Question 1

The indirect 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. 
B)  Separately lists each major item of operating cash payments. 
C)  Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
D)  Separately lists each major item of operating cash receipts and payments. 
E)  All of these answers are correct. 
A)  Separately lists each major item of operating cash receipts. 
B)  Separately lists each major item of operating cash payments. 
C)  Reports net income and then adjusts it for items necessary to determine net cash provided or used by operating activities. 
D)  Separately lists each major item of operating cash receipts and payments. 
E)  All of these answers are correct.

Question 2

The statement of cash flows helps financial statement users evaluate a company's earnings performance at a point in time.

Accepted Answer

A) True 
 B)False

Question 3

Cash outflows to repurchase shares is an example of a cash flow from a financing activity.

Accepted Answer

A) True 
 B)False

Question 4

Which one of the following is representative of typical cash flows from operating activities?

Accepted Answer

A)  Receipts of cash dividends. 
B)  Repayment of cash loans. 
C)  Proceeds from the issuance of bonds and notes payable. 
D)  Payments to acquire equity securities of other companies. 
E)  Proceeds from collecting the principal amount of loans. 
A)  Receipts of cash dividends. 
B)  Repayment of cash loans. 
C)  Proceeds from the issuance of bonds and notes payable. 
D)  Payments to acquire equity securities of other companies. 
E)  Proceeds from collecting the principal amount of loans.

Question 5

Noncash financing and investing activities are disclosed in (1)____________,or (2)___________________.

Accepted Answer

A e; a separate sche

Question 6

Use Blizzard Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the:
(a)Direct Method
(b)Indirect Method

Accepted Answer

The answer of Use Blizzard Corp's income statement and balance...

Question 7

Non-cash investing and financing activities may be disclosed:

Accepted Answer

A)  In a note to the statement of cash flows. 
B)  In a separate schedule attached to the bottom of the statement of cash flows. 
C)  In the investing section of the statement of cash flows. 
D)  In the financing section of the statement of cash flows. 
E)  In a note to the statement of cash flows or in a separate schedule attached to the bottom of the statement of cash flows. 
A)  In a note to the statement of cash flows. 
B)  In a separate schedule attached to the bottom of the statement of cash flows. 
C)  In the investing section of the statement of cash flows. 
D)  In the financing section of the statement of cash flows. 
E)  In a note to the statement of cash flows or in a separate schedule attached to the bottom of the statement of cash flows.

Question 8

A loss on the disposal of a long-term asset:

Accepted Answer

A)  Involves cash inflows. 
B)  Involves cash outflows. 
C)  Does not reflect any cash flow. 
D)  Is the result of an investing activity. 
E)  Does not reflect any cash flow and is the result of an investing activity. 
A)  Involves cash inflows. 
B)  Involves cash outflows. 
C)  Does not reflect any cash flow. 
D)  Is the result of an investing activity. 
E)  Does not reflect any cash flow and is the result of an investing activity.

Question 9

Cash dividends and interest received can only be considered cash inflows from investing activities.

Accepted Answer

A) True 
 B)False

Question 10

Lil Bean Co.'s income statement showed the following for the year ended December 31,2015: net income,$86,000; depreciation expense,$32,000; and gain on sale of plant assets,$7,000.An examination of the company's current assets and current liabilities showed that the following changes occurred because of operating activities: accounts receivable decreased $4,500; merchandise inventory increased $6,200; prepaid expenses increased $4,500; accounts payable decreased $3,000.Using the indirect method,calculate the net cash provided (or used)by operating activities.

Accepted Answer

The answer of Lil Bean Co.'s income statement showed the...

Question 11

Use Boo Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the:
(a)Direct Method
(b)Indirect Method

Accepted Answer

The answer of Use Boo Corp's income statement and balance...

Question 12

Bank overdrafts repayable on demand may be included in the cash and cash equivalent balance.

Accepted Answer

A) True 
 B)False

Question 13

The appropriate statement of cash flow activity category for the issuance of common shares for cash is:

Accepted Answer

A)  Operating. 
B)  Financing. 
C)  Investing. 
D)  Schedule of noncash investing or financing activity. 
E)  Not reported on the statement of cash flows. 
A)  Operating. 
B)  Financing. 
C)  Investing. 
D)  Schedule of noncash investing or financing activity. 
E)  Not reported on the statement of cash flows.

Question 14

Decisions on whether a company can pay its existing debts as they mature can be evaluated by looking at the company's statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 15

Hope Corporation's calendar year-end 2015 and 2014 balance sheets showed the following items:   Additional information about the corporation's activities during 2015 follows:   Prepare a statement of cash flows for calendar 2015 that follows the indirect method of calculating the net cash provided (or used)by operating activities.

Accepted Answer

The answer of Hope Corporation's calendar year-end 2015 and 2014...

Question 16

Forsyth Corp had the following financial data related to the years ended December 31,Year 1 and 2:     Using the indirect method,calculate net cash provided by operating activities.

Accepted Answer

The answer of Forsyth Corp had the following financial data...

Question 17

From the following information,calculate the net cash provided (or used)by investing activities:

Accepted Answer

Cash flows

Question 18

Perry Corp had the following financial data related to the years ended December 31:

Accepted Answer

The answer of Perry Corp had the following financial data...

Question 19

Cash flows from cash dividends and interest received are reported in the statement of cash flows as:

Accepted Answer

A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Noncash activities. 
E)  Not reported. 
A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Noncash activities. 
E)  Not reported.

Question 20

Both the direct and indirect methods yield the same net cash flow provided (used)by investing activities.

Accepted Answer

A) True 
 B)False

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

The statement of cash flows helps financial statement users evaluate a company's earnings performance at a point in time.

Cash outflows to repurchase shares is an example of a cash flow from a financing activity.

Which one of the following is representative of typical cash flows from operating activities?

Noncash financing and investing activities are disclosed in (1),or (2)_______.

Use Blizzard Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the: (a)Direct Method (b)Indirect Method

Non-cash investing and financing activities may be disclosed:

A loss on the disposal of a long-term asset:

Cash dividends and interest received can only be considered cash inflows from investing activities.

Use Boo Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the: (a)Direct Method (b)Indirect Method

Bank overdrafts repayable on demand may be included in the cash and cash equivalent balance.

The appropriate statement of cash flow activity category for the issuance of common shares for cash is:

Decisions on whether a company can pay its existing debts as they mature can be evaluated by looking at the company's statement of cash flows.

Forsyth Corp had the following financial data related to the years ended December 31,Year 1 and 2: Using the indirect method,calculate net cash provided by operating activities.

From the following information,calculate the net cash provided (or used)by investing activities:

Perry Corp had the following financial data related to the years ended December 31:

Cash flows from cash dividends and interest received are reported in the statement of cash flows as:

Both the direct and indirect methods yield the same net cash flow provided (used)by investing activities.

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

Filters

Exam 17: Reporting and Analyzing Cash Flows

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

The statement of cash flows helps financial statement users evaluate a company's earnings performance at a point in time.

Cash outflows to repurchase shares is an example of a cash flow from a financing activity.

Which one of the following is representative of typical cash flows from operating activities?

Noncash financing and investing activities are disclosed in (1)____________,or (2)___________________.

Use Blizzard Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the: (a)Direct Method (b)Indirect Method

Non-cash investing and financing activities may be disclosed:

A loss on the disposal of a long-term asset:

Cash dividends and interest received can only be considered cash inflows from investing activities.

Use Boo Corp's income statement and balance sheet information to calculate the net cash provided by operating activities,using the: (a)Direct Method (b)Indirect Method

Bank overdrafts repayable on demand may be included in the cash and cash equivalent balance.

The appropriate statement of cash flow activity category for the issuance of common shares for cash is:

Decisions on whether a company can pay its existing debts as they mature can be evaluated by looking at the company's statement of cash flows.

Forsyth Corp had the following financial data related to the years ended December 31,Year 1 and 2: Using the indirect method,calculate net cash provided by operating activities.

From the following information,calculate the net cash provided (or used)by investing activities:

Perry Corp had the following financial data related to the years ended December 31:

Cash flows from cash dividends and interest received are reported in the statement of cash flows as:

Both the direct and indirect methods yield the same net cash flow provided (used)by investing activities.

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

Filters

Noncash financing and investing activities are disclosed in (1),or (2)_______.