Ch 11 Intro To Financial Accounting

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Borrowed 14,000, issued common stock of 11,000, and paid dividends of 16,000. What was net cash provided?

14,000 + 11,000 = 25,000 - 16,000 = 9,000 <- final answer.

operating expenses = 51,000. Owed 10,000 accured liabilities. At year end, accrued liabilities were 17,000.

51,000-17,000 = 34,000+10,000 = 44,000.

loss of disposal of equipment 1,000 equipment 1,000

operating

The three main categories of cash flows reported on a cash flow statement are

operating, investing, and financing.

a.r = 27,000 at beginning and 56,000 at end. Revenue for the year totaled 106,000.

106,00+27,000=133,000 - 56,000 = 77,000<- final answer

NI = 63,000, Dep. Exp. = 12,000 and all other expesnes. Current assets increased 11,000 and current liabilities decreased 13,000.

11,000+13,000 = 24,000 - 12,000 = 12,000; 63,000-12,000 = 51,000 <- final answer

Book Value =

Beg. Balance + Acquisitions - Dep Expanse - End Balance

Which item does not appear on a statement of cash flows prepared by the indirect​ method?

Collections from customers

insurance of common stock for cash

F+

insurance of long-term note payable in exchange for cash

F+

payment of cash dividend

F-

payment of long-term debt

F-

purchase of treausry stock

F-

Cash Sale Of Land

I+

Equipment debit 13,000. Cash Credit 13,000.

Investing

acquisition of building by issuance of common stock

NIF

acquisition of building by issuance of notes payable

NIF

decrease in accounts receiveable

O+

depreciation expense of equipment

O+

increase in accounts payable

O+

loss on sale of land

O+

indirect method:

arrives at the same number of the directed method but starts with net income and adjusts it.

investing activities:

by or sell property, plant and equipment, buy or sell investments.

net income:

changes in current assets, changes in current liabilities, non-cash revenues, non-cash expenses.

Operating activities are most closely related​ to:

current assets and current liabilities.

bonds payable 500,000 debit cash 500,000

finance

cash 80,000 treasury stock 80,000

financing

dividends payable 15,000 cash 15,000

financing

treasury stock 10,000 cash 10,000

financing

cash debit 7,5000 long term investment 7,500

investing

land 83,5000 cash 83,500

investing

direct method:

looks like an income statement

Which item appears on a statement of cash flows prepared by the indirect​ method?

net income

building 1800,,000 Note payables, long-term 1800,000

no effect

decrease in inventory

o+

net income

o+

increase if accrued liabilities

o-

increase in prepaid expenses

o-

cash 65,000 sales revenue 65,000

operating

dep. expense 9,200 acc. dep 9,200

operating

Financing activities are most closely related to

​long-term liabilities and​ stockholders' equity.


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