man acc chpt 12

Which of the following transactions would not be classified as an operating activity on the statement of cash flows? Multiple choice question. Cash paid for salaries and wages Payments for goods and services Collections on credit sales Cash dividends paid to shareholders

Cash dividends paid to shareholders

Which of the following questions could not be answered from the statement of cash flows? Multiple choice question. Where does a company spend its cash? Does the company have the resources to pursue opportunities? What are the earnings-per-share of common stock? Can the company pay its debts?

What are the earnings-per-share of common stock?

An increase in wages payable would be (added/subtracted) to (from) net income when preparing cash flows from operating activities, using the indirect method. Listen to the complete question

added

An increase in wages payable would be (added/subtracted) to (from) net income when preparing cash flows from operating activities, using the indirect method.

added

The information needed to prepare a statement of cash flows could come from all of the following sources, except the: Multiple choice question. statement of retained earnings. cash account. comparative balance sheets. income statement.

retained earnings

A company's cash receipts and cash payments are recorded in the cash account in its general ledger. Identify which of the following could not be determined by analyzing the cash account? Multiple choice question. Payment for land by issuing a note Cash payments for equipment Cash receipts from customers Cash payments on notes

Payment for land by issuing a note

In a statement of cash flows, cash received from the sale of a building would be classified under "cash flows from activities."

Blank 1: investing

The three-step analysis to determine cash provided or used by investing activities includes: Multiple select question. identifying changes in investing-related accounts reporting the cash flow effects determining the cash effects using T-accounts and reconstructed entries identifying changes in cash accounts

identifying changes in investing-related accounts reporting the cash flow effects determining the cash effects using T-accounts and reconstructed entries

Net cash used in operating activities was $10,000. Net cash provided by investing activities was $2,000. Net cash provided by financing activities was $5,000. The cash balance at the end of the year was $12,000. The cash balance at the beginning of the year was $

15000

Cash flows from financing activities identifies cash receipts and cash payments related to which of the following types of accounts? (Check all that apply.) Multiple select question. Bonds Payable Interest Payable Notes Receivable Common Stock

Bonds Payable Common Stock

Which of the following statements about the statement of cash flows are correct? (Check all that apply.) Multiple select question. It details the sources and uses of cash. The purpose is to report cash receipts and cash payments during a period. In certain circumstances, it can replace the statement of retained earnings.

It details the sources and uses of cash. The purpose is to report cash receipts and cash payments during a period.

The statement of cash flows does not report the following transactions Multiple choice question. cash inflows cash outflows transactions between cash and cash equivalents

transactions between cash and cash equivalents

Lakeview, Inc.'s statement of cash flows reports financing activities with payments that exceed receipts. This means that Lakeview had a net cash (inflow/outflow) from financing activities.

outflow

At the beginning of the year, Rex Co. showed a debit balance in the cash account of $20,500. Total debits to this account during the year were $45,000, and total credits during the year were $35,000. The net (increase/decrease) in cash for the year equals $ .

Blank 1: increase or increases Blank 2: 10000

Which of the following transactions would be reported under cash flows from operating activities? Select all that apply. Multiple select question. Cash paid for salaries and wages Cash paid to lenders for interest Cash paid for equipment Cash received from sale of investments Cash received from sales

Cash paid for salaries and wages Cash paid to lenders for interest Cash received from sales

The statement of cash flows explains the difference between beginning and ending balances of cash and cash equivalents. A cash equivalent must exhibit all of the following criteria, except: Multiple choice question. be held at a local institution. be readily convertible to a known amount of cash. be close to maturity.

be held at a local institution.

The format of a statement of cash flows includes reporting cash flows from three activities including: Multiple select question. equivalent cash financing operating investing

financing operating investing

A(n) _______ occurs when the receipts in a category exceed the payments. Multiple choice question. net cash payment net cash outflow net cash inflow net cash receipt

net cash inflow

The indirect method of computing and reporting net cash flows from operating activities involves adjusting to obtain the net cash provided or used by operating activities.

net income

Which of the following items would be added to net income when reporting cash flows from operating activities, using the indirect method? (Check all that apply.) Multiple select question. Increase in accounts payable Increase in unearned fees Decrease in wages payable Decrease in taxes payable

Increase in accounts payable Increase in unearned fees

Dividends paid during a period totaled $5,000. This will be reported on the statement of cash flows as: Multiple choice question. an increase in the financing activities section a decrease in the financing activities section a decrease in the investing activities section a decrease in the operating activities section

a decrease in the financing activities section

The statement of cash flows reports noncash investing and financing transactions in Multiple choice question. in the operating section the investing section the financing section a note or separate schedule

a note or separate schedule

The Coffee Cup Company had a credit balance of $500 in interest payable at the beginning of the period, and a credit balance of $600 at the end of the period. Based on this information, the adjustment to net income for the period will be reported as: Multiple choice question. an increase of $100 which will be added to net income a decrease of $100 which will be added to net income an increase of $100 which will be subtracted from net income a decrease of $100 which will be subtracted from net income

an increase of $100 which will be added to net income

Sunshine Company had a credit balance of $4,000 in accounts payable at the beginning of the period, and a credit balance of $6,000 at the end of the period. Based on this information, the adjustment to net income for the period will be reported as: Multiple choice question. an increase of $2,000 which will be subtracted from net income a decrease of $2,000 which will be subtracted from net income an increase of $2,000 which will be added to net income a decrease of $2,000 which will be added to net income

an increase of $2,000 which will be added to net income

At the beginning of the period, a company reported $100,000 of common stock, $10 par; and $50,000 paid-in capital in excess of par. At the end of the period, this company reported $110,000 of common stock, $10 par; and $90,000 paid-in capital in excess of par. Cash received from the sale of common stock during the year is $ . Listen to the complete question

50000

A company repaid a long-term debt during the year. They will report this as a(n) (increase/decrease) in the activities section on the statement of cash flows.

Blank 1: decrease Blank 2: financing

Cash flows provided (used) by operating activities are reported in one of two ways: the method or the method. These two methods apply only to the operating activities section. Listen to the complete question

Blank 1: direct or indirect Blank 2: indirect or direct

Select all that apply The information needed to prepare a statement of cash flows could come from which of the following sources? (Check all that apply.) Multiple select question. Cash account Statement of retained earnings Comparative balance sheets Income statement

Cash account Comparative balance sheets Income statement Need help? Review these concept resources.

Which of the following transactions would not be reported under investing activities in the statement of cash flows? Multiple choice question. Cash receipts from collecting principal on loans, which do not result from sales Cash paid for interest on long-term notes Cash paid to purchase investments Cash paid to purchase plant assets

Cash paid for interest on long-term notes

Which of the following transactions would be reported under investing activities in the statement of cash flows? (Check all that apply.) Multiple select question. Cash paid for interest on long-term notes Cash paid to purchase investments in securities Cash paid to purchase plant assets Cash distributions to shareholders

Cash paid to purchase investments in securities Cash paid to purchase plant assets

A company's cash receipts and cash payments are recorded in the cash account in its general ledger. Which of the following can be determined by analyzing the cash account? (Check all that apply.) Multiple select question. Payment for land by issuing a note Cash payments for equipment Cash receipts from customers Cash payments on notes

Cash payments for equipment Cash receipts from customers Cash payments on notes

Which of the following items would be reported under financing activities on the statement of cash flows? (Select all that apply). Multiple select question. Cash received from issuing notes payable Cash paid for interest on long-term debt Cash dividends paid to shareholders Cash paid to repay debt

Cash received from issuing notes payable Cash dividends paid to shareholders Cash paid to repay debt

Which of the following would not be reported under financing activities on the statement of cash flows? Multiple choice question. Cash contributions by owners Cash received from issuing bonds Cash received from sale of plant assets Cash paid to purchase treasury stock

Cash received from sale of plant assets

Information about cash flows can influence decision makers in important ways. Which of the following questions could be answered by the statement of cash flows? (Check all that apply.) Multiple select question. Is the company using its assets efficiently? Does the company have the resources to pursue opportunities? How does a company spend its cash? Can the company pay its debts?

Does the company have the resources to pursue opportunities? How does a company spend its cash? Can the company pay its debts?

Accountants can use a three-step process to determine cash provided (or used) by investing activities. Which of the following steps is not part of this process? Multiple choice question. Determine the cash effects using T-accounts. Identify adjustments to net income. Identify changes in investing-related accounts. Report their cash flow effects.

Identify adjustments to net income.

Accountants can use a three-step process to determine cash provided (or used) by investing activities. Which of the following steps is not part of this process? Multiple choice question. Identify changes in investing-related accounts. Identify adjustments to net income. Report their cash flow effects. Determine the cash effects using T-accounts.

Identify adjustments to net income.

A company reported total assets at the end of the previous year of $95,000; including cash of $35,000, accounts receivable of $20,000, and inventory of $40,000. It reported total assets at the end of the current year of $110,000; including cash of $44,000; accounts receivable of $29,000, and inventory of $37,000. Compute the net increase or decrease in cash for the current year. Multiple choice question. Increase of $15,000 Decrease of $9,000 Increase of $9,000 Decrease of $15,000

Increase of $9,000

Identify which of the following items is a noncash investing and financing activity that must be reported in a note to the statement of cash flows. (Check all that apply.) Multiple select question. Repayment of a note with cash Lease of an asset in a long-term lease transaction Purchase of a plant asset with cash Retirement of debt by issuing stock

Lease of an asset in a long-term lease transaction Retirement of debt by issuing stock

Which of the following items are classified as noncash investing and financing activities? (Check all that apply.) Multiple select question. Lease of assets in a long-term lease transaction Repayment of a note with cash Retirement of debt by issuing stock Conversion of preferred stock to common stock

Lease of assets in a long-term lease transaction Retirement of debt by issuing stock Conversion of preferred stock to common stock

Which of the following would be included in the operating section when preparing the statement of cash flows using the indirect method? Multiple choice question. Net income Cash receipts from customers Cash payments for interest Cash payments for rent

Net income

Which of the following items are classified as noncash investing and financing activities? (Check all that apply.) Multiple select question. Retirement of debt by issuing stock Conversion of preferred stock to common stock Lease of assets in a long-term lease transaction Repayment of a note with cash

Retirement of debt by issuing stock Conversion of preferred stock to common stock Lease of assets in a long-term lease transaction

Information on the statement of cash flows helps users answer all of the following questions except: Multiple choice question. How does a company obtain its cash? Why did the company invest in long-term assets? Why was there a change in the cash balance? Where does a company spend its cash?

Why did the company invest in long-term assets?

Sheldon Company's balance in prepaid insurance at the beginning and end of the year was $2,500 and $1,000, respectively. This will be reported on the statement of cash flows using the indirect method as: Multiple choice question. an increase of $1,500 which will be added to net income an increase of $1,500 which will be subtracted from net income a decrease of $1,500 which will be added to net income a decrease of $1,500 which will be subtracted from net income

a decrease of $1,500 which will be added to net income

Emerald Jewelery Store had a credit balance in interest payable of $200 at the beginning of the period, and a credit balance of $50 at the end of the period. Based on this information, the adjustment to net income for the period will be reported as: Multiple choice question. an increase of $150 which will be added to net income a decrease of $150 which will be subtracted from net income an increase of $150 which will be subtracted from net income a decrease of $150 which will be added to net income

a decrease of $150 which will be subtracted from net income

LiveLife Company had a credit balance of $10,000 in accounts payable at the beginning of the period, and a credit balance of $6,000 at the end of the period. Based on this information, the adjustment to net income for the period will be reported as: Multiple choice question. an increase of $4,000 which will be subtracted from net income a decrease of $4,000 which will be added to net income an increase of $4,000 which will be added to net income a decrease of $4,000 which will be subtracted from net income

a decrease of $4,000 which will be subtracted from net income

Reid Company's balance in prepaid insurance at the beginning and end of the year was $1,000 and $1,200, respectively. This will be reported on the statement of cash flows using the indirect method as: Multiple choice question. a decrease of $200 which will be subtracted from net income an increase of $200 which will be subtracted from net income a decrease of $200 which will be added to net income an increase of $200 which will be added to net income

an increase of $200 which will be subtracted from net income

Starfish Shells had a beginning balance in Notes Payable of $35,000 and an ending balance of $40,000. This will be reported as _____ on the statement of cash flows. Multiple choice question. a decrease of $5,000 in the cash flows from investing activities section an increase of $5,000 in the cash flows from financing activities section an increase of $5,000 in the cash flows from investing activities section a decrease of $5,000 in the cash flows from financing activities section

an increase of $5,000 in the cash flows from financing activities section

A net cash (inflow/outflow) occurs when the receipts in a category exceed the payments. Listen to the complete question

inflow

To compute cash flows from financing activities, accountants normally analyze changes in all of the following accounts except: Multiple choice question. Interest Payable Notes Payable Bonds Payable Common Stock Retained Earnings

interest payable

The presentation of the _____ section is shown differently depending on if the statement of cash flows is reported using the direct or indirect method. Multiple choice question. Financing Noncash Operating Investing

operating

A net cash ______ occurs when the payments in a category exceed the receipts. Multiple choice question. receipt outflow payment inflow

outflow

A net cash ______ occurs when the payments in a category exceed the receipts. Multiple choice question. receipt payment outflow inflow

outflow