Exam 21: Statement of Cash Flows Revisited

The conversion of nonparticipating preferred stock into common stock should be presented in a statement of cash flows as a(n)

Jacquin Corporation reports its income from investments under the equity method and recognized income of $15,000 from its investment in Trapper Company during the current year.Trapper declared no dividends during the current year.On Jacquin's statement of cash flows the $15,000 would

When preparing a reconciliation of net income to cash from operations,an increase in the ending inventory over the beginning inventory will result in an adjustment to reported net income because

A firm's accumulated depreciation account increased $30,000 for the year and total plant assets at cost increased $200,000.During the year,the firm purchased $350,000 of new equipment for cash,and sold equipment for $50,000 cash.This equipment had been depreciated $30,000 at the time of the sale.What is the complete disclosure of these events in the statement of cash flows prepared under the direct method?

In preparing a statement of cash flows,the reconciliation of net income to cash from operating activities does NOT include

Which of the following transactions would not be reported on the statement of cash flows?

At the beginning of the year,a firm leased equipment on a capital lease,capitalizing $50,000 in both its lease liability and leased assets accounts.The contract calls for payments each December 31 of $10,000.The lessee's annual reporting period ends December 31 and the contract reflects 10% interest.The lessee made the first payment as required.Which of the following should be reflected on the statement of cash flows under the indirect method for the first year of the contract (ignoring noncash disclosures)?

Amortization of the premium on bonds payable is subtracted from net income in the reconciliation of net income to cash flows from operations because

A loss on the sale of machinery in the ordinary course of business should be presented in a statement of cash flows prepared under the indirect method as a(n)

Under the direct method,cash paid to suppliers can be computed as cost of goods sold for the period

Choose the combination that best reflects the appropriate classification of cash paid for investing and financing activities. Cash Paid for Cash Paid for Investing Activities Financing Activities

Which of the following is NOT classified as an operating activity?

Which of the following is NOT required by generally accepted accounting principles?

Choose the combination that best reflects the appropriate classification of cash received from operating,investing and financing activities. Operating Investing Financing

Which of the following would be reported in the operating,investing,or financing sections of the statement of cash flows prepared under the indirect method?

Choose the combination below that best reflects the appropriate classification of cash received from investing and financing activities. Cash Received from Cash Received from Investing Activities Financing Activities

At the beginning of the year,a firm leased equipment on a capital lease,capitalizing $60,000 in its lease receivable account.The contract calls for December 31 payments of $15,000.The lessor's annual reporting period ends December 31 and the contract reflects 10% interest.The lessee made the first payment as required.The direct method statement of cash flows for the lessor should reflect which of the following in the first year of the lease contract (ignore noncash disclosures)?

Use the following information to compute the cash flow from operating activities under (1)the U.S.approach,and (2)the U.K.approach.

Which of the following investments should be classified as cash equivalents for Lastima Company in preparing the statement of cash flows?

Which of the following causes a change in the amount of cash held by a company?