Ch. 6

Lakukan tugas rumah & ujian kamu dengan baik sekarang menggunakan Quizwiz!

What are current assets for San Marcos​ Corporation?

1,033 / 918

Which of the following statement describes the concept of liquidity

Measure of an asset's ability to be quickly converted to cash without risk of loss

Which of the following is not a cash equivalent?

bond sinking fund

Which of the following is considered a financing activity when preparing the statement of cash​ flows?

cash receipt from the sale of common stock

If an auditor is not able to gather enough evidence to form an opinion on financial statement the auditor issues a

disclaimer of opinion

Which of the following is classified as an operating activity on a statement of cash​flows?

purchase of inventory with cash

nvestments are treasury bills that were purchased in May and mature on August 15. Prepaid insurance is a threeminus−year policy that was purchased on July 31.

142,500

What amount should the Black Knights Company report as cash paid to suppliers in its cash flow​ statement, prepared under the direct​ method?

330,000

Presented here are cash flows​ (in $​ Millions) for Valley Mills​ Enterprises' most recent fiscal year. Net cash flows provided​ (used) by operating activities​ (direct method) are​________.

55 /1100

When preparing the operating section of the statement of cash flows using the indirect​ method, which of the following items are added to net​ income?

Bad debt expense

Which of the following items would not be included in the operation activities section of an entity's statement of cash flow under US GAAP ?

Dividend paid

Accumulated other comprehensive income appear on the entity's income statement

False

Which of the following would probably not be a related party?

a customer

What amount should Vegas report as cash received from customers in its current year statement of cash flows prepared using the direct​ method?

1,110,000

The amount that should be classified as current liabilities on​ Glover's December 31 balance sheet is​ ________.

101,000

Sykes​ Corporation's comparative balance sheets at December​ 31, Year 2 and Year 1 reported accumulated depreciation balances of​ $800,000 and​ $600,000 respectively. Property with a cost of​ $50,000 and a carrying amount of​ $40,000 was the only property sold in Year 2. Depreciation charged to operations in Year 2​was:

210,000

Danielsen Inc. had salaries payable of $ 40 comma 000$40,000 as of January 1 and $ 20 comma 000$20,000 as of December 31. During the​ year, Danielsen showed $ 650 comma 000$650,000 in salaries expense on the income statement. Cash outflows for salaries for the year were​ ________.

670,000

During Year​ 1, Brianna Company had the following transactions related to its financial​ operations: Payment for the retirement of​ long-term bonds payable​ (carrying value​ $740,000) ​$ 750,000 Distribution in Year 1 of cash dividend declared in Year 0 to preferred shareholders ​62,000 Carrying value of convertible preferred stock of Brianna converted into common shares ​120,000 Proceeds from sale of treasury stock​ (carrying value at cost​ $86,000) ​95,000 On its Year 1 statement of cash​ flows, net cash used in financing activities should​be:

717,000

On its current year statement of cash​ flows, what is Big​ Dollars' net cash provided by operating​ activities

752,000

Disclosure of a related party transaction must include an evaluation of the fairness of the transactions term

False

The statement of cash flow summarizes a firms cash inflows & outflows at a specific point in time

False

WHen using the indirent method to report cash flows form operating activities, depreciation expense is subtracted from net income to arrive at net cash provided by operating activities

False

When preparing the operating activities section of the statement of cash flows under the indirect​ method, depreciation expense is subtracted from net income.

False

Which of the following statements regarding balance sheet presentation is true

IFRS does not prescribe the ordering of liabilities within current & non-current groups

Bales company is preparing a statement of cash flow. Which of the following would be shown on the statement?

NONE

Kong Co. purchased a​ three-month U.S. Treasury bill.​ Kong's policy is to treat as cash equivalents all highly liquid investments with an original maturity of three months or less when purchased. How should this purchase be reported in​ Kong's statement of cash​ flows?

Not reported

Redemption of bonds payable is classified as financing activity on the statement of cash flows

True

The account format of the balance sheet lists assets on the left side & liabilities and stockholder equity on the right side of the statement

True

When preparing the operating activities section of the statement of cash flows under the indirect​ method, gains on sale of equipment are subtracted from net income.

True

When using the direct method of reporting cash flows from operating​ activities, increases in accounts receivable are subtracted from revenues to arrive at cash receipts from customers.

True

Details about the composition of intangible assets are located in the summary of significant accounting policies

false

The FASB prefers the indirect method of preparing the operating activities section of the statement of cash flows.

false

The management discussion & analysis section of the annual report is a part of the audited financial statements

false

All of the following activities are classified as investing activities on a statement of cash flows except​ ________.

gain on sale of securities

When preparing the operating section of the statement of cash flows using the indirect​ method, which of the following items are added to net​ income?

loss on sale of equipment

If subsequent event relates to a condition that existed at the balance sheet date, then teh financial statement should be adjusted

true

The balance shet reflects the financial position of an entity over a period of time

true

If there is concern that a company might not continue in​ existence, but the auditor has concluded that the financial statements are fairly​ presented, the opinion that will be issued is​ a(n) ________.

unqualified opinion with explanatory paragraph


Set pelajaran terkait

Adding and Subtracting Fractions - Practice, Adding and Subtracting Fractions, Adding Fractions Unlike Denominators, Fractions, Adding and Subtracting Fractions, Adding Fractions, Subtracting Fractions

View Set

Texas History/ Foundation, Skills, Research, and Instructions

View Set

Human Resources Management - Chapter 2: Trends in HRM

View Set