows as:

Which of the following is reported as an investing activity in the statement of cash flows?

Which of the following is reported as a financing activity in the statement of cash flows?

Property dividends distributed are reported in connection with a statement of cash flows as:

In a statement of cash flows using the indirect method, an increase in available-for-sale securities due to an increase in their fair value should be reported as:

Selected information from Peridot Corporation's accounting records and financial statements for 2013 is as follows ($ in millions): In its statement of cash flows, Peridot should report net cash outflows from investing activities of:

When one enters a $50,000 credit entry to the Land account in a spreadsheet for the statement of cash flows, it represents a negative change in that account and probably is due to selling such assets.

What are the general guidelines for an investment to be considered a cash equivalent?

Alpha Company had the following account balances for 2013: Alpha reported net income of $210,000 for 2013. Assuming no other changes in current account balances, what is the amount of net cash provided by operating activities for 2013 reported in the statement of cash flows?

A company reported interest expense of $540,000 for the year. Interest payable was $35,000 and $75,000 at the beginning and the end of the year, respectively. What was the amount of interest paid?

A firm reported salary expense of $239,000 for the current year. The beginning and ending balances in salaries payable were $40,000 and $15,000, respectively. What was the amount of cash paid for salaries?

When preparing a statement of cash flows using the direct method, accrual of payroll expense is:

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, Comprehensive Income, and the Statement of Cash Flows

Income Measurement and Profitability Analysis

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Property, Plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, Plant, and Equipment and Intangible Assets: Acquisition and Disposition

Property, Plant, and Equipment and Intangible Assets: Utilization and Impairment

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity Key

Share-Based Compensation and Earnings Per Share

Accounting Changes and Error Corrections

Filters