Question 1

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

Accepted Answer

A)  For income statement items involving operating activities that do not affect cash inflows or outflows. 
B)  To eliminate gains and losses resulting from investing and financing activities. 
C)  For changes in noncash current assets and current liabilities. 
D)  For income statement items involving operating activities that do not affect cash inflows or outflows and for changes in noncash current assets and current liabilities. 
E)  All of these answers are correct. 
A)  For income statement items involving operating activities that do not affect cash inflows or outflows. 
B)  To eliminate gains and losses resulting from investing and financing activities. 
C)  For changes in noncash current assets and current liabilities. 
D)  For income statement items involving operating activities that do not affect cash inflows or outflows and for changes in noncash current assets and current liabilities. 
E)  All of these answers are correct.

Question 2

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 3

Genesis reported that bonds with a face value of $100,000 and a carrying value of $67,000 are retired for $60,000 cash,resulting in a loss of $7,000.The amount to be reported in the financing section is:

Accepted Answer

A)  $(3,000). 
B)  $57,000. 
C)  $58,000. 
D)  $60,000. 
E)  This item is not reported. 
A)  $(3,000). 
B)  $57,000. 
C)  $58,000. 
D)  $60,000. 
E)  This item is not reported.

Question 4

Discuss the differences between operating,investing,and financing activities.

Accepted Answer

Operating activities involve the day-to-

Question 5

Use the following information to prepare Macie Co.'s statement of cash flows (according to the direct method)for the year ended December 31,2015.

Accepted Answer

The answer of Use the following information to prepare Macie...

Question 6

Burton purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 7

Using the indirect method to calculate net cash provided (or used)by operating activities,which of the following is subtracted from net income?

Accepted Answer

A)  Depreciation expense. 
B)  Amortization of intangible assets. 
C)  Decrease in income taxes payable. 
D)  Bad debts expense. 
E)  None of these answers is correct. 
A)  Depreciation expense. 
B)  Amortization of intangible assets. 
C)  Decrease in income taxes payable. 
D)  Bad debts expense. 
E)  None of these answers is correct.

Question 8

Explain the value of the statement of cash flows in analyzing cash flows.

Accepted Answer

By dividing cash flows into three catego

Question 9

Identify the impact of long-term asset transactions on cash flows.

Accepted Answer

The acquisition and disposal o

Question 10

A transfer from retained earnings to common shares in a share dividend transaction should be reported in the statement of cash flows as:

Accepted Answer

A)  An operating activity. 
B)  A note or separate schedule. 
C)  An investing activity. 
D)  A financing activity. 
E)  Should not be reported in the statement of cash flows. 
A)  An operating activity. 
B)  A note or separate schedule. 
C)  An investing activity. 
D)  A financing activity. 
E)  Should not be reported in the statement of cash flows.

Question 11

The direct method of preparing the statement of cash flows separately lists each major item of operating cash receipts and each major item of operating cash payments.

Accepted Answer

A) True 
 B)False

Question 12

Noncash financing activities are disclosed in a note in the financing section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 13

Acquisitions of long-term assets are ___________ activities and are reported in the ___________ activities section of the statement of cash flows.

Accepted Answer

Investing;

Question 14

Explain the purpose and importance of cash flow information.

Accepted Answer

The purpose of the statement of cash flo

Question 15

Use the information provided about the current year operations of Upper Down Company to calculate cash paid for merchandise.

Accepted Answer

A)  $110,800. 
B)  $111,200. 
C)  $111,600. 
D)  $112,800. 
E)  $112,900. 
A)  $110,800. 
B)  $111,200. 
C)  $111,600. 
D)  $112,800. 
E)  $112,900.

Question 16

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

Accepted Answer

Although not recommended by the IFRS,the

Question 17

The statement of cash flows reports:

Accepted Answer

A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Noncash financing and investing activities. 
E)  All of these answers are correct. 
A)  Operating activities. 
B)  Financing activities. 
C)  Investing activities. 
D)  Noncash financing and investing activities. 
E)  All of these answers are correct.

Question 18

Acquisitions of long-term assets:

Accepted Answer

A)  Have no impact on cash flows. 
B)  Are investing activities. 
C)  Can involve cash outflows. 
D)  Are investing activities and can involve cash outflows. 
E)  Have no impact on cash flows and are investing activities. 
A)  Have no impact on cash flows. 
B)  Are investing activities. 
C)  Can involve cash outflows. 
D)  Are investing activities and can involve cash outflows. 
E)  Have no impact on cash flows and are investing activities.

Question 19

A cash equivalent is an investment that:

Accepted Answer

A)  Is readily convertible to a known amount of cash. 
B)  Is subject to an insignificant risk of changes in value. 
C)  Is within 3 months of its maturity date. 
D)  Is highly liquid. 
E)  All of these answers are correct. 
A)  Is readily convertible to a known amount of cash. 
B)  Is subject to an insignificant risk of changes in value. 
C)  Is within 3 months of its maturity date. 
D)  Is highly liquid. 
E)  All of these answers are correct.

Question 20

Which of the following items is reported in the body of the statement of cash flows?

Accepted Answer

A)  Declaration of a cash dividend. 
B)  Payment of a cash dividend. 
C)  Declaration of a share dividend. 
D)  Distribution of a share dividend. 
E)  Share split. 
A)  Declaration of a cash dividend. 
B)  Payment of a cash dividend. 
C)  Declaration of a share dividend. 
D)  Distribution of a share dividend. 
E)  Share split.

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

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

Genesis reported that bonds with a face value of $100,000 and a carrying value of $67,000 are retired for $60,000 cash,resulting in a loss of $7,000.The amount to be reported in the financing section is:

Discuss the differences between operating,investing,and financing activities.

Use the following information to prepare Macie Co.'s statement of cash flows (according to the direct method)for the year ended December 31,2015.

Burton purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows.

Using the indirect method to calculate net cash provided (or used)by operating activities,which of the following is subtracted from net income?

Explain the value of the statement of cash flows in analyzing cash flows.

Identify the impact of long-term asset transactions on cash flows.

A transfer from retained earnings to common shares in a share dividend transaction should be reported in the statement of cash flows as:

The direct method of preparing the statement of cash flows separately lists each major item of operating cash receipts and each major item of operating cash payments.

Noncash financing activities are disclosed in a note in the financing section of the statement of cash flows.

Acquisitions of long-term assets are _ activities and are reported in the _ activities section of the statement of cash flows.

Explain the purpose and importance of cash flow information.

Use the information provided about the current year operations of Upper Down Company to calculate cash paid for merchandise.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

The statement of cash flows reports:

Acquisitions of long-term assets:

A cash equivalent is an investment that:

Which of the following items is reported in the body of the statement of cash flows?

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 preparation of the operating activities section of the statement of cash flows involves adjustments:

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

Genesis reported that bonds with a face value of $100,000 and a carrying value of $67,000 are retired for $60,000 cash,resulting in a loss of $7,000.The amount to be reported in the financing section is:

Discuss the differences between operating,investing,and financing activities.

Use the following information to prepare Macie Co.'s statement of cash flows (according to the direct method)for the year ended December 31,2015.

Burton purchased equipment for $150,000 by paying $50,000 and signing a $100,000 note payable.The entire transaction is disclosed to users on the statement of cash flows.

Using the indirect method to calculate net cash provided (or used)by operating activities,which of the following is subtracted from net income?

Explain the value of the statement of cash flows in analyzing cash flows.

Identify the impact of long-term asset transactions on cash flows.

A transfer from retained earnings to common shares in a share dividend transaction should be reported in the statement of cash flows as:

The direct method of preparing the statement of cash flows separately lists each major item of operating cash receipts and each major item of operating cash payments.

Noncash financing activities are disclosed in a note in the financing section of the statement of cash flows.

Acquisitions of long-term assets are ___________ activities and are reported in the ___________ activities section of the statement of cash flows.

Explain the purpose and importance of cash flow information.

Use the information provided about the current year operations of Upper Down Company to calculate cash paid for merchandise.

Explain how the cash flows from operating activities section of the statement of cash flows is prepared using the indirect method.

The statement of cash flows reports:

Acquisitions of long-term assets:

A cash equivalent is an investment that:

Which of the following items is reported in the body of the statement of cash flows?

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

Acquisitions of long-term assets are _ activities and are reported in the _ activities section of the statement of cash flows.