Question 1

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

Accepted Answer

A) True 
 B)False

Question 2

The reporting of financing activities is _________________ under the direct and indirect methods.

Accepted Answer

The answer of The reporting of financing activities is _________________...

Question 3

Under the indirect method,an increase in income taxes payable is added to net income when preparing the operating section of the statement of cash flows.

Accepted Answer

A) True 
 B)False

Question 4

Use the indirect method to calculate the net cash provided (or used)by operating activities based on the following information:

Accepted Answer

A)  $35,000. 
B)  $43,200. 
C)  $45,700. 
D)  $50,000. 
E)  $58,000. 
A)  $35,000. 
B)  $43,200. 
C)  $45,700. 
D)  $50,000. 
E)  $58,000.

Question 5

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period cash balance.

Accepted Answer

A) True 
 B)False

Question 6

Bad debts expense is an item that does not provide or use cash.

Accepted Answer

A) True 
 B)False

Question 7

The direct method of reporting operating cash flows:

Accepted Answer

A)  Is recommended by IFRS. 
B)  Is recommended,but not required,by IFRS. 
C)  Is used by most companies. 
D)  Is not required by IFRS. 
E)  All of these answers are correct. 
A)  Is recommended by IFRS. 
B)  Is recommended,but not required,by IFRS. 
C)  Is used by most companies. 
D)  Is not required by IFRS. 
E)  All of these answers are correct.

Question 8

Metro Ltd.'s Year 2 financial statements showed the following:     Determine the Year 2 cash flows from operating activities using the indirect method.

Accepted Answer

The answer of Metro Ltd.'s Year 2 financial statements showed...

Question 9

Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called:

Accepted Answer

A)  Operating activities. 
B)  Financing activities.. 
C)  Investing activities 
D)  Direct activities. 
E)  Indirect activities. 
A)  Operating activities. 
B)  Financing activities.. 
C)  Investing activities 
D)  Direct activities. 
E)  Indirect activities.

Question 10

IFRS encourages the use of the ______________ method in preparing the statement of cash flows.

Accepted Answer

The answer of IFRS encourages the use of the ______________...

Question 11

Friends Co.had the following financial data related to the year ended December 31:   Additional information:

Accepted Answer

The answer of Friends Co.had the following financial data related...

Question 12

The appropriate statement of cash flow activity category for the payment of wages 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 13

Most acquisitions of property,plant and equipment are reported on the statement of cash flows as cash used by investing activities.

Accepted Answer

A) True 
 B)False

Question 14

A machine with a cost of $190,000 and accumulated depreciation of $95,000 was sold for $50,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

Accepted Answer

A)  $50,000. 
B)  $80,000. 
C)  $120,000. 
D)  $35,000. 
E)  $45,000. 
A)  $50,000. 
B)  $80,000. 
C)  $120,000. 
D)  $35,000. 
E)  $45,000.

Question 15

Typical cash flows from investing activities include:

Accepted Answer

A)  Payments to purchase property,plant and equipment or other productive assets (excluding merchandise inventory). 
B)  Proceeds from the sale (discounting)of loans made by the enterprise. 
C)  Proceeds from collecting the principal amount of loans. 
D)  Payments to acquire debt securities of other entities. 
E)  All of these answers are correct. 
A)  Payments to purchase property,plant and equipment or other productive assets (excluding merchandise inventory). 
B)  Proceeds from the sale (discounting)of loans made by the enterprise. 
C)  Proceeds from collecting the principal amount of loans. 
D)  Payments to acquire debt securities of other entities. 
E)  All of these answers are correct.

Question 16

Internal users of the statement of cash flows use cash flow information to plan day-to-day operating activities and make long-term investments.

Accepted Answer

A) True 
 B)False

Question 17

The indirect method for preparation of the statement of cash flows calculates the net cash inflows (outflows)from operating activities by adjusting accrual net income to a cash basis.

Accepted Answer

A) True 
 B)False

Question 18

From the records of Abe's Door Service given below,calculate the cash provided (or used)by operations using the indirect method.Use a (+)or a (-)to indicate whether each item should be added to or subtracted from net income.

Accepted Answer

The answer of From the records of Abe's Door Service...

The statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

The reporting of financing activities is _________________ under the direct and indirect methods.

Under the indirect method,an increase in income taxes payable is added to net income when preparing the operating section of the statement of cash flows.

Use the indirect method to calculate the net cash provided (or used)by operating activities based on the following information:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period cash balance.

Bad debts expense is an item that does not provide or use cash.

The direct method of reporting operating cash flows:

Metro Ltd.'s Year 2 financial statements showed the following: Determine the Year 2 cash flows from operating activities using the indirect method.

Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called:

IFRS encourages the use of the ______________ method in preparing the statement of cash flows.

Friends Co.had the following financial data related to the year ended December 31: Additional information:

The appropriate statement of cash flow activity category for the payment of wages is:

Most acquisitions of property,plant and equipment are reported on the statement of cash flows as cash used by investing activities.

A machine with a cost of $190,000 and accumulated depreciation of $95,000 was sold for $50,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

Typical cash flows from investing activities include:

Internal users of the statement of cash flows use cash flow information to plan day-to-day operating activities and make long-term investments.

The indirect method for preparation of the statement of cash flows calculates the net cash inflows (outflows)from operating activities by adjusting accrual net income to a cash basis.

From the records of Abe's Door Service given below,calculate the cash provided (or used)by operations using the indirect method.Use a (+)or a (-)to indicate whether each item should be added to or subtracted from net income.

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 statement of cash flows explains the difference between the beginning and ending balances of cash and cash equivalents.

The reporting of financing activities is _________________ under the direct and indirect methods.

Under the indirect method,an increase in income taxes payable is added to net income when preparing the operating section of the statement of cash flows.

Use the indirect method to calculate the net cash provided (or used)by operating activities based on the following information:

The statement of cash flows explains how transactions and events impact the end-of-period cash balance to produce the end-of-period cash balance.

Bad debts expense is an item that does not provide or use cash.

The direct method of reporting operating cash flows:

Metro Ltd.'s Year 2 financial statements showed the following: Determine the Year 2 cash flows from operating activities using the indirect method.

Transactions with the owners of a business or transactions with its creditors to borrow money or to repay the principal amounts of loans are called:

IFRS encourages the use of the ______________ method in preparing the statement of cash flows.

Friends Co.had the following financial data related to the year ended December 31: Additional information:

The appropriate statement of cash flow activity category for the payment of wages is:

Most acquisitions of property,plant and equipment are reported on the statement of cash flows as cash used by investing activities.

A machine with a cost of $190,000 and accumulated depreciation of $95,000 was sold for $50,000 cash.The amount that should be reported as a source of cash under cash flows from investing activities is:

Typical cash flows from investing activities include:

Internal users of the statement of cash flows use cash flow information to plan day-to-day operating activities and make long-term investments.

The indirect method for preparation of the statement of cash flows calculates the net cash inflows (outflows)from operating activities by adjusting accrual net income to a cash basis.

From the records of Abe's Door Service given below,calculate the cash provided (or used)by operations using the indirect method.Use a (+)or a (-)to indicate whether each item should be added to or subtracted from net income.

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