Question 1

Which of the following is not classified as an operating activity?

Accepted Answer

A) Interest paid on long-term debt. 
B) Dividends received on common stock. 
C) Dividends paid on common stock. 
D) Payments on accounts payable. 
A) Interest paid on long-term debt. 
B) Dividends received on common stock. 
C) Dividends paid on common stock. 
D) Payments on accounts payable.

Question 2

Melanie Corporation declared cash dividends of $13,500 during the current year. The beginning and ending balances in dividends payable were $450 and $750, respectively. What was the amount of cash paid for dividends?

Accepted Answer

A) $12,750. 
B) $13,800. 
C) $12,900. 
D) $13,200. 
A) $12,750. 
B) $13,800. 
C) $12,900. 
D) $13,200.

Question 3

Which of the following is always reported as an outflow of cash?

Accepted Answer

A) The accrual of warranty expense. 
B) The declaration of a cash dividend. 
C) The purchase of equipment for cash. 
D) Amortization expense. 
A) The accrual of warranty expense. 
B) The declaration of a cash dividend. 
C) The purchase of equipment for cash. 
D) Amortization expense.

Question 4

If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, cash paid for bond interest is:

Accepted Answer

A) $790,000. 
B) $784,000. 
C) $806,000. 
D) $910,000. 
A) $790,000. 
B) $784,000. 
C) $806,000. 
D) $910,000.

Question 5

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity.
Transactions

Accepted Answer

The answer of Listed below are several transactions that typically...

Question 6

In preparation for developing its statement of cash flows for the year just ended, D-Rose Distributors collected the following information:   Required:
1. In D-Rose's statement of cash flows, what were net cash inflows (or outflows) from investing activities?
2. In D-Rose's statement of cash flows, what were net cash inflows (or outflows) from financing activities?

Accepted Answer

The answer of In preparation for developing its statement of...

Question 7

Why are "cash equivalents" included as part of cash in the statement of cash flows?

Accepted Answer

Skilled managers will invest temporarily

Question 8

A statement of cash flows and its related disclosure note typically do not report:

Accepted Answer

A) An acquisition of the use of a building with a lease agreement. 
B) The purchase of treasury stock. 
C) Stock dividends. 
D) Notes payable issued for a tract of lanD.Stock dividends don't change assets, liabilities, or shareholders' equity. 
A) An acquisition of the use of a building with a lease agreement. 
B) The purchase of treasury stock. 
C) Stock dividends. 
D) Notes payable issued for a tract of lanD.Stock dividends don't change assets, liabilities, or shareholders' equity.

Question 9

Charlene Company sold a printer with a cost of $68,000 and accumulated depreciation of $23,000 for $20,000 cash. This transaction would be reported as:

Accepted Answer

A) An operating activity. 
B) An investing activity. 
C) A financing activity. 
D) None of the above is correct. 
A) An operating activity. 
B) An investing activity. 
C) A financing activity. 
D) None of the above is correct.

Question 10

The following are comparative balance sheets and an income statement for Wentworth Company.     Cash dividends of $45,000 were paid in 2013.
Required:
Prepare a statement of cash flows for 2013 using the direct method.

Accepted Answer

Note: This can be so

Question 11

Partial balance sheets and additional information are listed below for Sowell Company.   Additional information for 2013:
Net income was $88,000.
Depreciation expense was $19,000.
Required:
Prepare the operating activities section of the statement of cash flows for 2013 using the indirect method.

Accepted Answer

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

Question 12

How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method?

Accepted Answer

A) Not reported. 
B) An increase in cash flows from operating activities. 
C) A decrease in cash flows from operating activities. 
D) A decrease in cash flows from investing activities. 
A) Not reported. 
B) An increase in cash flows from operating activities. 
C) A decrease in cash flows from operating activities. 
D) A decrease in cash flows from investing activities.

Question 13

In preparation for developing its statement of cash flows for the year ended December 31, 2013, Millennium Solutions, Inc., collected the following information:   Required:
1. In Millennium's statement of cash flows, what were net cash inflows (or outflows) from investing activities for 2013?
2. In Millennium's statement of cash flows, what were net cash inflows (or outflows) from financing activities for 2013?

Accepted Answer

The answer of In preparation for developing its statement of...

Question 14

Lite Travel Company's accounting records include the following information:   What is the amount of net cash provided by operating activities indicated by the amounts provided?

Accepted Answer

A) $50,000. 
B) $73,000. 
C) $94,000. 
D) $129,000. 
A) $50,000. 
B) $73,000. 
C) $94,000. 
D) $129,000.

Question 15

Did accounts receivable increase or decrease during 2013?

Accepted Answer

The accounts receivable balance decrease

Question 16

Partial balance sheets for ABC Company and additional information are provided below.   Additional information for 2013:   Required:
Prepare the financing activities section of the statement of cash flows for 2013.

Accepted Answer

The answer of Partial balance sheets for ABC Company and...

Question 17

In determining cash flows from operating activities (indirect method), adjustments to net income should not include:

Accepted Answer

A) An addition for depreciation expense. 
B) An addition for bond discount amortization. 
C) An addition for a gain on sale of equipment. 
D) An addition for patent amortization. 
A) An addition for depreciation expense. 
B) An addition for bond discount amortization. 
C) An addition for a gain on sale of equipment. 
D) An addition for patent amortization.

Question 18

Sneed Corporation reported balances in the following accounts for the current year:   Income tax expense was $230 for the year. What was the amount paid for taxes?

Accepted Answer

A) $280. 
B) $220. 
C) $210. 
D) $190. 
A) $280. 
B) $220. 
C) $210. 
D) $190.

Question 19

Partial balance sheets for Yarborough Company and additional information are found below.   Additional information for 2013:   Required:
Prepare the investing activities section of the statement of cash flows for 2013.

Accepted Answer

The answer of Partial balance sheets for Yarborough Company and...

Question 20

Transactions that involve merely purchases or sales of cash equivalents generally are not reported on a statement of cash flows. Describe an exception to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

Accepted Answer

Transactions that involve merely transfe

Which of the following is not classified as an operating activity?

Melanie Corporation declared cash dividends of $13,500 during the current year. The beginning and ending balances in dividends payable were $450 and $750, respectively. What was the amount of cash paid for dividends?

Which of the following is always reported as an outflow of cash?

If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, cash paid for bond interest is:

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity. Transactions

Why are "cash equivalents" included as part of cash in the statement of cash flows?

A statement of cash flows and its related disclosure note typically do not report:

Charlene Company sold a printer with a cost of $68,000 and accumulated depreciation of $23,000 for $20,000 cash. This transaction would be reported as:

The following are comparative balance sheets and an income statement for Wentworth Company. Cash dividends of $45,000 were paid in 2013. Required: Prepare a statement of cash flows for 2013 using the direct method.

Partial balance sheets and additional information are listed below for Sowell Company. Additional information for 2013: Net income was $88,000. Depreciation expense was $19,000. Required: Prepare the operating activities section of the statement of cash flows for 2013 using the indirect method.

How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method?

Lite Travel Company's accounting records include the following information: What is the amount of net cash provided by operating activities indicated by the amounts provided?

Did accounts receivable increase or decrease during 2013?

Partial balance sheets for ABC Company and additional information are provided below. Additional information for 2013: Required: Prepare the financing activities section of the statement of cash flows for 2013.

In determining cash flows from operating activities (indirect method), adjustments to net income should not include:

Sneed Corporation reported balances in the following accounts for the current year: Income tax expense was $230 for the year. What was the amount paid for taxes?

Partial balance sheets for Yarborough Company and additional information are found below. Additional information for 2013: Required: Prepare the investing activities section of the statement of cash flows for 2013.

Transactions that involve merely purchases or sales of cash equivalents generally are not reported on a statement of cash flows. Describe an exception to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

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

Which of the following is not classified as an operating activity?

Melanie Corporation declared cash dividends of $13,500 during the current year. The beginning and ending balances in dividends payable were $450 and $750, respectively. What was the amount of cash paid for dividends?

Which of the following is always reported as an outflow of cash?

If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount decreased by $2,000, cash paid for bond interest is:

Listed below are several transactions that typically produce either an increase or a decrease in cash. Indicate by letter whether the cash effect of each transaction is reported on a statement of cash flows as an operating (O), investing (I), or financing (F) activity. Transactions

Why are "cash equivalents" included as part of cash in the statement of cash flows?

A statement of cash flows and its related disclosure note typically do not report:

Charlene Company sold a printer with a cost of $68,000 and accumulated depreciation of $23,000 for $20,000 cash. This transaction would be reported as:

The following are comparative balance sheets and an income statement for Wentworth Company. Cash dividends of $45,000 were paid in 2013. Required: Prepare a statement of cash flows for 2013 using the direct method.

Partial balance sheets and additional information are listed below for Sowell Company. Additional information for 2013: Net income was $88,000. Depreciation expense was $19,000. Required: Prepare the operating activities section of the statement of cash flows for 2013 using the indirect method.

How is the amortization of patents reported in a statement of cash flows that is prepared using the direct method?

Lite Travel Company's accounting records include the following information: What is the amount of net cash provided by operating activities indicated by the amounts provided?

Did accounts receivable increase or decrease during 2013?

Partial balance sheets for ABC Company and additional information are provided below. Additional information for 2013: Required: Prepare the financing activities section of the statement of cash flows for 2013.

In determining cash flows from operating activities (indirect method), adjustments to net income should not include:

Sneed Corporation reported balances in the following accounts for the current year: Income tax expense was $230 for the year. What was the amount paid for taxes?

Partial balance sheets for Yarborough Company and additional information are found below. Additional information for 2013: Required: Prepare the investing activities section of the statement of cash flows for 2013.

Transactions that involve merely purchases or sales of cash equivalents generally are not reported on a statement of cash flows. Describe an exception to this generalization. What is the essential characteristic of the transaction that qualifies as an exception?

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