Exam 17: Reporting and Analyzing 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:

(Multiple Choice)

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Question 41

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

(True/False)

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Question 42

Financing activities include (a)the purchase and sale of long-term assets,(b)the purchase and sale of trading investments,and (c)lending and collecting on loans.

(True/False)

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Question 43

The accounting principle which requires that noncash financing and investing activities are reported on the statement of cash flows is the principle of:

(Multiple Choice)

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Question 44

While analyzing Tektron's statement of cash flows,you note that there was a net cash outflow from investing activities of $87,000,while cash provided by operations was $95,000.This means that:

(Multiple Choice)

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Question 45

Dispositions of long-term assets:

(Multiple Choice)

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Question 46

Examples of transactions that must be disclosed as noncash investing and financing activities include:

(Multiple Choice)

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Question 47

Under the indirect method,a decrease in accounts payable will be added to net income.

(True/False)

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Question 48

The sale of equipment increases investing cash flows.

(True/False)

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Question 49

Many business decisions are based on cash flow evaluations.

(True/False)

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Question 50

Reporting of financing activities is the same under both the direct and the indirect methods.

(True/False)

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Question 51

Investing activities include: (a)the purchase and sale of long-term assets,(b)lending and collecting on notes receivable,(c)the purchase and sale of investments other than cash equivalents.

(True/False)

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Question 52

Financing activities include receiving dividends from investments in other companies.

(True/False)

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Question 53

A noncash purchase of land is reported in the investing section of the statement of cash flows as a separate line item.

(True/False)

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Question 54

The statement of cash flows helps analysts evaluate whether a company has enough cash to:

(Multiple Choice)

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Question 55

In each of the following cases,use the information provided about the current year operations of Lora Company to calculate the indicated cash flow item.

(Multiple Choice)

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Question 56

The proceeds from the disposal of property,plant and equipment are reported on the statement of cash flows as cash used by investing activities.

(True/False)

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Question 57

Which of the following is included in cash flows from financing activities?

(Multiple Choice)

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Question 58

Managers use cash flow predictions to:

(Multiple Choice)

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Question 59

A change in retained earnings can be due to payment of cash dividends

(True/False)

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Question 60

Showing 41 - 60 of 138

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:

Accounting standards require companies to include a statement of cash flows in a complete set of financial statements.

Financing activities include (a)the purchase and sale of long-term assets,(b)the purchase and sale of trading investments,and (c)lending and collecting on loans.

The accounting principle which requires that noncash financing and investing activities are reported on the statement of cash flows is the principle of:

While analyzing Tektron's statement of cash flows,you note that there was a net cash outflow from investing activities of $87,000,while cash provided by operations was $95,000.This means that:

Dispositions of long-term assets:

Examples of transactions that must be disclosed as noncash investing and financing activities include:

Under the indirect method,a decrease in accounts payable will be added to net income.

The sale of equipment increases investing cash flows.

Many business decisions are based on cash flow evaluations.

Reporting of financing activities is the same under both the direct and the indirect methods.

Investing activities include: (a)the purchase and sale of long-term assets,(b)lending and collecting on notes receivable,(c)the purchase and sale of investments other than cash equivalents.

Financing activities include receiving dividends from investments in other companies.

A noncash purchase of land is reported in the investing section of the statement of cash flows as a separate line item.

The statement of cash flows helps analysts evaluate whether a company has enough cash to:

In each of the following cases,use the information provided about the current year operations of Lora Company to calculate the indicated cash flow item.

The proceeds from the disposal of property,plant and equipment are reported on the statement of cash flows as cash used by investing activities.

Which of the following is included in cash flows from financing activities?

Managers use cash flow predictions to:

A change in retained earnings can be due to payment of cash dividends

Property,plant and Equipment,and Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Analyzing Financial Statements

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