Chapter 17 quiz
Accounts receivable arising from sales to customers amounted to $86,000 and $77,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $290,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is A. $299,000. B. $280,000. C. $290,000. D. $213,000.
A.
In Jude Company, land decreased $150,000 because of a cash sale for $150,000, the equipment account increased $60,000 as a result of a cash purchase, and Bonds Payable increased $120,000 from issuance for cash at face value. The net cash provided by investing activities is A. $90,000. B. $210,000. C. $150,000. D. $270,000.
A.
Indicate where the issuance of common stock issued for cash would appear, if at all, on the indirect statement of cash flows. A. Financing activities section B. Does not represent a cash flow C. Investing activities section D. Operating activities section
A.
Lending money and collecting the loans are A. investing activities. B. operating activities. C. financing activities. D. Non-cash investing and financing activities.
A.
Vision Company purchased treasury stock with a cost of $16,000 during 2020. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $860,000. Cash flows from financing activities for 2020 total A. $824,000 net cash inflow. B. $840,000 net cash inflow. C. $856,000 net cash inflow. D. $860,000 net cash outflow.
A.
Which of the following transactions does not affect cash during a period? A. Write-off of an uncollectible account B. Sale of treasury stock C. Collection of an accounts receivable D. Exercise of the call option on bonds payable
A.
Generally, the most important category on the statement of cash flows is cash flows from A. financing activities. B. operating activities. C. investing activities. D. significant noncash activities.
B.
Indicate where the purchase of land for cash would appear, if at all, on the indirect statement of cash flows. A. Does not represent a cash flow B. Investing activities section C. Operating activities section D. Financing activities section
B.
Significant noncash transactions would not include A. exchange of plant assets. B. treasury stock acquisition. C. asset acquisition through bond issuance. D. conversion of bonds into common stock.
B.
The acquisition of land by issuing common stock is A. a noncash transaction and would be reported in the body of a statement of cash flows. B. a noncash transaction which is not reported in the body of a statement of cash flows. C. a cash transaction and would be reported in the body of a statement of cash flows. D. only reported if the statement of cash flows is prepared using the direct method.
B.
Financing activities involve A. acquiring long-lived assets. B. lending money. C. issuing debt. D. acquiring investments.
C.
Which one of the following items is not necessary in preparing a statement of cash flows? A. Determine cash from financing and investing activities B. Determine the cash provided by operations C. Determine the cash in all bank accounts D. Determine the change in cash
C.
Cash receipts from interest and dividends are classified as A. investing activities. B. either financing or investing activities. C. financing activities. D. operating activities.
D.
If a company reports a net loss on the income statement, it A. will not be able to pay cash dividends. B. will not be able to get a loan. C. will not be able to make capital expenditures. D. may still have a net increase in cash.
D.
The statement of cash flows A. is another name for the income statement. B. is a special section of the income statement. C. must be prepared on a daily basis. D. summarizes the operating, financing, and investing activities of an entity.
D.