Question 1

From the following information,prepare a schedule of noncash investing and financing activities:

Accepted Answer

The answer of From the following information,prepare a schedule of...

Question 2

The increase or decrease in cash equals the current period's cash balance minus the prior period's cash balance.

Accepted Answer

A) True 
 B)False

Question 3

The direct method is required by IFRS because it provides greater detail regarding operating cash flows.

Accepted Answer

A) True 
 B)False

Question 4

Use the following information about the calendar 2015 cash flows of Crash Co.to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.

Accepted Answer

The answer of Use the following information about the calendar...

Question 5

The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is:

Accepted Answer

A)  Cash. 
B)  Cash received from customers. 
C)  Increase (decrease)in accounts receivable. 
D)  Net income. 
E)  Adjustments to net incomE. 
A)  Cash. 
B)  Cash received from customers. 
C)  Increase (decrease)in accounts receivable. 
D)  Net income. 
E)  Adjustments to net incomE.

Question 6

If a company borrows money from a bank,the interest paid should be reported on the statement of cash flows as a(n):

Accepted Answer

A)  Operating activity. 
B)  Investing activity. 
C)  Financing activity. 
D)  Noncash investing and financing activity. 
E)  Cannot be determined from the information given. 
A)  Operating activity. 
B)  Investing activity. 
C)  Financing activity. 
D)  Noncash investing and financing activity. 
E)  Cannot be determined from the information given.

Question 7

Explain how the cash flows from operating activities in the statement of cash flows is prepared using the direct method.

Accepted Answer

The direct method for reporting net cash

Question 8

Using the indirect method to calculate the net cash provided (or used)by operating activities,net income is adjusted for:

Accepted Answer

A)  Gains and losses from investing and financing activities. 
B)  Revenues and expenses that did not provide or use cash. 
C)  Changes in noncash current assets and current liabilities related to operating activities. 
D)  Gains and losses from investing and financing activities and revenues and expenses that did not provide or use cash. 
E)  All of these answers are correct. 
A)  Gains and losses from investing and financing activities. 
B)  Revenues and expenses that did not provide or use cash. 
C)  Changes in noncash current assets and current liabilities related to operating activities. 
D)  Gains and losses from investing and financing activities and revenues and expenses that did not provide or use cash. 
E)  All of these answers are correct.

Question 9

The purchase of long-term assets by issuing a note payable is reported on the statement of cash flows in the:

Accepted Answer

A)  Operating section. 
B)  Financing section. 
C)  Investing section. 
D)  Notes to the statement of cash flows. 
E)  Both financing and investing sections. 
A)  Operating section. 
B)  Financing section. 
C)  Investing section. 
D)  Notes to the statement of cash flows. 
E)  Both financing and investing sections.

Question 10

The most important section of the statement of cash flows in analyzing the financial health of a business is the ____________ section.

Accepted Answer

Operating

Question 11

Under IFRS,the payment of cash dividends to shareholders can be classified as either a financing activity or operating activity.

Accepted Answer

A) True 
 B)False

Question 12

Under the indirect method,decreases in non-cash current assets are added to net income.

Accepted Answer

A) True 
 B)False

Question 13

For each of the following independent cases,use the information provided to calculate the missing cash inflow/outflow:

Accepted Answer

The answer of For each of the following independent cases,use...

Question 14

Explain how cash flows from investing and financing activities are determined.

Accepted Answer

Cash flows from investing and financing

Question 15

The statement of cash flows only measures outflows of cash during a period.

Accepted Answer

A) True 
 B)False

Question 16

Firms have the option of using either the direct or indirect method to prepare the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 17

The three-step process in determining net cash inflows (outflows)from investing activities are: (1)identify changes in investing-related accounts; (2)explain these changes using reconstruction analysis; (3)report cash flow effects.

Accepted Answer

A) True 
 B)False

Question 18

The usual statement of cash flow activity category for the receipt of cash dividends from share investments 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 19

Describe the format of the statement of cash flows.

Accepted Answer

The statement of cash flows involves rep

Question 20

The direct method calculates the net cash inflows (outflows)from operating activities by adjusting accrual net income to a cash basis.

Accepted Answer

A) True 
 B)False

From the following information,prepare a schedule of noncash investing and financing activities:

The increase or decrease in cash equals the current period's cash balance minus the prior period's cash balance.

The direct method is required by IFRS because it provides greater detail regarding operating cash flows.

Use the following information about the calendar 2015 cash flows of Crash Co.to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.

The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is:

If a company borrows money from a bank,the interest paid should be reported on the statement of cash flows as a(n):

Explain how the cash flows from operating activities in the statement of cash flows is prepared using the direct method.

Using the indirect method to calculate the net cash provided (or used)by operating activities,net income is adjusted for:

The purchase of long-term assets by issuing a note payable is reported on the statement of cash flows in the:

The most important section of the statement of cash flows in analyzing the financial health of a business is the ____________ section.

Under IFRS,the payment of cash dividends to shareholders can be classified as either a financing activity or operating activity.

Under the indirect method,decreases in non-cash current assets are added to net income.

For each of the following independent cases,use the information provided to calculate the missing cash inflow/outflow:

Explain how cash flows from investing and financing activities are determined.

The statement of cash flows only measures outflows of cash during a period.

Firms have the option of using either the direct or indirect method to prepare the statement of cash flows.

The three-step process in determining net cash inflows (outflows)from investing activities are: (1)identify changes in investing-related accounts; (2)explain these changes using reconstruction analysis; (3)report cash flow effects.

The usual statement of cash flow activity category for the receipt of cash dividends from share investments is:

Describe the format of the statement of cash flows.

The direct method calculates the net cash inflows (outflows)from operating activities by adjusting accrual net income to a cash basis.

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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Exam 17: Reporting and Analyzing Cash Flows

From the following information,prepare a schedule of noncash investing and financing activities:

The increase or decrease in cash equals the current period's cash balance minus the prior period's cash balance.

The direct method is required by IFRS because it provides greater detail regarding operating cash flows.

Use the following information about the calendar 2015 cash flows of Crash Co.to prepare a statement of cash flows (direct method)and a schedule of noncash investing and financing activities.

The first item reported in the operating activities section for a statement of cash flows prepared according to the indirect method is:

If a company borrows money from a bank,the interest paid should be reported on the statement of cash flows as a(n):

Explain how the cash flows from operating activities in the statement of cash flows is prepared using the direct method.

Using the indirect method to calculate the net cash provided (or used)by operating activities,net income is adjusted for:

The purchase of long-term assets by issuing a note payable is reported on the statement of cash flows in the:

The most important section of the statement of cash flows in analyzing the financial health of a business is the ____________ section.

Under IFRS,the payment of cash dividends to shareholders can be classified as either a financing activity or operating activity.

Under the indirect method,decreases in non-cash current assets are added to net income.

For each of the following independent cases,use the information provided to calculate the missing cash inflow/outflow:

Explain how cash flows from investing and financing activities are determined.

The statement of cash flows only measures outflows of cash during a period.

Firms have the option of using either the direct or indirect method to prepare the statement of cash flows.

The three-step process in determining net cash inflows (outflows)from investing activities are: (1)identify changes in investing-related accounts; (2)explain these changes using reconstruction analysis; (3)report cash flow effects.

The usual statement of cash flow activity category for the receipt of cash dividends from share investments is:

Describe the format of the statement of cash flows.

The direct method calculates the net cash inflows (outflows)from operating activities by adjusting accrual net income to a cash basis.

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