su17

Bear Co. prepares its statement of cash flows using the indirect method. Bear sold equipment with a carrying value of $500,000 for cash of $400,000. How should Bear report the transaction in the operating and investing activities sections of its statement of cash flows?

$100,000 addition to net income $400,000 cash inflow

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

financing activities

Which is the most appropriate financial statement to use to determine if a company obtained financing during a year by issuing debt or equity securities?

statement of cash flows

A significant noncash transaction that need not be reported in disclosures related to the statement of cash flows is

A stock dividend declared during the year.

On July 1, Year 1, Dewey Co. signed a 20-year building lease that it reported as a finance lease. Dewey paid the monthly lease payments when due. How should Dewey report the effect of the lease payments in the financing activities section of its Year 1 statement of cash flows?

An outflow equal to the Year 1 principal payments only.

Payne Co. prepares its statement of cash flows using the indirect method. Payne's unamortized bond discount account decreased by $25,000 during the year. How should Payne report the change in unamortized bond discount in its statement of cash flows?

As an addition to net income in the operating activities section.

In accordance with IFRS, which combination below explains the effect of credit card interest incurred and paid during the period on (1) equity on the statement of financial position and (2) the statement of cash flows?

Decrease Operating or financing outflow

In a statement of cash flows (indirect method) of a business, an increase in inventories should be presented as a(n)

Deduction from income from continuing operations.

The presentation of the major classes of operating cash receipts (such as receipts from customers) minus the major classes of operating cash disbursements (such as cash paid for merchandise) is best described as the .

Direct method of calculating net cash provided or used by operating activities.

The computations required to prepare the statement of cash flows include all of the following except

Equipment purchased with a note payable.

The computations required to prepare the statement of cash flows include all of the following except .

Equipment purchased with a note payable.

The sale of available-for-sale debt securities should be accounted for on the statement of cash flows as a(n) .

Investing activity.

Cash flows from transactions in which of the following securities are most likely to be considered cash flows from operating activities?

Trading debt securities

The statement of cash flows may be presented in either a direct or an indirect (reconciliation) format. In which of these formats would cash collected from customers be presented as a gross amount? Direct Indirect

Yes no

Cash flows from operating activities

Should be presented using the direct method, but use of the indirect method of disclosure is allowed.

Paper.co

0

Abbott

300,000

Kristina

(80,000)

A company

11,000

Baler

1250,000

Kristina

1300,000

Flax

141,000

Jameson

150,000

Fara

17,000

Kristina

1700,000

Kollar

175,000

Reed

205,000

New England Co

208,000

Hoyt Corp.'s

210,000

flax

226,500

A company

250

Carlson's

250000

Sand

260,000

Kilm

330,000

Xan

356,000

Green

37000

Flax Corp

3800

Martin

40,000

Rory Co.

45,000

Flax Corp

535,800

Tam

545,000

Barber Company

600,000

Ion

65,000

Lance

70,000

Kresley

75700

Ness

76,000

Savor

84000

Which of the following items is included in the financing activities section of the statement of cash flows?

Cash effects of transactions obtaining resources from owners and providing them with a return on their investment.

Dividends paid to shareholders are shown on the statement of cash flows as

Cash flows from financing activities

Ionia Company

No yes

When the direct method of preparing a statement of cash flows is used, an enterprise should provide a reconciliation of net income to net cash flows from which activity?

Operating

In a statement of cash flows, interest payments to lenders and other creditors should be classified as cash outflows for

Operating activities.

In a statement of cash flows, if used equipment is sold at a gain, the amount shown as a cash inflow from investing activities equals the carrying amount of the equipment

Plus the gain.