Question 1

Noncash investing and financing activities,if material,are

Accepted Answer

A)  reported in the statement of cash flows under the "all-financial-resources concept." 
B)  reported in the statement of cash flows only if the indirect method is used. 
C)  disclosed in a note or separate schedule accompanying the statement of cash flows. 
D)  not reported or disclosed because they have no impact on cash. 
A)  reported in the statement of cash flows under the "all-financial-resources concept." 
B)  reported in the statement of cash flows only if the indirect method is used. 
C)  disclosed in a note or separate schedule accompanying the statement of cash flows. 
D)  not reported or disclosed because they have no impact on cash.

Question 2

A decrease in accounts receivable should be presented in a statement of cash flows (indirect method)as

Accepted Answer

A)  an inflow and outflow of cash. 
B)  an outflow of cash. 
C)  a deduction from net income. 
D)  an addition to net income. 
A)  an inflow and outflow of cash. 
B)  an outflow of cash. 
C)  a deduction from net income. 
D)  an addition to net income.

Question 3

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014:
  
-See information regarding Dingo Boot Company above.The net cash provided by (used in)all activities is

Accepted Answer

A)  $580,000. 
B)  $410,000. 
C)  $380,000. 
D)  $(60,000). 
A)  $580,000. 
B)  $410,000. 
C)  $380,000. 
D)  $(60,000).

Question 4

Stanner Company's 2014 income statement reported cost of goods sold as $135,000.Additional information is as follows:   If Stanner uses the direct method,what amount should Stanner report as cash paid to suppliers in its 2014 statement of cash flows?

Accepted Answer

A)  $121,000 
B)  $134,000 
C)  $149,000 
D)  $136,000 
A)  $121,000 
B)  $134,000 
C)  $149,000 
D)  $136,000

Question 5

The following information was taken from the 2014 financial statements of Glocken Corporation:   No accounts receivable were written off or recovered during the year.If Glocken prepares a statement of cash flows using the direct method,what amount should be reported as collected from customers in 2014?

Accepted Answer

A)  $2,239,000 
B)  $2,234,000 
C)  $2,146,000 
D)  $2,141,000 
A)  $2,239,000 
B)  $2,234,000 
C)  $2,146,000 
D)  $2,141,000

Question 6

During the year,Samuels Company reported net income of $300,000,including amortization of intangible assets of $66,000,depreciation of plant assets of $132,000,and amortization of premium on investment in bonds of $20,000.Applying the indirect method,cash provided by operating activities is what amount?

Accepted Answer

A)  $300,000 
B)  $518,000 
C)  $478,000 
D)  $498,000 
A)  $300,000 
B)  $518,000 
C)  $478,000 
D)  $498,000

Question 7

Almondine Company sold a computer for $50,000.The computer's original cost was $250,000,and the accumulated depreciation at the date of sale was $180,000.The sale of the computer should appear on Almondine's annual statement of cash flows (indirect method)as

Accepted Answer

A)  a reduction in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $50,000. 
B)  an increase in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $50,000. 
C)  a reduction in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $70,000. 
D)  an increase in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $70,000. 
A)  a reduction in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $50,000. 
B)  an increase in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $50,000. 
C)  a reduction in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $70,000. 
D)  an increase in cash flows from operating activities of $20,000 and an increase in cash flows from investing activities of $70,000.

Question 8

Thomson Company's income statement for the year ended December 31,2014,reported net income of $360,000.The financial statements also disclosed the following information:   Net cash provided by operating activities for 2014 should be reported as

Accepted Answer

A)  $84,000. 
B)  $204,000. 
C)  $234,000. 
D)  $324,000. 
A)  $84,000. 
B)  $204,000. 
C)  $234,000. 
D)  $324,000.

Question 9

Which of the following statements regarding cash equivalents is correct?

Accepted Answer

A)  A one-year Treasury note could not qualify as a cash equivalent. 
B)  All investments meeting the FASB's criteria for cash equivalents must be reported as such. 
C)  The date a security is purchased determines its "original maturity" for cash equivalent classification purposes. 
D)  Once established,management's policy for classifying items as cash equivalents cannot be changed. 
A)  A one-year Treasury note could not qualify as a cash equivalent. 
B)  All investments meeting the FASB's criteria for cash equivalents must be reported as such. 
C)  The date a security is purchased determines its "original maturity" for cash equivalent classification purposes. 
D)  Once established,management's policy for classifying items as cash equivalents cannot be changed.

Question 10

Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?

Accepted Answer

A)  Payment of cash dividends 
B)  Decrease in accounts payable 
C)  Increase in merchandise inventory 
D)  Loss on sale of machinery and equipment 
A)  Payment of cash dividends 
B)  Decrease in accounts payable 
C)  Increase in merchandise inventory 
D)  Loss on sale of machinery and equipment

Question 11

A review of the financial records of Stonehenge,Inc.for the current year revealed the following information:
       Explain how each of the preceding items is presented in the cash flow statement,indirect method,or disclosed in the financial statements of Stonehenge,Inc.Indicate "not included" for any item that would not be reported or disclosed.Evaluate each item separately.

Accepted Answer

The answer of A review of the financial records of...

Question 12

Net income for Parton Company for 2014 includes the effect of the following transactions involving the sale of fixed assets:   Purchases of fixed assets during 2014 amounted to $340,000.The Accumulated Depreciation account increased $40,000 during 2014.How much was depreciation expense for 2014?

Accepted Answer

A)  $175,000 
B)  $187,000 
C)  $197,000 
D)  $215,000 
A)  $175,000 
B)  $187,000 
C)  $197,000 
D)  $215,000

Question 13

The following data were taken from the books of Golden Company.
   Cash dividends of $169,000 were declared and paid during 2011.Also,$56,000 of preferred stock was issued during the period.
Compute the net cash flow provided by (used in)operating activities during 2014 for Golden Company.

Accepted Answer

The answer of The following data were taken from the...

Question 14

In a statement of cash flows,proceeds from issuing equity instruments should be classified as cash inflows from

Accepted Answer

A)  brokerage activities. 
B)  financing activities. 
C)  investing activities. 
D)  operating activities. 
A)  brokerage activities. 
B)  financing activities. 
C)  investing activities. 
D)  operating activities.

Question 15

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014:
  
-See information regarding Ding Boot Company above.The net cash provided by (used in)investing activities is

Accepted Answer

A)  $220,000. 
B)  $140,000. 
C)  $60,000. 
D)  $(80,000). 
A)  $220,000. 
B)  $140,000. 
C)  $60,000. 
D)  $(80,000).

Question 16

In preparing a statement of cash flows (indirect method),cash flows from operating activities

Accepted Answer

A)  is calculated as the difference between revenues and expenses plus the beginning cash balance. 
B)  is always equal to the sum of cash flows from investing activities and cash flows from financing activities. 
C)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that affect cash and accruals for current assets and current liabilities. 
D)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash. 
A)  is calculated as the difference between revenues and expenses plus the beginning cash balance. 
B)  is always equal to the sum of cash flows from investing activities and cash flows from financing activities. 
C)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that affect cash and accruals for current assets and current liabilities. 
D)  can be calculated by appropriately adding to or deducting from net income those items in the income statement that do not affect cash.

Question 17

The most likely situation in which reported earnings are positive but operations are consuming rather than generating cash would be a

Accepted Answer

A)  rapidly growing company. 
B)  company reporting large noncash expenses. 
C)  company using very conservative accounting standards that lower earnings. 
D)  company paying large cash dividends to its shareholders. 
A)  rapidly growing company. 
B)  company reporting large noncash expenses. 
C)  company using very conservative accounting standards that lower earnings. 
D)  company paying large cash dividends to its shareholders.

Question 18

The following information is available from Dodger Corporation's accounting records for the year ended December 31,2014:   Net cash flow provided by operating activities for 2014 was

Accepted Answer

A)  $520,000. 
B)  $500,000. 
C)  $460,000. 
D)  $440,000. 
A)  $520,000. 
B)  $500,000. 
C)  $460,000. 
D)  $440,000.

Question 19

Cash equivalents would not include short-term investments in

Accepted Answer

A)  money market funds. 
B)  available-for-sale securities. 
C)  commercial paper. 
D)  certificates of deposit. 
A)  money market funds. 
B)  available-for-sale securities. 
C)  commercial paper. 
D)  certificates of deposit.

Question 20

Which of the following is true?

Accepted Answer

A)  The IASB requires eight cash flow categories. 
B)  The Statement of Cash Flows is classified according to three main categories. 
C)  The IASB does not specifically require a Statement of Cash Flows. 
D)  The provisions of IAS 7 are less flexible than the U.S.rules. 
A)  The IASB requires eight cash flow categories. 
B)  The Statement of Cash Flows is classified according to three main categories. 
C)  The IASB does not specifically require a Statement of Cash Flows. 
D)  The provisions of IAS 7 are less flexible than the U.S.rules.

Noncash investing and financing activities,if material,are

A decrease in accounts receivable should be presented in a statement of cash flows (indirect method)as

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014: -See information regarding Dingo Boot Company above.The net cash provided by (used in)all activities is

Stanner Company's 2014 income statement reported cost of goods sold as $135,000.Additional information is as follows: If Stanner uses the direct method,what amount should Stanner report as cash paid to suppliers in its 2014 statement of cash flows?

Almondine Company sold a computer for $50,000.The computer's original cost was $250,000,and the accumulated depreciation at the date of sale was $180,000.The sale of the computer should appear on Almondine's annual statement of cash flows (indirect method)as

Thomson Company's income statement for the year ended December 31,2014,reported net income of $360,000.The financial statements also disclosed the following information: Net cash provided by operating activities for 2014 should be reported as

Which of the following statements regarding cash equivalents is correct?

Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?

Net income for Parton Company for 2014 includes the effect of the following transactions involving the sale of fixed assets: Purchases of fixed assets during 2014 amounted to $340,000.The Accumulated Depreciation account increased $40,000 during 2014.How much was depreciation expense for 2014?

The following data were taken from the books of Golden Company. Cash dividends of $169,000 were declared and paid during 2011.Also,$56,000 of preferred stock was issued during the period. Compute the net cash flow provided by (used in)operating activities during 2014 for Golden Company.

In a statement of cash flows,proceeds from issuing equity instruments should be classified as cash inflows from

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014: -See information regarding Ding Boot Company above.The net cash provided by (used in)investing activities is

In preparing a statement of cash flows (indirect method),cash flows from operating activities

The most likely situation in which reported earnings are positive but operations are consuming rather than generating cash would be a

The following information is available from Dodger Corporation's accounting records for the year ended December 31,2014: Net cash flow provided by operating activities for 2014 was

Cash equivalents would not include short-term investments in

Which of the following is true?

Financial Reporting

A Review of the Accounting Cycle

The Balance Sheet and Notes to the Financial Statements

The Income Statement

Earnings Management

The Revenuereceivablescash Cycle

Revenue Recognition

Inventory and Cost of Goods Sold

Investments in Noncurrent Operating Assets-Acquisition

Investments in Noncurrent Operating Assets-Utilization and Retirement

Debt Financing

Equity Financing

Investments in Debt and Equity Securities

Leases

Income Taxes

Employee Compensation-Payroll, pensions, Other Compissues

Earnings Per Share

Derivatives, contingencies, business Segments, and Interim Reports

Accounting Changes and Error Corrections

Statement of Cash Flows Revisited

Accounting in a Global Market

Analysis of Financial Statements

Filters

Exam 5: Statement of Cash Flows and Articulation

Noncash investing and financing activities,if material,are

A decrease in accounts receivable should be presented in a statement of cash flows (indirect method)as

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014: -See information regarding Dingo Boot Company above.The net cash provided by (used in)all activities is

Stanner Company's 2014 income statement reported cost of goods sold as $135,000.Additional information is as follows: If Stanner uses the direct method,what amount should Stanner report as cash paid to suppliers in its 2014 statement of cash flows?

Almondine Company sold a computer for $50,000.The computer's original cost was $250,000,and the accumulated depreciation at the date of sale was $180,000.The sale of the computer should appear on Almondine's annual statement of cash flows (indirect method)as

Thomson Company's income statement for the year ended December 31,2014,reported net income of $360,000.The financial statements also disclosed the following information: Net cash provided by operating activities for 2014 should be reported as

Which of the following statements regarding cash equivalents is correct?

Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?

Net income for Parton Company for 2014 includes the effect of the following transactions involving the sale of fixed assets: Purchases of fixed assets during 2014 amounted to $340,000.The Accumulated Depreciation account increased $40,000 during 2014.How much was depreciation expense for 2014?

The following data were taken from the books of Golden Company. Cash dividends of $169,000 were declared and paid during 2011.Also,$56,000 of preferred stock was issued during the period. Compute the net cash flow provided by (used in)operating activities during 2014 for Golden Company.

In a statement of cash flows,proceeds from issuing equity instruments should be classified as cash inflows from

Dingo Boot Company uses the direct method to prepare its statement of cash flows.The company had the following cash flows during 2014: -See information regarding Ding Boot Company above.The net cash provided by (used in)investing activities is

In preparing a statement of cash flows (indirect method),cash flows from operating activities

The most likely situation in which reported earnings are positive but operations are consuming rather than generating cash would be a

The following information is available from Dodger Corporation's accounting records for the year ended December 31,2014: Net cash flow provided by operating activities for 2014 was

Cash equivalents would not include short-term investments in

Which of the following is true?

Financial Reporting

A Review of the Accounting Cycle

The Balance Sheet and Notes to the Financial Statements

The Income Statement

Earnings Management

The Revenuereceivablescash Cycle

Revenue Recognition

Inventory and Cost of Goods Sold

Investments in Noncurrent Operating Assets-Acquisition

Investments in Noncurrent Operating Assets-Utilization and Retirement

Debt Financing

Equity Financing

Investments in Debt and Equity Securities

Leases

Income Taxes

Employee Compensation-Payroll, pensions, Other Compissues

Earnings Per Share

Derivatives, contingencies, business Segments, and Interim Reports

Accounting Changes and Error Corrections

Statement of Cash Flows Revisited

Accounting in a Global Market

Analysis of Financial Statements

Filters