Question 1

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

Accepted Answer

A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Noncash activities. 
E) This is not reported in the statement of cash flows. 
A) Operating activities. 
B) Financing activities. 
C) Investing activities. 
D) Noncash activities. 
E) This is not reported in the statement of cash flows.

Question 2

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using 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 3

The statement of cash flows helps analysts evaluate all but which of the following?

Accepted Answer

A) Ability of the company to generate profit. 
B) Source of cash used for plant expansion. 
C) Differences between net income and net operating cash flow. 
D) Source of cash used to finance investing activities. 
E) Source of cash used for debt repayments. 
A) Ability of the company to generate profit. 
B) Source of cash used for plant expansion. 
C) Differences between net income and net operating cash flow. 
D) Source of cash used to finance investing activities. 
E) Source of cash used for debt repayments.

Question 4

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

Accepted Answer

The statement of cash flows involves rep

Question 5

Investing activities do not include the:

Accepted Answer

A) Purchase of plant assets. 
B) Lending and collecting on notes receivable. 
C) Issuance of common stock. 
D) Sale of plant assets. 
E) Sale of short-term investments other than cash equivalents. 
A) Purchase of plant assets. 
B) Lending and collecting on notes receivable. 
C) Issuance of common stock. 
D) Sale of plant assets. 
E) Sale of short-term investments other than cash equivalents.

Question 6

Use the following information to calculate cash received as dividends from investments in other companies' stock:

Accepted Answer

A) $63,500. 
B) $63,000. 
C) $64,000. 
D) $67,100. 
E) $60,400. 
A) $63,500. 
B) $63,000. 
C) $64,000. 
D) $67,100. 
E) $60,400.

Question 7

Scranton, Inc. reports net income of $230,000 for the year ended December 31. It also reports $87,700 depreciation expense and a $5,000 gain on the sale of equipment. Its comparative balance sheet reveals a $35,500 decrease in accounts receivable, a $15,750 increase in accounts payable, and a $12,500 decrease in wages payable. Calculate the cash provided (used) in operating activities using the indirect method.

Accepted Answer

A) $376,450. 
B) $351,450. 
C) $356,450. 
D) $319,950. 
E) $263,750. 
A) $376,450. 
B) $351,450. 
C) $356,450. 
D) $319,950. 
E) $263,750.

Question 8

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2. Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2. Calculate its cash flow on total assets ratio for both years. Comment on the results.

Accepted Answer

@#IMG-DLM& Comment: The company had an increase in

Question 9

The statement of cash flows cannot help address questions such as:

Accepted Answer

A) How is the increase in investments financed? 
B) What is the source of cash for new plant assets? 
C) How much cash is generated from or used in operations? 
D) How much of the company's revenues have been retained as profit? 
E) Why is cash flow from operations different from income? 
A) How is the increase in investments financed? 
B) What is the source of cash for new plant assets? 
C) How much cash is generated from or used in operations? 
D) How much of the company's revenues have been retained as profit? 
E) Why is cash flow from operations different from income?

Question 10

Which of the following items is reported on the statement of cash flows under financing activities?

Accepted Answer

A) Declaration of a cash dividend. 
B) Payment of a cash dividend. 
C) Declaration of a stock dividend. 
D) Payment of a stock dividend. 
E) Stock split. 
A) Declaration of a cash dividend. 
B) Payment of a cash dividend. 
C) Declaration of a stock dividend. 
D) Payment of a stock dividend. 
E) Stock split.

Question 11

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

Accepted Answer

A) Proceeds from collecting the principal amounts of loans. 
B) Repayment of principals on loans. 
C) Proceeds from the issuance of bonds and notes payable. 
D) Payments by a merchandiser to acquire equity securities of other companies. 
E) Receipts of cash sales. 
A) Proceeds from collecting the principal amounts of loans. 
B) Repayment of principals on loans. 
C) Proceeds from the issuance of bonds and notes payable. 
D) Payments by a merchandiser to acquire equity securities of other companies. 
E) Receipts of cash sales.

Question 12

Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

Accepted Answer

A) $79,000. 
B) $201,000. 
C) $95,000. 
D) $50,000. 
E) $69,000. 
A) $79,000. 
B) $201,000. 
C) $95,000. 
D) $50,000. 
E) $69,000.

Question 13

A company had average total assets of $3,216,000, total cash flows of $1,320,000, cash flows from operations of $554,000, and cash flows for plant assets of $850,000. The cash flow on total assets ratio equals:

Accepted Answer

A) 41.04%. 
B) 41.97%. 
C) 26.43%. 
D) 17.23%. 
E) 64.39%. 
A) 41.04%. 
B) 41.97%. 
C) 26.43%. 
D) 17.23%. 
E) 64.39%.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

Accepted Answer

A) True 
 B)False

Question 16

Holly Oaks, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from operating activities using the indirect method:

Accepted Answer

A) $373,200. 
B) $170,000. 
C) $267,000. 
D) $329,900. 
E) $256,000. 
A) $373,200. 
B) $170,000. 
C) $267,000. 
D) $329,900. 
E) $256,000.

Question 17

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

Accepted Answer

A) True 
 B)False

Question 18

The full disclosure principle requires that noncash investing and financing activities be disclosed in the financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Information to prepare the statement of cash flows usually comes from three sources: (1) _______________, (2) _______________________, and (3) ____________________.

Accepted Answer

comparative balance

Question 20

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

Accepted Answer

The direct method for reporting cash flo

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

The statement of cash flows helps analysts evaluate all but which of the following?

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

Investing activities do not include the:

Use the following information to calculate cash received as dividends from investments in other companies' stock:

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2. Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2. Calculate its cash flow on total assets ratio for both years. Comment on the results.

The statement of cash flows cannot help address questions such as:

Which of the following items is reported on the statement of cash flows under financing activities?

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

Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

A company had average total assets of $3,216,000, total cash flows of $1,320,000, cash flows from operations of $554,000, and cash flows for plant assets of $850,000. The cash flow on total assets ratio equals:

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

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

Holly Oaks, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from operating activities using the indirect method:

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

The full disclosure principle requires that noncash investing and financing activities be disclosed in the financial statements.

Information to prepare the statement of cash flows usually comes from three sources: (1) ___, (2) _, and (3) __________.

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

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Exam 12: Reporting and Analyzing Cash Flows

Cash flows from interest received on loans are reported in the statement of cash flows as part of:

The first line item in the operating activities section of a spreadsheet for a statement of cash flows prepared using the indirect method is:

The statement of cash flows helps analysts evaluate all but which of the following?

Describe the format of the statement of cash flows, including the reporting of significant noncash investing and financing activities.

Investing activities do not include the:

Use the following information to calculate cash received as dividends from investments in other companies' stock:

A company reported average total assets of $501,000 in Year 1 and $611,000 in Year 2. Its net operating cash flow in Year 1 was $41,500 and $55,250 in Year 2. Calculate its cash flow on total assets ratio for both years. Comment on the results.

The statement of cash flows cannot help address questions such as:

Which of the following items is reported on the statement of cash flows under financing activities?

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

Bagwell's net income for the year ended December 31, Year 2 was $175,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash paid for dividends during Year 2.

A company had average total assets of $3,216,000, total cash flows of $1,320,000, cash flows from operations of $554,000, and cash flows for plant assets of $850,000. The cash flow on total assets ratio equals:

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

Financing activities include receiving cash from issuing debt and receiving cash dividends from investments in other companies' stocks.

Holly Oaks, Inc. is preparing the company's statement of cash flows for the fiscal year just ended. Using the following information, determine the amount of cash flows from operating activities using the indirect method:

A purchase of land in exchange for shares of stock is disclosed at the bottom of the statement of cash flows or in a note to the statement.

The full disclosure principle requires that noncash investing and financing activities be disclosed in the financial statements.

Information to prepare the statement of cash flows usually comes from three sources: (1) _______________, (2) _______________________, and (3) ____________________.

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

Introducing Financial Accounting

Accounting System and Financial Statements

Adjusting Accounts for Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Term Assets

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Analyzing and Interpreting Financial Statements

Applying Present and Future Values

Investments and International Operations

Reporting and Analyzing Partnerships

Filters

Information to prepare the statement of cash flows usually comes from three sources: (1) ___, (2) _, and (3) __________.