Question 1

Use the following information to prepare a statement of cash flows (direct method)for Yoyo Corporation for the year ended December 31,20B.

Accepted Answer

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

Question 2

The statement of cash flows and the statement of cash flows both report on the causes of the changes in the cash of the business.

Accepted Answer

A) True 
 B)False

Question 3

Cash collected from customers is a cash flow from a financing activity.

Accepted Answer

A) True 
 B)False

Question 4

To prepare a statement of cash flows (indirect method),which of the following items should be added back to profit to derive "cash flow from operating activities"?

Accepted Answer

A) Depreciation expense. 
B) Increase in trade receivables. 
C) Gain on a sale of equipment. 
D) Decrease in trade payables.

Question 5

The income statement,statement of financial position and statement of cash flows all are prepared on the accrual basis.

Accepted Answer

A) True 
 B)False

Question 6

In 2012,The W D Company reported profit of $1.3 billion and cash flow from operations of $5.6 billion.In 2011,it profit was $1.9 billion and cash flow from operations was $5.1 billion.What were their quality of income ratios for 2012 and 2011 respectively?

Accepted Answer

A) .23 and .37 
B) .91 and 1.46 
C) 1.10 and .68 
D) 4.31 and 2.68

Question 7

The net cash inflow (or outflow)from operating activities is computed by adjusting the reported accrual profit for noncash revenue and noncash expense items.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following transactions is not a direct source of cash?

Accepted Answer

A) Disposal of inventory for cash. 
B) Borrowing cash. 
C) Sale and issuance of shares for cash. 
D) Sale of services on credit.

Exam 5: Communicating and Interpreting Accounting Information

Use the following information to prepare a statement of cash flows (direct method)for Yoyo Corporation for the year ended December 31,20B.

The statement of cash flows and the statement of cash flows both report on the causes of the changes in the cash of the business.

Cash collected from customers is a cash flow from a financing activity.

To prepare a statement of cash flows (indirect method) ,which of the following items should be added back to profit to derive "cash flow from operating activities"?

The income statement,statement of financial position and statement of cash flows all are prepared on the accrual basis.

In 2012,The W D Company reported profit of $1.3 billion and cash flow from operations of $5.6 billion.In 2011,it profit was $1.9 billion and cash flow from operations was $5.1 billion.What were their quality of income ratios for 2012 and 2011 respectively?

The net cash inflow (or outflow)from operating activities is computed by adjusting the reported accrual profit for noncash revenue and noncash expense items.

Which of the following transactions is not a direct source of cash?