FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 14: The Statement of Cash Flows

Show Answer

Share

---

All types

Filters

Study Flashcards

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

The payment of interest on a loan is considered a ________ on a statement of cash flows prepared using the direct method.

A) cash outflow for operating activities
B) cash outflow for investing activities
C) cash outflow for financing activities
D) non-cash activity

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 2

True/False

Review LaterAdd Note

Review Later

Financing activities on the statement of cash flows affect the long-term liability and equity accounts.

A) True
B) False

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

When preparing the statement of cash flows using the indirect method,a decrease in current liabilities is added to the net income to arrive at net cash provided by operating activities.

Using the direct method,interest expense paid on a note payable is included in the operating activities section of the statement of cash flows.

Issuing preferred stock to stockholders in exchange for cash is shown under the financing activities section of the statement of cash flows.

Boulevard,Inc.uses the direct method to prepare its statement of cash flows.Use the following information reported for 2019: Sales Revenue,$45,000 Interest Revenue,$800 Accounts Receivable,beginning balance,$13,100 Accounts Receivable,ending balance,$27,000 There were no amounts reported for Interest Receivable. Compute the total cash receipts.

Wisconsin Farm Equipment Company sold equipment for cash.The income statement shows a loss on the sale of $6000.The net book value of the asset was $30,900.Which of the following statements describes the cash effect of the transaction?

Virginia Company uses the indirect method to prepare the statement of cash flows.Refer to the following section of the comparative balance sheet: How will the change in Accounts Payable be shown on the statement of cash flows?

Oregon Company is preparing its statement of cash flows using the indirect method.During the year,the company purchased equipment for $15,000 cash.Which of the following statements is true?

Tennessee Moving Company uses the indirect method to prepare its statement of cash flows.Refer to the following portion of the comparative balance sheet: If the net income for the year was $66,000,the company must have declared $44,000 as dividends during the year.

Delaware Coatings Company uses the indirect method to prepare its statement of cash flows.Refer to the following information for the year 2019: Net cash provided by operating activities: $45,000 Net cash used for investing activities: $(29,000) Net cash provided by financing activities: $2000 What is the net change in cash during the year?

To complete the statement of cash flows,the net change in cash and its effects on the beginning cash balance must be shown.

Nebraska Auto Parts Company uses the indirect method to prepare the statement of cash flows.Refer to the following income statement: Additional information provided by the company includes the following: Current assets other than cash increase by $36,000. Current liabilities decrease by $1,500. Prepare the operating activities section of the statement of cash flows.

Which of the following transactions would be shown in the non-cash investing and financing activities section of the statement of cash flows?

Arkansas Corp.is preparing its statement of cash flows using the indirect method.It provides the following information about transactions for the year: Plant assets,net-beginning balance: $111,000 Plant assets,net-ending balance: $145,000 Equipment was purchased for $65,000 with cash. Equipment with a net asset value of $12,000 was sold for $19,000. Depreciation Expense of $19,000 was recorded during the year. What was the amount of net cash provided by (used for) investing activities?

Designer Paints Company uses the direct method for preparing its statement of cash flow.Designer Paints reports the following information regarding 2018: From the income statement: Sales Revenues,$268,000 Cost of Goods Sold,$210,000 Operating Expenses,$33,000 From the balance sheet: What amount will be shown for payments to suppliers for Merchandise Inventory purchases? (Assume that Accounts Payable are for purchases of merchandise inventory only. )

The investing activities section of the statement of cash flows reports cash receipts and payments that increase or decrease long-term liabilities.

The net cash provided by operating activities is calculated in the same way,whether the company uses the direct or the indirect method of preparing the statement of cash flows.

Which of the following is true of the statement of cash flows?

The direct method starts with net income and adjusts it to net cash provided by operating activities.