accounting chapter 11

The sale of land for cash would be classified as a cash inflow from an operating activity on the statement of cash flows.

false

Under the indirect method to prepare the statement of cash​ flows, a decrease in a current asset other than cash indicates a deduction from net income when calculating Net cash provided by operating activities.

false

Cash received from the issuance of bonds would be reported on a statement of cash flows​ under:

financing activities

Increases and decreases in the long−term liability accounts are reported on the statement of cash flows​ as:

financing activities

Purchases of treasury stock would be reported on a statement of cash flows​ as:

financing activities

Which financial statements cover a period of​ time?

income statement, statement of stockholders' equity and statement of cash flows

Increases and decreases in the long−term assets are reported on the statement of cash flows​ as:

investing activities

On the statement of cash​ flows, in which section would the purchase of land with cash​ appear?

investing activities

Financing activities on a statement of cash flows relate​ to:

long-term liabilities and stockholders' equity

The three types of activities reported on the statement of cash flows​ are:

operating, investing, and financing

Which of the following would be reported on a statement of cash flows as an investing​ activity?

sale of equipment for cash

On January​ 1, 2023, the Notes Receivable account has a balance of $12,000. On December​ 31, 2023, the Notes Receivable account has a balance of $120,000. No collections on notes receivable occurred in 2023. What is the amount of long−term notes that were made in​ 2023?

$108,000

On January​ 1, 2023, plant​ assets, net are $220,000 and on December​ 31, 2023, plant​ assets, net are $290,000. Depreciation expense for the year is $120,000. No plant assets were sold or exchanged during the year. What is the cost of the plant assets acquired during the​ year?

$190,000

On January​ 1, 2023, plant​ assets, net are $200,000. On December​ 31, 2023, plant​ assets, net are $290,000. Depreciation expense for the year is $19,000. During the​ year, plant assets were acquired for $146,000 with cash. There is a Gain on sale of plant asset of $10,000. What is the book value of the plant asset sold during the​ year?

$37,000

Anew Health Care Company reports net income of $180,000 and Depreciation Expense of $23,000 for the year ending December​ 31, 2023. No long−term assets were sold or exchanged during 2023. They also have the following data​ available: (see image) Using the indirect​ method, what is the net cash provided by operating activities for the year ending December​ 31, 2023?

$73,000

Anew Health Care Company reports net income of​ $220,000 and Depreciation Expense of​ $20,000 for the year ending December​ 31, 2023. No long−term assets were sold or exchanged during 2023. They also have the following data​ available: (see image) Using the indirect​ method, what is the net cash provided by operating activities for the year ending December​ 31, 2023?

$98,000

In​ 2023, Gary Kraen Company purchases​ $100,000 of equipment with cash. This purchase would be reported on Gary Kraen​ Company's 2023 statement of cash flows​ as:

an investing activity

A gain on sale of equipment is subtracted from net income when determining Net cash provided by operating activities under the indirect method of preparing the statement of cash flows.

true

The statement of cash flows explains why the cash balance changed over a period of time.

true

Under the indirect method to prepare the statement of cash​ flows, a decrease in accounts payable is deducted from net income when calculating Net cash provided by operating activities.

true

Under the indirect method to prepare the statement of cash​ flows, a loss on the sale of long−term assets is added to net income when calculating Net cash provided by operating activities.

true

Using the indirect method to prepare the statement of cash​ flows, an increase in accounts receivable is subtracted from net income in calculating Net cash provided by operating activities.

true